The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1890-12-24
WHY MONEY IS TIGHT.
Ex-coMPTRoLLER TRENHOLM ON
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATION.
Congressional Legislation and the Policy
of the Treasury Brought on the Woes of
the Business World-The Need of Strong
and Well-manaSed Banks.
NEW YORK, December l1.-Willlam
L. Trenholm, who was Comptroller of
the Currency under the Cleveland Ad-
ministration, reviewed the financial
situation in a conversation yesterday
With a reporter of the World.
aThe situation is complex" said he.
"It has been brought about by the
simultaneous elimination of many dis
s tine: tendencies, each due to influences
proper and legitimate enough, perhaps,
within their several spheres, but which,
coming into full play together, produce
financial embarrassment and CONNER
cial distress. Of course, no adequate
ANALYSIS of such a situation can be
made within the compass OF an inter
view, but it may be illustrated oy WnaI
occurs on some line OF transit Where
numbers of persons are hurrylng out
of town after day, s work or pleasure.
It is quite proper for any one 10 go
home. It is legitimate to be IN nprfy
to get there. The thoroughtares eNlSE
for that purpose and no Individual is
in any way responsible, for aayoooy
else: yet from mere concurrence OF
numbers every bridge or ferry IS apt
to become gorged. If al are content
togo slowly the mass passes; II some
are too eager others are Inconvenience
or delayed; if there is a general rush
disaster is inevitable.
Everybody knows that Tor many
wears there has been every autumn a
constantly increasing throng of settle
ments urging their way through the
banks and other liquidating institu-
tions of the country, and in order that
they might all get through some had
to wait; now waiting settlement is
renewal loan or deferred payment.
In ordinary years some settlements
can wait on Others and in time all get
through, but this year the crowd was
too large, /the pressure from Cehlnd
wds too }strong, and. consequently,
assS arasp9ggase~~ho would gladly
spas and many more are still Scut-
fling to get through who cannot.
sAs in the pressure on the bridge, so
: in this pressure to iQuidate, the weak
30 under and even the strong are dis
tressed.
aYou ask why this year the liquida-
tions have been attended with so mucn
trouble. Well, in the first place, there
I seems to be general tendency IN COM
mercial affairs towards a conoltlon
which precipitates panics at Intervals
of about eight or ten years, the exact
time being in each case determined by
special causes. Last year we hao
close squeeze, and we should probably
have escaped through this year II 1t
8 had not been for the speculation started
in the spring and kept alive through
the summer by Congressional legls!a-
ton and the ayowed policy OF the
treasury. The changes in the tariff
seemed to afford safe and legitimate
basis for a speculative importation or
certain foreign goods. The silver pur-
chase Act was intended to enlarge the
volume Of currency. and was expected
z in that way to raise all prices, but es-
3 pecially the prices of agricultural pro
: ducts. Hence inevitably that Act
tended to excite speculation IN those
products, and in metallic silver.
Excessive imports on the one hand,
restricted exports on the other. pro-
,duced transfers of capital abroad, and
Aat extent reduced the supply OF
IS s s.sundS in this country, with
:li 3>ssnrzs1a7se> antumnal settle
ssse he of these settle
by the higher
pricsss II s SE; for securities.
This was the c0noltlon III OTeooeIc
Then came the immense transfer OF
s securities from abroad with a cores
ponding drain upon our loanable funds'
and at a moment Of great strain the
failure of the Barings spread alarm
) among the merchants. Considering
The number and force of the disturbing
causes it must be evident that the
ssstrain upon our people has been won
derfully well sustained, and that cool
courage has done much towards ward
ing off actual panic.
sThe present situation has It's rene
dy at hand. Speculative prices have
been broken down, the crops are COM
ing forward, gold is being imported,
foundations are progressing and the
,ressure should now gradually pass
away. There is nothing apparently
that the Governments or that Congress
can do to help the public now. Either
may very easily make matters worse
by ill-considered efforts. Unfortunate
" the course Of legislation has not
been shaped in accordance with the
natural laws Of governing these mat
ters. When the tariff was under dis
cussion in Congress there appears to
have been no attention gwen TO ltS
probable effect in aggravatlng the regu-
lar autumnal stripgency IN money,
otherwise other dates would have been
fixed for its going into effect. No one,
when the silver purchase law was be-
ing passed through the several stages
Of its enactment seemed to nave at
tempted forecast of its effect n keep
ing back exports.
The immense expenditures of the
: Government poured into the channels
Sof circulation, as the Secretary Of the
Treasury shows, S65,0O0,OO0, or S22, ,l0O,;
600 week, between July and Octo-
ber l, period of the year when 1t was
not vet needed for the annual HQuida-
tons, and therefore when it could be
5 utilized only in speculation. Last year
the treasury was much more helpful
because the Secretary wisely resisted
the early outcry for money and made
his disbursements just when they were
most effective.
at is dangerous thing, any way, for
the business Of this great country to be
dependent upon the conduct OF the
treasury. The proper and only safe or
eanjzation of industry is to Rave
Strong, well managed banks in such
relations to the mercantile community
as to be able to forecast their needs and