St. Paul daily globe., 1896-03-16
MARKETS AND ECONOMICS.

So vast has been the expansion of
corporate activities, sharing power with
the sovereign, either the nation or the
states or both, so intimately do these
activities come in touch with the every
day affairs of every citizen, sensibly or
without exciting consciousness, that
their movements, their successes or
their failures, their capitalization and
the values of their stocks and bonds
become matters of interest to all, and
not alone to those who have invested
their means in them. Responsive to
the demand coming first from inves-
tors, next from students and lastly
from a public gradually realizing the
Importance of the information, there
have come many publications, rang
ing from dailles to monthlies, some of
them coadjutors of jobbers in stocks
and others more mindful of the ethics
of their work.
Among the latter is the Bond Record,
which adds to it's statistical purpose,
indicated by that title, the wider scope
of "a Monthly Journal of Economics"
The current number is replete in its
information. In the Record division Of
Quotations and Statistics" one finds
statement of government finances,
while the bond and stock record covers
governments, bank and railway stocks
and bonds, the group Of industrials
ho
Of the business Of corporations, with
comparisons with former years; the
earnings and notes on the reorganiza-
tions of those which have met bank
ruptcy, are data given in this division.
Here the investor may find all the
information as to capitalization, mar
ket values, earnings while the student
will find ample material for his investi-
cations into the marvellous expansion
of individual into corporate activity.
The industrial group is especially in
structive.
The conjunction of a journal of
economies" with a record Of financial
transactions is a happy and fortunate
one. Sound finance, whether of in
dividuals, corporations or governments,
is only possible when conducted in
obedience to established economic laws,
which are the same for all. No
government or corporation is so great
and powerful that it can defy them,
and no business so insignificant that it
can escape them. The spirit of this
division of the Record is indicated by
the motto on the cover, "Prove all
things" The opening article is by
man who applies the motto vigorously.
Prof. Sumner never accepts improved
assertions. A timely article from his
able pen is that under the caption ''The
Treasury as a Bank of Issue and a
Silver Warehouse" "Can a treasury
float a note circulation in any manner
analogous to the question of bank
of issue?" is the question he asks, and
answers in the negative. The whole
article should be studied by those who
regard the greenback with reverence.
A gold reserve that is not to be used is
of no use. 1t is useless if not needed
to meet redemptions. It's main value
when used is as an Indication that
there is an overissue of paper. Eff
forts to protect the reserve but in
crease the demand for redemption; it
is an admission of impaired credit,
making creditors anxious to realize
"To reinforce the reserve without go
ing on with the necessary remedial
measures is simply to encounter a re-
currence of the same difficulties under
the same conditions" The treasury
differs from a bank Of issue funda-
mentally. 1t has no debts to call in
when it's reserve is impaired. It can
only get gold by borrowing, for the
conditions that impair the reserve stop
gold payments for taxes. The bank
has its loans as a reserve; it's opera
tions are natural, money ebbs and
flows in deposits and loans as demand
rises and falls.
ga General Survey" of the financial
situation is contributed by George
R. Gibson, in which he sees
forces at work, set in motion
by the conditions created by mis-
chievous legislation, which are work.
ing in our favor. The "outlawry" of
silver reacted in starting a hunt for
gold that has resulted in an output of
gold that is third greater than when,
in the fiftieS, gold glut was appre-
hended and its demonetization dis |
cussed. The money markets abroad, |
the accumulations of gold indicate that
the point of saturation is reached, and |
that a reaction is imminent. Albert |
Bushnell Hart discusses Boundary |
Commissions and Controversies" in our
history, and William Griffith continues
his exhaustive investigation of
Anthracite Coal" Mr. Cronise, the |
consulting engineer of the Record, has !
a very complete article on the history
and condition Of the Erie Railway, il |
lustrated as is the article on coal. with |
maps and diagrams. The value of
such publication, both for current
information and for future reference, is
very great.
THE PROPORTIONS REVERSED.
The extension of the civil service re- |
form in the department Of agriculture
has been rivaled only by that in the |
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