New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-22


The table shows that there has been an in
crease in total circulation outside Of the Treas
uIy every year since 1884 except in 1886.
1t cannot be said, therefore, that the Govern
ment has been locking up money and thereby
contracting currency. The banks have a much
larger business to do than they did in 1884, and
require larger reserves. The official reports of
the Controller ofx he Currency show that the
loans increased from one thousand two hundred
and seventy to one thousand six hundred and
twenty EIGHT millions, and their holdings Of all
kinds Of money are shown in the second col
umn of the above table, excepting that for
June 80, 1889, the official reports have not
vet been made, and the figures inserted are
those for May / 3. While the increase in money
held by the banks was over 81 90, 900, 600 dur
ing the five years, the fact remains that there
was a further increase of about S39 900, 600
in the amount in actual circulation outside of
both the Treasury and the banks. Hence there
has been no contraction Of the currency during
this period of five years by locking up money
i,her in the Treasury or in the National banks,
and consequently no shfinkage in values can
be attributed to a contraction which has not
occurred
Let us frankly recognize facts as they are,
friends Of the West. There is no other way
to set matters right; no other way to find ont
what it is that needs to be set right. If we
have fixed but mistaken idea of the facts. and
charge all evils to that, there is no possibility
Of getting at the true cause The thing need
full first Of all is to see that there has not been
a contraction in the volume of the currency,
either in the entire volume outside the Treas
ury or in the circulation outside the National
banks In both there has been an increase,
whether as large as some desire or not.
The description Of evils above quoted is mob
strictly accurate; in many parts of the West
there has been and still is enthusiasm over
rapid growth in population and wealth. in agri-
cultural production, in volume Of trade sus-
tanned mainly by the purchases of farmers, in
the value Of farms and other real estate. No
one can examine the local journals of the West
without seeing overwhelming evidence Of this
state Of things at many points. The common
criticism is that this enthusiasm is excessive,
the growth too rapid, the production advancing
too fast for the consuming markets, and the
rise in prices somewhat eXtravagant. In spite
Of such criticism the real progress has been
marvellous at thousands OF places, and this
state Of things would be literally impossible
if the farming population throughout the West
was in distress. Prices of farm products are
low, hut the general average of manufactured
products and all things which the farmer has
to buy is in Eastern wholesale markets at least
correspondingly low, while the cost of trans
portatOn has declined even more than the
prices of farm products. If in any locality an
opposite state of things exists, reasons should
be sought in the conditions especially affecting
that locality, and not in acts of Government
which affect the entire section alike. Thus it
may be found that population and trade. cap
itaI. enterprise and business have been divert
ed from some quarters to others by the recent
building Of many thousands of miles of rail
road and the cause Of that shifting should he
sought
THE TRIBUNE is most anxious to lift all UNI
necessary burdens from the farmers who are
in many respects the most reliable and valuable
citizens Of the country. and whose industry is
the very foundation of its prosperity. 1t has
not asSaled contraction which has not &C.
cured, but has found many reasons for beiev-
ing that unreasonable and excessive supplies of
currency, poured first into monetary centres
where speculation has been most active have
improperly stimulated speculation in products
aud stocks. caused undue diversion of capital
TO that and TO the building of railroads on
which securities could be issued, kindled IL
raging fire of real estate speculation, involved
multtudes in debt and loss and made ineyi-
table an unnatural depression of prices conse-
quent upon the speculative advance. This, at
least is celtain-that, if the volume of money
has in any way affected prosperity, it has been
by increase and expansion and not by locking
I'D or contraction.
Yesterdays tcmperature hereabouts, was 4