Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1878-01-30

The most significant inference from
the foregoing table is that, wherever
there is the most money in circulation
in proportion to those engaged in trade,
there the failures are most numerous
This is a fresh demonstration to the
belief that it is not from need of money
that the country is suffering. 1t is a
favOrlte argument IN certain quarters,
that if congress would create more
money the failures would be less. The
facts warrant no such conclusion; on
the contrary, decision in perfectly
opposite direction is reached by an ex-
animation of the above table. 1t would
be equally good logic to say that the
currency to every trader in the west
averaged only 1921, and only one to
every eighty-tive failed; so because the
currency in the eastern states equaled
81 $50 for each trader, therefore one in
every fifty-eight succumbed-in other
words. that because the circulating me-
dunn is five times more plentiful for
each trader in the eastern states than in
the western, the failures should be 25
per cent. greater. No one thinks Of
urging such a preposterOus proposition,
yet it is not more unreasonable than to
allege that failures will be checked by
an issue Of more money. The fact is,
that the chief cause Of the numerous
failures is that too much money was
available in the past. The startling
failures in most cases are not caused by
recent transactions, but by departures
from legitimate business principles in
the time of infation'
Some further comparisons are insti-
tuted, to prove that failures are not at
tributable to the lack of available bank
capital for business purposes. The re-
port says:
"The national banking capital in the
middle states is one hundred and eighty
millions, and the number of traders en-
ploying it are two hundred twenty-four
thousand. The banking capital in the
western states is only eighty-nine nil
lions, with two hundred and thirty-one
thousand traders. The difference in the
number Of traders in the two sections is
very slight, yet Notwithstanding the fact
that the banking capital in the middle
states is over double that Of the western
states, the failures are ten per cent
greater. NlSIOIlltllC HAS come 10 only
every eighty-fourth trader in the west;
but it has overtaken every seventy-third
business man in the middle states. 1t
will not do to account for this difference
by the assertion that more capital IS
needed and absorbed in the business of
the east, and that the lookup of funds is
greater. This may be true in some
respects, but the argument is best met
in the comparison ofthe average liabil-
tiles in the above table, by which it will
be seen that failures in western states
average $20,3S against $19,2Sl in
eastern states. The figures for the
southern states as compared with those
of the New England states are even
more suggestive. Notwithstanding the
solidity and wealth of New England, its
established sources of income from its
long career and success, and its enor-
nous investments within and without
its own border, its perfect monetary
facilities, and other great advantages,
yet all this does preserve its traders
from failing in numbers far greater than
in the southern states-ruined by war,