The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-12-08
The Financial Situation Discussed
by One Of the Leading Phil
delphia Newspapers.
Only a Gamblers Panic Which
Business Conditions Do Not
Warrant at All.
The Cash ID Locked Up to Meet Demands
Which are Improbable Under
Any Circumstances.

PHILADELPHIA, dec. O.-DlScusS1nk LIZ
financial situation the Times, OF this city
of Nov. %, said: The money market is as
stringent to-day as it was ten days ago, al.
though the causes which precipitated the
revulsion are now we'll understood and the
general solyency of the country not doubted
Why is it, therefore, that severe stringency
continues in the money market? 1t is not
because there is not money to aid business.
There have been some unusual demands for
money by the return of American securities
from abroad. and for the moving of large
crops; but there is no reason why the
strangling monetary stringency should con-
tinue for another day.
The single reason, or rather, the single
excuse, for the continued stringency in the
money market is the want of general conf
dence in business and financial circles.
Each bank or other institution having
deposits subject to call distrusts itself,
distrusts it's depositors and distrusts
everybody, and, instead of aiding legiti-
mate business just when it most needs it.,
the financial institutions are terroriZed into
calling in their loans locking up their
money and waiting for panicky runs upon
them that are certain not to come unless
buo DhukeTS LuenseAVeS PIoOuco paulc W
breaking business men who are fairly enti-
tied to credit.
There is just as much money now as there
was one month ago, when all the legitimate
needs of business were met by our financial
institutions; but to-day money can't be
borrowed on government bonds because the
financial institutions say that they have no
money to lend. Thus millions Of money
are tied up in banks and trust companies
when legitimate business is paralyzed for
want of the usual accommodations, aud
when bankruptcy stares many solvent
houses in the face, because the holders of
deposits must be prepared for panics and
runs which can now be precipitated only
~ the continued want of money in bust
neds channels. Can any intelligent fnan-
dial man now doubt that il the financial
Institutions would look each other in the
face, decide to trust themselves, their de-
positors and the business public, and extend
their discounts to the normal standard,
business confidence would be speedily re-
stored, and every banking house would be
safer than it is to-day?
1t is we'll that financial circles are con-
servative. The safety of legitimate bust
ness depends largely upon the safety of our
financial institutions; but is it not strain
ing consel vatism when money is locked up
to meet demands which are improbable un-
der any circumstances, and impossible
under liberal financial policy?
There is nothing in the conditions of
business throughout the country to war
rant severe financial stringency at this
time. The financial rottenness abroad has
erupted and is rapidly healing itself. Our
crops are unexampled in volume and value;
our railways exhibit liberal profits even in
spite of cut throat competition; our indus
tries are reasonably prosperous; and there
is general solvency among the people of all
classes and sections, ana what is there to-
day to make money shrink from business?
Gamblers have made the most of the
furry caused by excessive gambling
only gamblers panic, and one that could
and should be confined to speculative cir
Giles without seriously affecting the legiti-
mate business OF our prosperous country.
Let our financial institutions lead, and
promptly lead, in the restoration of conf
dence in business circles, and the monetary
strain must at once give way to revived bust
ness throughout the land.