The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1890-12-12
Financial PeriIs.

The Wall Street News reports promi-
nent merchant, whose firm is worth 81 ,0OO,-
600, as saying that he could not get its
notes discounted even at ten per cent. In
January, under the new tariff law, the
importers of New York will have to pay
from fifteen to twenty millions of dollars
in duties, in order to get their accumu-
lated goods out of the custom house. In
addition to this, enormous sums will be
required to make January settlements in
other transactions, and there is strong
likelihood of continued strcngcncy and
distress in the money market.
1t is usually during the latter part of
December that Jay Gould, Russell Sage.
Dillon, and one or two others combine to
squeeze the market in order to secure GER
tain stocks they desire, and to make a
round turn of four or five millions in cash.
They borrow all the money the banks will
lend them for Il week or ten days. This
they do through brokers who arc not
known to be acting for them, and the
banks lend the money believing it will
be used in legitimate business and not
for the purpose of cramping the general
trade. But Gould and his associates
lock up this money and commence to ham
mer the market. The banks having little
or no money to lend, can't supply those
who wish to make settlemets, and the
wrcckers are masters OF the situation.
They put prices down as low as their own
interest will permit causing panic which
shakes out all weak holders; and when
prices become as low as they can safely
make them without .precipitating univer-
sal ruin, involving loses to themselves,
they purchase such properties as they
wish to acquire at bottom figures,an then
libcrate the money they have borrowed.
Meantime thousands have been made
bankrupt; ruin has swept many house
holds; hearts are broken and milliOnaireS
and their families as well as smaller deal
crs, become paupers.
Anticipating such possibility, how
ever, and approaching the danger which
may result from even Legitimate demands
for money, the Secretary Of the Treasury
has issued u circular inviting proposals for
.Lo colo rs 6,.a n,;lI;nnc of four nar oont
bonds which, together with the $2l ,OOO,
600 paid out yesterday OH account of PEN
.sions, will foot up something over $780,
100000 that will he put in circulation
within few days.
Jay Gould says money will be plentiful
after the January settlements; but Jay
Gould does not always say what he thinks.
The country needs more money, and
whether the present silver law will ade-
quately supply that need remains a
question. 1t would be double misfor
tune should panic occur and, in conse-
auence of it, Congress be- induced
to pass an unlimited silver coinage act.
The effect Of it would clearly be to give
silver. mining, not only in this country
but elsewhere, an abnormal activity,
attract the surplus silver of the world to
our mints to receive the govern
ment stamp, food the country with the
metal and drive gold entirely from circu-
iation. Wewould thus lose some four or
iiye hundred millions of gold circulation
and have in its place a smaller supply
of inferior CURRENCY since it is manifest
fhat when Tie owners of silver idillion