The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-19
THE MEANING OF 1T.
An Object Lesson ON the Money
Question.
Northwestern Miller,

Northwestern Miller.
Let us take the case OF Minneapolis, the
center of the great Northwestern wheat move
ment, the great source of supply of the funds
with which the enormous crop is marketed
year after year. The manager of one of the
largest banks in Minneapolis. within few
days, handed the writer hereof a letter from
the manager Of one of the largest banks in
Canada, which was as follows: Il regret ex-
ceedingly that, owing to the currency dis
turbances in the United States, with posi-
bility of a complete change in the value of
currency itself, l have been Obliged in order
to protect our own reserves, to reduce our
balance with you to a nominal amount. 1
have done so with much regret but am forced
to that position by the fact that our deposits
in the United States have formed large pro-
portion of our cash reserves, and that, in case
of any demand for money from this side of the
line, it would, of course, be necessary for
me to meet such demand in the equivalent
of gold / hope that the present excitement
will work off before any evil has resulted"
The foregoing letter was promptly fol-
lowed by the withdrawal of the Canadian
banks deposit. This letter was evidently a
circular one sent to all the banks in the
kept an account. If the reader is a silver
man, he will probably say: This is a mere
bluff. Let them take their Canadian money.
We can get along without it, But can we?
VIII monsieur kindly indicate where we are
to find the funds with which to replace such
Withdrawals? 1t is estimated that it requires
of Minnesota, North and South Dakota in
Minneapolis, Duluth and country warehouses.
OF this amount fully so per cent say $2S-
100000. comes from outside sources, largely
from Canada. One elevator company alone in
Minneapolis used IS, 0000 600 to handle it's bust
ness last year. Even with the immense sum
named. the bankers are almost always put to it
to find sufficient money .wherewith to satisfy
their customers. This year it is already evil
dent that the silver agitation has driven
away the money which is ordinarily relied
upon to move crops. If the country goes for
free silver. these Withdrawals will undoubt-
eddy be permanent.
We are not discussing politics when we
ask how our crop is to be moved if we make
it impossible for foreign money to come here.
Foreign money is on gold basis and it will
not, and cannot, be exchanged for credit on a
possible silver basis. Even the boy orators
and the women agitators would have COM
mon sense enough to admit the reasonableness
Of this. The silver advocate will tell the
farmer that other money will be found to
take its place. Will he kindly tell us where?
Where, at the present time, can the bankers
of the Northwest call in SIS 0O0, 900 or SIS OO0-
O0o, or even $S000,00O, to help them supply
their customers with funds necessary to han
die this crop? If the silver agitator will an
swer this question satisfactorily he will re-
lieve the anxiety of large class Of people.
Let us follow the simple movement of a
crop. Given sufficient funds, the banks supply
the elevator owners, whose lines cover the
WneaJ-gr0Wlng districts. These, in turn,
pay out their money to the farmer for his
wheat The latter pays the merchant. The
merchant RENTS to the jobber. The jobber
pays his note at the bank. The bank pays
its depositor and reloans to elevator mer-
chant or jObber, and so the peaceful and
proper round of commerce goes each class
receiving its due benefit. each enterprise or
industry its proper stimulus. each debtor
paying his creditor and all profiting accord
ing to their several abilities and deserts.
Comes strange political iuggler on the
portion of the supply of money. while, with
the other, he attempts to reverse the entire
circulation of what remains and revolutionize
its character, substituting fifty-three-cent dol
lars for the money he has driven away 1t
takes no very great ability to foresee the re-
suit of this interference, II encouraged and
persisted in. Without sufficient money to.
accommodate his customers, the banker can
not loan. If the elevator owner cannot Dor
row, he cannot buy. IF he closes his elevator
the farmer cannot sell. Unable to sell his
wheat the farmer cannot pay the merchant
The merchant cannot settle with the jobber
and the jobber cannot meet his note at the
bank. The bank cannot pay its depostor. The
depositor cannot pay his creditors and from
first to last, there is congestion and untold
trouble. The boy orators and the women
agitators will say that this can be easily
averted by getting the foreign money some
where else. Again. at the risk of appearing
persistent, we beg to ask messieur, the orator
and madame, the agitator, where?