The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1885-06-04
ND OF THE MONEY GLur.

A study of the last New York bank
statement will lead one to conclude
hat there ought to be no financial
distress in this country. 1t is usually
believed, that where money is plentl-
full times are easy, and yet the general
financial condition has improved but
little, while money has become glut.
Millions are lying idle, because there
is yet no demand for money on
terms that would make it permanent
ly useful. One year ago the New Y ork |
banks held surplus of only $3,137,-
OPS over what the law requires them
to hold, while the last report made
shows that they now hold $54, s89,025
over the required sum. This condi-
ton of things is not confined to New
York. It exists in Philadelphia, Bos-
ton and all the other Eastern cities.
If we go back to the condition in 1873,
when the country was paraIyzed by a
panic, it will be recollected that it took
three or four years for recupera-
ton and for the establishment of re-
newed confidence. That panic was
caused by overproduction, that people
were led to be more conservative in
ventures is also known. The i'm
mense crops of 1889 at last induced
healthful feeling IN the employment.
of capital in 1879 and 1880. There was
large demand abroad for our surplus
agricultural products, and this sur
plus was disposed of at good prices
There was large increase in the
lalance of trade between Europe and
America in our favor, and there
was an abundance of idle money
At this time the Government thought
it a good time to refund the Govern
ment loan, which was done, and thi!
paying off threw large additional
capital on the market. What wa
called the "boom" of 1879 80 was
consequence. Prices were stimulates
and speculative prices were unnatu
t rally high. Even some staples, lik
3 iron, went up to phenomenally higl
!, figures. Then there came dry sum
l mer, with short crops, and while ther
S was no commercial panic there was
e gradual shrinkage in prices, which IT
S suited in loss to holders, consumptio
b was greatly reduced and PRACTICAL
f over production in manufacture
g was the consequence. Stagnatio
It followed, and from this there has bee
g the slowest recuperation. But tt
IS signs of the times point clearly to
g repetition of what has occurred b
e fore. The ups snd downs of the hnar
: cial world are as regular as Che sec
II sons; the causes which produce OF
E. have to be overcome before The 9th,
Y, ensues, and then the same caus
lead to repeated effects. Confidence b
not been restored, and the vast amour
/ OF money is lying idle because tt
Is people lack confidence to inves
ID Change will gradually ensue. and di
trust in business will then end. Bal
y failures are about ended, and boul
$ tiful crop will, after awhile lead Il
I'd people to take up the money that no
N goes begging. All values have go
or down and money proportionately. N
lg cessarily, when good sells at per ce
is less than they formerly did, CORE
e. ponding smaller capital is required
es operate them. The practice
v been to cut, and as Il
is capital is not legitimate
40 employed it he's accum
IL lated. Idle capital affects the rich
IN their income and the poor in the wit
20 drawal of money, and the conseque
l. Iessened mount of labor. But it will D
Is be continuous, and when the reacti
OF comes everything will have healt
u Ter aspect. Capital is always. seeki
~ investment, and as soon as owners
n money feel reasonably safe t
glut will be removed. The
III are already evidences of capital b
n ginning to move. The crop will CT
ate greater demand for it, and il
millions will soon be made acti'
Then another business and 1mproV
% lnent boom will follow, and Texas, '
y, are satisfied, will secure full shs
IS of benefits derived from the end
lg the money glut.