Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-09-14
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATION.
The causes that have lead to the
present stringency in the money market
have provoked much discussion, and
alarmists have seized upon the oppor-
tunity to ventIlate their peculiar notions
and predict dire disaster unless their
pet political hobby is Immediately for
mulated and enacted into law, AS q
matter of fact, the United States was
never in a more prosperous condition
generally than at the present time, or
promised greater returns for labor and
capital when skillfuly and lntelligently
utilized. All through the South and
West one cannot help but notice the
marked activity in trade, commerce,
manufacturing, building, mining ana
every other material enterprise. The
circulating medium of our country is I'M
doubtedIy too small per capita to carry
on successfully such wonderful develop
ments in the periods of greatest activity
without a consequent disturbance and
stringency at the money centeTs of the
country.
The present state of affairs has I'M
doubtedly been brought about through
natural causes and stimulated to
greater or less extent by manipulation
of designing and INSCRIPTIONS men IN
the great stock exchange. AT this sea-
son of the year there is always a brisk
demand for money to move the crops
of the country.
Grain and cotton must be paid for in
cash and the local banks are soon
drained of their ready supply and must
necessarily draw on their correspondents
at the money centerS to supply the de-
mand. This alone always makes money
comparatively scarce and dear at this
season of the year. But in addition to
the money which has been required to
keep up the great developments going on
and to supply the channels of commerce
for the purpose of moving the enormous
crops that are being harvested, we have
an unusual factor in the problem which
we believe is the straw that recently
broke the back of the money market in
New York.
We refer to the tariff legislation and
more particularly to the Mckinley bill,
which will undoubtedly become law.
The great importers, seeing that the
duty was about to be largely increased
on certain classes of goods, ordered, in
addition to their usual supply, enormous
consignments for speculative purposes,
far beyond the present requirements of
their trade or the legitimate demand of
consumers. Now, it has undoubtedly
taken millions of money out of the couu-
try to consummate these great importa
tions and this unusual drain at this par
ticular time OF the year has been an i'm
portant factor in making money scarcer
than usual.
The stockholders on Wall street have
undoubtedly taken advantage of the sit
uation to depress securities and realize
exorbitant rates of interest on their
money. Many remedies are proposed TO
correct the evil. One congressman
would have the national banking oircu-
lation retired and much larger issue Of
treasury notes in its place; another
would have free coinage of all gold and
silver bullion; another would buy up the
outstanding government bonds until the
surplus was practically exhausted, while
another would have a largely increased
ISSUE of greenbacks, so that the circulat-
ing medium of the country would be %
to so per cent. more than it is at the
present time. There is no doubt, how
ever, that when the bulk of our present
crop is moved and the Mckinley bill is
defeated or becomes law so as TO stop
the unusual importation of goods, the
money market will naturally resume its
usual condition, and that there will be
abundant capital for the development of
all legitimate enterprises.
Until then we see no cause for alarm.
The present high rates will naturally at
tract all the money that may be needed,
and the equilibrium will be readily re-
stored.