St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-11
SLACK OF CURRENCY
THE CAUSE ora LARGE PART OF THE
FINANCIAL DISTRESS.
A SUGGESTION BY BELMONT

1
facturers and Used by Work.
men as a Circulating Medium
"A Well. lIerited Roast for
Republicans Who Talk Panic.
Special Correspondence of the Globe
NEW YORK, Aug. Slow far the
congress now assembled at Washington
can or will legislate to improve the
financial condition of the country re-
mains to be seen. Legislation of the
positive kind OH financial matters is
more apt to hinder than to help. BE
| it enacted doesn't create something
from nothing; neither can it make the
bad good. 1t may do away with that
which Injuries. but, when it comes to
legislating confidence INTO community,
that Is another matter. How far the So
called Sherman law has caused the
present stringency in the money mar
ket, and how far the repeal of the pur-
chasing clause of that act will 90 to-
wards restoring confidence, remains to
be seen. If our legislators will act in
the spirit of the famous saying, He
serves his party best who serves his
country best" good will result from the
present extra session. If every one in
| congress acts in the spirit of Republican
politicians in trying to make political
capital out of common miStOrtunes, re-
CARELESS of the general welfare, then
the situation will not be improved.
When Tom Reed, the Republican can
didate for speaker, stated in his accept
ance of the nomination that four months
1 ago the country was in prosperous
| condition, that the mills were running,
the spindles playing, furnaces roaring,
LABOR employed everywhere, he told the
truth in the main; and it is also true
that they are called back to find an eX-
traordinary business depression, dis
trust in all circles, and general de-
mOralization in financial circles. But
when he adds that 1t is "a condition pre-
cipltated by Democratic failure to legis-
late'' his cheek is monumental. He is
endeavoring to make party capital at
the expense of fairness; yet at the same
time his statement is virtual admis-
sion that Republican legislation has
been unwise and defective; and that ali
this hullabaloo about the tariff being
the cause is all bosh. At the time the
present administration came into power
some months must necessarily 'elapse
before a regular session of congress
would be held. Mr.. Cleveland took the
reins of power under the same condi-
tionS that existed when Mr.. Harrison
coming president had nothing to do but
to execute the laws which a Republican
congress and Republican president
had placed upon the statute books, and
the business world today is staring in the
face a condition which is the result of
legislation approved by Republican
president, aided and fastened by an in
discreet. if not malicious, remark of Mr..
HarrlsOn'S secretary of the treasury.
Before President Cleveland had taken
his seat cloud no bigger than a mans
hand was seen in the financial sky, and
when the change in the administration
was effected. that cloud had begun tO
attract public attention, and it has since
grown to such portentiOus size as hearty
to paralvze business affairs. That small
cloud, the beginning OF our financial
troubles. appeared upon the horiznn
immediately following the remark ~
Secretary Foster, made last February
that, although there was S10S. 600 600 of
gold in the United States treasury. there
was imminent danger OF suspension
of gold payments. Then confidence i'm
the financial world began to be shaken.
Then began the scramble for money.
Then began the locking up of funds in
the banks. Then began the stringeucy
| in the money market. Then began the
currency famine. If the mills are not
running, and the furnaces have ceased
their roaring, and the people are un-
| happy, Tom Reed, the thanks of the
| country for such an undesirable state of
| affairs are due to your own party asso-
| ciates for their bad legislation and to
| Secretary Foster for his mischivOus re-
mark.
| For the business world to stand the
| lack of currency so well as it has, shows
that the business of the country was on
a good foundation. OF course, there
have been failures here and there, in
| creasing failures even, but they have
not been of the infectious kind. Many
a man has been and is ''hard up" but
| his business still remains on It's legs.
Your st. Paul business men may think
| that they are surrounded by worse con-
! ditions than are those in other parts of
the country. But they are not. They
may find business in some channels
| dull, and some of them may have to
| hold on by the skin of their teeth pos
| sibly, but if they were to face the con-
| ditions which exist among the business
| men in other parts of the country, pos
sibly in the East. they might draw a
breath of relief and thank their stars
| that they are where they are and as
well off as they are.
1t is a remarkable condition of affairs
| when business must be suspended, not
because there are not plenty of orders
to fill and work to do, but because there
is no money available to meet the de-
mands; because the money which has
| been circulating is locked up. waiting
for the time to come when it may again
venture forth into the channels of activ-
| ity and usefulness. From Buffalo comes
word that owing to the currency fam
| inc the banks of that city have agreed
| to pay out only so much currency as
| may meet pressing needs. and to pay
out none whatever for extraordinary
purposes. In New York city itself
from to 2 per cent premium has been
! paid for currency, while gold has been
circulating more freely than ever at
par. In Philadelphia the demands upon
| New York banks have been ignored,
and the only way the residents of the
| Quaker City have secured currency has
been by paying premium for il to the
! DreXelS. Gold at par and currency at a
premium! Where be the financial
| prophets? Such is the scarcity of cur
rency at all the centers that manufact-
uring establishments all over the East
are bothered to get, or find 1t impossible
TO get, the needed funds even for their
| pay rolls. AT Fall River, Mass, the treas
urers of mills were forced to send men
with barroomS, restaurants, groceries
and other places of business to get
checks cashed so as to get currency of
| small denominations. From that place,
| from Lowell, from Boston, from all over
Massachusetts. from Connecticut and
Rhode Island and the rest of New Eng
land, from Network and Pennsylvania
and New Jersey comes the same news.
And so the story goes, from day to day,
of lack of currency, Of the closing Of
mile and factories, of railroads reduc-
ing expenses, of discharged workmen.
If legislation will help matters, let us
hope that it will be speedy legislation
| before the business world is honeiesslv