Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-09-16
Some Reasons Given by Business
Men and Bankers to Account
for the Scarcity of Money.
FUNDS GOING WEST TO BUY GRAIN.
Others Charge 1t to General 0ver-Specula-
tiOn and the Reported Failure
of the Crops.
TIE MARKET PINCHED BY IMPORTERS.
Bonds Of Small Towns With the lmpruvsnsnt Fever
FlOstng Around

The stringency in the money market con-
tinues and appears to be general all over the
country. Yesterday there was quite furry
in New York, but local bankers continue to
take hopeful view of the situation, though
there is a strong demand for money and not
enough to supply the calls made.
Bankers are always 10th to talk on fnan-
cial subjects, particularly at time when
confidence is shaken slightly and break
might cause panic. 1t is not hard to get
at in private what they think are the causes
of the present stringency, but under no cir
cumstances will they be publicly
quoted Some hold that the tightness
is the result of over-speculation in all
parts of the country. The spirit is not con-
fined to any particular place, but overrides
the land rough shod. The announcement
of the failure of the crops by the Govern
ment made capitalists more careful, and
they have since held on TO their money
bags These causes W .rking together have
resulted in a scarcity Of the circulating
medium. OF the bankers seen yesterday,
the firm of Robinson Bros. was the most
communicative One of the brothers in an
exhaustive view of the situation, said:
MANY CAUSES CONTRIBUTED.
at is not an easy matter to say what has
produced the present scarcity, but there are
number of causes The New York furry
this morning may have been the result of a
combination of Eastern capitalists
who locked up the funds. A man
worth fortune could easily go to some of
the big Eastern trust companies on Friday
or Saturday, and borrow large amount of
money on stocks and bonds. He doesn't
use it, but locks it up for four or five days.
When the banks open on Monday morning
they haven't the money to loan. 1 am told
that money was bringing per cent in New
York to-day, and that funds were pouring
into the city at lively rate. 1t won't be
long before there will be surfeit and the
rates will fall again. The money then will
have to go back to the various places from
which it came to supply the local business.
zone OF the main causes of the stringency
l think, is the vindictive and partisan leg |
islation of our Congressman on questions of |
grave importance. 1 am Republican, but |
l do not approve of the snap judgment Mr.. |
Mckinley and his co-adjutators are trying |
to take on the importers by shutting down |
on the tariff October l, and compelling them |
to take their goods out of the bonded ware
houses at a moments notice.
CASH NEEDED IN HURRY.
ITO do this l am told would require the
payment Of S2O, OOO, 900 In customs, and they
can't produce the money on such short no.
tice Mr.. Mckinley would punish them |
for pursuing legitimate business which |
is not in violation Of any laws. No one can
blame these importers for filling up their |
bonded warehouses when they anticipate an |
advance IN the tariff.
''I can't see either that the passage of the |
silver bill has helped any one but the |
silver mine owners, If they can realize on |
the advance. 1t certainly hasn't relieved |
the circulation. a man takes bis silver to |
the Treasury and receives in return for it |
silver certificates or other forms of money.
He deposits lit in banks, and the next day |
the bankers meet the sub-Treasurer at the |
Clearing House, and all the money that is
not needed to run the business OF the day is
put into the Treasury again. 1t doesn't get
far-reaching some transactions are in their
effects. The passage of the silver bill here |
stopDed the expectation OF wheat in India |
by putting up the price of Indian silver.
Gas civilization goes higher there is a |
greater demand for credit 1t is debatable |
question whether or not the present cir |
culating medium is sufficient to meet all re-
ouirements of trade There is vast amount
of raw material in the country. The cotton
l.. ! rl 1a F,,, r., Id
in a measure, but in the latter case the price |
has gone up.
CHANGERS WANT GREEEBACKs.
''The planters and farmers always want
the cash for their products, and as soon as
the crops begin to move big lot of money
is tied up. This is one of the numerous
ways in which the circulation is reduced,
and may ior the time being produce
scarcity.
"Another thing have noticed is that al |
most every small town in the land has the
improvement fever. They all want water,
electric lights or something else. They or
panize companies, and expect to see their |
bonds placed without trouble. People have
been encouraged by the low rates of inter-
est, but anyone can see that this thing could
not last forever. There are any number of
bonds on the market in Pittsburg, and you |
can't get takers tor them. Only few days ago |
man from an Ohio bank offered me some |
excellent bonds that 1 could have had at |
bargain. They needed the money and two |
months ago counted these securities as as |
SETS This is only a sample of what is going |
on in the country. Even in that interior |
Ohio town they were hard up.
81 don't think there has been auy infla- |
ton OF values-not in real estate in Pitts |
burg at least The industries are active and |
g, LII. Al =
will be as good business year as the last |
one was With the railroads their gross
earnings have been increasing, but
clining. The volume of business
has been immense, but the operating ex-
penses are larger. The cost of labor, for
example, has gone up, strikes have been
prevalent, and all these things should be
taken into consideration. 1t is hard to tell
what the outcome will be. have been In
business 81 years, and have seen panics drop
out OF clear sky"
PEssIMIsTs AND oPTIMIsTs.
Another banker stated that not less than |
sos 600, 900 are invested in bonds in various |
enterprises in Pittsburg. He didn't know |
who held the money, whether Eastern or |
local people, but he thought that if a con-
siderable block were to be put on the mar
ket now 1t would precipitate q crash.
Colonel W. P. Rend, the Chicago coal |
man. stated that there was no scarcity of |
money in the West, that the stringency was |
confined to the East and principally to New |
York He thought that any business man |
would have no trouble in getting it at good |
security to supply his immediate wants.
At this time, ne added, the money is going |
West every year to commence the move