The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-09-21
THE NEW YORK MONEY SQUEEZE.

| To the Editor Eagle.
At your kind solicitation / give you, for
what they may be worth, some of my
ideas concerning the present monetary
stringency throughout the country, and
especially in New York. Fortunately we
no longer have to argue that such a
stringency exists. While the free silver
coinage act was being considered in con-
gress, the gentlemen from Wall street, and
their immediate friends, who had the ear
of majority in the national legislature.
were loud in protestations that there was
no immediate or pressing demand for
larger circulation. By their influence the
free coinage bill, which would, had
it passed, have thrown, probably,
at least one hundred millions of in
creased circulation into the channels of
trade ere this, was defeated. AS if by the
fiat of fate retributive justice has been
swift in visiting its displeasure upon the
very men whose influence prevented the
passage of that righteous measure, and the
New York banks find themselves today
with reserves far below the legal limit and
forced to send for the secretary of the
treasury to come and consult with them,
to devise means to avert panic at that
point.
What has caused this sudden decline in
deposits in New York? Is it not just pos
sible that the outraged west and south,
whose hundreds and thousands of
banks and bankers have been
carving the bulk of their reserves,
in New York banks have opened their eyes
to the fact that when we were appealing
with one voice to congress to give us relief
from the crushing depression of con-
stricted currency circulation, these finan-
cial moguls were sending their EN- issaries
down to Washington to thwart our efforts?
They succeeded. They perpetuated sys-
TEN by which they could use our funds de-
posted with them, to bolster up Wall
street gamblers and loan upon call at "A to
90 per cent every few days.
May it not be possible that the bankers
of the west and south to considerable eX-
tent, have reasoned that it would be
better to keep their funds nearer
home? When we read in the
dispatches that money is plenty
cago, while it is very close in New York,
as has happened frequently of late. may
we not fairly conclude that reverseS are
being drawn to point nearer home? We
happen to know tha5 this is a fact.
Whether wise or otherwise it is being
done. We are not sure but the policy may
lead to good results. The west and south
need more money. If all the surplus funds
of our banks are kept near home will they
not be more available than if kept 800
miles away? Suppose the 200 or more
banks that are geographically tributary to
Wichita should throw all their surplus re-
serve funds into the banks of Wichita. 1t
would then be the easiest thing in the
world for the banks of Wichita to
rediscount literally for at least |
one hundred of those banks should they be |
in need of it. Suppose these same two
hundred banks should each apply to New |
York tomorrow for a re discount. What |
of them would be accommodate |
ed? We doubt if the number would eX-
coed 10 per cent. The others would be po- |
litely informed that 1.-THE present uncer- |
tain condition of the money market causes |
the directors to hesitate to take more paper |
at this time Shall be glad to accommo- |
date you when matters ease up a little
and between the lines, when you don't |
need it," AT the very moment that these |
courteous refusals are being penned, Mr.. |
Wall street gambler is putting in his call |
paper at the discount window for round |
sums, at one-fOurth of one per cent per |
diem! Suppose all our western banks |
should keep all their reserves in Chicago |
St Louis and Kansas City. Would they |
not be far more acceptable to such of us as
should have occasion to rediScount them in |
New York? Their sympathies are all with |
the growing West. We are their neigh
bors. They know and trust us. They have |
faith in the recuperative power, in the |
pluck and energy, the ability ard integrity |
Of the men of the west for they are part |
Of us. A partial failure of a single crop in
Kansas. a hailstOrm, or even a cyclone in |
one county, doesn't frightem them into
spasms and cause them to fight shy of the
whole state.
So far then as local relief is concerned, | |
am not sure but that it is coming, faster
than we think, by the bringing of our own
money nearer hOme-makingi it more avail
able. and elastic, if you please. than under
the former system of boarding it upon the
Atlantic coast, to do service in demoraliz-
ing the markets of the country.
As to a remedy that would relieve the en-
tire country, |, also, have my views, but
should have to formulate them in another
article as this is already long enough.