New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-09-19
TIRE RELIEF OF BUSINESS.


cent bonds which he proposed to purchase
having offered to him at 1IG 81 or less my =,
quarters of million more IMAM 'hc 1"'
amount. beside about eleven millions hio'e "'
higher rates. The desired effect III the none!
market was produced before the oiiers were
actually made; individuals and INSTITUTIONS
HAVING reserves of money were quick 10 leiiu
tbom as soon as it was certain that the 1 rea>-
ury would have large amount OF oo'uS
otTercd This is not necessarily proof, as some
rc,son that the money thus loaned had p'eh
lacked ND for the purpose OF aifcc1ihS 'he
money market or forcing the purchase OF
bonds Prudent banks and capitalists. wheh
they saw that the supply Of money was liiaoe-
ouote and il was uncertain whether inc lrc"H
urv could or would diSbur>e more IN excess VI
amounts covered by previous proposals. "orc
justified in protecting themselves ny Strene,h-
amino their reserves Their duty to their dc-
no,tors and creditors required at s"ch ''n'c
measures of p,ecaution which became uhneccS'
s,xv whom il was seen that ample reinforce
mentS were coming.
Il * hardly denied that there was maWpnia-
t;on of tho money market in order to secure
higher rates for money and lower prices ior
stocks; there always is whenever opPor,"'''!
ofrors But the conditions which existed, ana
which resulted naturally from the acr'"! i'll
legitimate business and in speculatlon' par'e
u,arly at the West. made the success OIL suon
manipu!aton possible. and w"u'd Pr""".':
have caused great stringcncy III inc "'''NV'
ovon if no spccial means To produce pressure
had been employed by anybody. Possibly IL,
Mr.. (;ould suggests. the extreme ra''S q"''c"
wmld not have been cNactPd from M! DOT
.o,.,,s urlcss lenders had taken fun adVah-
,,oo of tho opportun,y, and such rates prom
H., o,, mid by the weaker borrowers ohlE.
d.. elm, dams NOT alter the fact that tn" actual
outco of money to the West ana "'h """
lcf, thc banks without adequate reserves ''''
IN such condition that prud"nrc required inc"
10 protect themselves. ,.,
II is n particularly blundrring ho''oh 'n''
such seasons Of prC>s,ir" r"'ild not occur W
would be- rendered less troublesome u INV
Government deposited all its surplus ,'''"'
,,i,h L.uis When secretary Fallchlid pm
M, over sixty millions in that way II WIZ I"'
ccivcd by all shrcwd observers 'hat '"'""
,;ons of the least mcritOru,l> sort "h'ail'" 'h'
bcncit rather than l".ima'" 'ra"c VI p'".
duetiye industry. The consequence was 'n''
tho money could not he got back I'M" '"'
| Treasury when il was wanted, ana % consul
| er,ble mart of IL stlll remains on d"po'it' W"
secretary hayin. never been ahl" T." call II
h,c, without creating disturbance. In q ''f
countries where Governments operate 'hr""|"
hanks monetary disturbances are hH n" means
Lose frcoucnt or severe than they are here, h"'
tho dcpcndcnce of the banks ana tho marN'
uuon Government operations is even greater
and more damaging than in the nit"l H'':''''
Hero ALL know that the banks cannot ara" 'h
| Government into difficulty or invoiNc "'
credit hut that it always holds larc" reserve
with which il is able to help trad" i'll times OF
emergency. when the banks have fali'o VI
nrovidc for commercial needs.
| II was wise in the Secretary I" make KNOW" !,
thot his resources for relief could not b" rcii'"
mon again this year. The business OF hanh'r'
and traders of all sorts j. so to ADJUST th"'i
oGa;rs that there shall not he another occasion
70 wish interference Of Government th"r-
NOUS sums of money can he brought miner
from the accumulation Of unemployed mono,
in Europe but not if prices are held so higu
that foreigners will neither purchase prod'ic''
nor securities. The money IN this country
would suffice for all its legitimate business
hit not if millions are to be continually Loaned
for the purpose of helping spectators TO carry
q large part of the crops In expectation ol
higher prices.