New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-18

this whole business the main object for those
from the West and South who fight Tor thls
bill Is to get unlimited paper to lend on ANUS
and farms. Several thousand Millions NANNY
ipvostod in Western and Southern lands at
.boom" prices. battle desperately for escape
from bankruptcy because the lands VIII not
sell at such prices, and yet all the good men
who believe in the future Of the town or city
or comfy will swear with perfect confidence
that the land ought never to fall below It's
nominal price
Th, Carlisle bill would not. on its face, give
National banks chance to help these urgent
patriots. Hence the path Is made easy 1or STATE
banks which politicians Of the Western ana
Southern States can control through State ON
Gals What field for harvest, TO lit tnou-
sands Of farmers and corncr-lot SPECTATORS Ill
each district out OF present risk by helping theli
at the State Banking Department. by ltsei'
this power 10 answer the unlimited demand ior
real estate loans would be an enormous advan-
tagc for the State as against the National Dahks'
and one which presses instantly and would DE
rot at once But the other advantages are
enough A friendly partisan at the State Cap
tol to hold the 30 per cent guarantee fund
where would he deposit it? Treasury vaults, In
the exposed Capitol buildings OF an INFERIOR
State would be n. place for safety. Deposits
in sound banks would be inevitable, but what
banks soundcr than those just established after
investigation, on the personal appeal OF the most
influential partisan friends:
What do good bankers mean when they talk
Of IN elastic currency! One which can cxpahh
as far as anybody wants. DO they ever thlhk
how 1t is to be contracted: Circulation does
not contract itself If it Is sound nobody wants
ii reduced Banking theorists say: Lend Alo'-
1000 on goods in transit from producers To con-
'sumers, and when the producer pays MS notes
the currency will be contracted. Not II the
bank. counting on the $4,000 coming In, lends
it ont to somebody else. But in time OF de-
"crcasing business demands Tor comnercmi
loans will shrink" Exactly. but not demands
for real estate or for speculative loans. Precisely
then. the men who have been stuck with lands
and wheat and cotton at high prices want 10
borrow. contraction means panic for them. ana
bankers who have loaned them much already
are powerfully moved to avert panic as long as
they can.
The National currency is not elastic. because
it cannot be indefinitely increased wherever
there i some temporary demand 10 help specl-
lation II any kind II money il wanted 10
move crops. ii has to 20 from the place where
the crops are wanted. and under our present
system Of Geographic transfers that costs prlc-
tically nothing. but il does not 20 if the crops
are no, wanted there. and that is the precise
trouble The men who want 10 buy wheat and
cotton chcapy and hold il until the world wants
H. cannot get accommodation. The men who
want 10 take real estate and keep it until the
country grows up to their price, cannot get ac-
cunmodatiOn That currency Is inelastc, ana
some people think tina. Is it, highest merit.
In other wonls. II Is safe II means dollar In
gold for every dollar in paper. II means no risk
20 the holder and if any man puts II ou'. he
knows that he has hundred cents on tn"
dollar 10 pay for It's redemption. To get rid ~
that sort of currency is the purpose Of the Dem
ocraric party. which frankly appeals 10 The
bnnkrupis. the jobbcrs and the spectators. ana
proposes 10 give them Democratic Congress
man 10 engineer loan for them az every State
can't