New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-18
THE C4rsEs or MONETARY PRESSURE.

Tho condition of the money market makes
osnecialv pertinent the questions Of CORE
spcndent who asks whether repeal Oh the
silver pn,cbasc act would not cause contrac-
,;on Of the currency, greater pressure III 'he
market = renewed agitation for free silver
co;,,pe or unlimited state bank Issues ana
serious fisk that advocates OF lnnatloh anu va"
money might triumph. 1t Is OF course '''o,'
stood that the present improvement !" ,"o
money market is MT necessarily la''ihs' '"''
geld is likely to go ont again whenever i''n''
s chcaper. and that the main causes vi pressure
arc still operating.
II is important to realize that these causes
o,c somewhat complicated They are paf'!
roltical partly speculative and partly INDUS
trial. The political causes are "nce' 'a'n's
abo1t the action of Congress ON silver anu 'ne
tariff. doubt whether silver purchases VIII ho.
soon make silver payments lnevnane' u'>'i,.'
of foreign investors and money -iehdorS oh .n''
account. consequent sales OF Securilic>' WIZ
dr,vals of foreign capital, and un"iilihg"csS ~
,oud rs much as usual on stocks OF products
not yet required for consumption ABROAD. incSc
have been brought into full operation D| inc
election of Democratic President ana ION
GROSS and will not he removed until IL Is
definitely known what the new policy IS u oe'
speculative causes spring in part from de-
oroaSo in Weld of cotton, wheat and hog prod-
u,., and FROM foreign unwillingness to al
cameo ~ freely as usual against such products
but still more from the great increase oi GU
ropcv in circulation. which has made borrowing
easy for people who wanted TO get INTO e'S'"''
| one,ations though it is 10 longer 50 cas-! h'"'
when their hopes of selling ut big proii'S d'o
Indefinitely deferred. and meanwhile prices ca''
he sustained only by further heavy pnrchaSe'.
| Thc craze for moncpolicS and corners III al
hr,rchos Of business has created gigantic COM
h.nafions. which were able TO borrow none!
| r.. eIv for q time. but now they are coming 10
criof ore after another with severe losses
Events like the fall of the coa combination
and the brea, in whiskey and sugar ana lead
socks increase the distrust OF foreign ieiu-
| crs and also increase the necessities OF many
| domestic borrowers. No doubt some OF 'hc
recent failures in Philadelphia. which nave
cans d nsiderable strngency there ana move
ment of money from this centre thlther' were
the result of the Reading collapse and the iaii'
ure of the monopoly in coal
Tho industrial causes of pressure spring 1foh
tbo extraordinary prosperity OF the working
millions in past years and their remarkapie
exnansion in purchases. Habits formed during
many wears of steadily increasing prosperity IL
net easily alter. although the demand Tor labol
no l,nger increases rapidly. as it has done lo
v,a,s Greater purchases by the millions have
~, anded imports, the increase at New-l orr
oIano in February being SS,00O,000, ever
while cyports Of domestic products are reduced
- in
classos No financial genius can pfcVeh' 3'''
, exp rts under such circumstances, unless spec
ulations here can be broken up ana price
lowered enough To induce larger exports o
! nrcducts. or unless foreign investors and lend
crs acouiIe such confidence IN the finahcia
f,tr,c Of the country as to return the million
,bov have Withdrawn. 4 settlement OF IN
s;lvor ouostion seems to be essential to
restoration of confidence. Closer money maI
: kets seem to be the only form OF compul'io
o which a, present can bring spcculatons to
i | halt. .
c Storage of silver purchases. if 1t cpuld D
d sec m1li,bed. would make affirmative lcgiSla
4 ton. rrobably over the President S Veto nect'
!. sa,y 10 bring about free coinage or dceiada
y ton OF the currency. Then the struggle woul
com~c ri men t. take sides, and if the tcndcnci'
: +, evil could be successfully resisted with
:, Democratic President and Congress in powc
:, y ,cvival of confidence would be Justified.
4 not little experience OF bad money ""ul
{ ,aridlv educate tho people to insist upon som
r hing bet or. Meanwhile. il would do no ma
if the paper circulation should not be expand.
y for a time since the probable result would
1t to check speculative mbinationS and a'temp
J. 20 establish monopolics, which arc an impo
liant cause Of existing troubles. Since no legl
lation can now be expected until the next sc
r. sion Of Congress it rests with the new ADM
N ;st atign TO show how far it can remove di,tr'i
n IS to the future of the currency ard Il
l. finances.