The herald., 1896-04-24
Local, Eastern and Foreign
Commercial Dealings
WALL STREET SPECULATION
Two New Banking Laws Now Before
Congress
College Professors Discuss National PInances 5
a. Related to the Tariff and Prevailing
Worldwide Business Depres sion

TVSpECC TOtIuII
OF capital are to be reported favorably
by the house committee. The Brosius
bill permits the organization of national
ranks with a capital of S25,00O in towns
ot $4,000 inhabitants, and the Van
Foorhis bill, which enables the national
banks with a capital of $4,000 in towns
OF not less than 100000 i'll cities of 1000
inhabitants. In an accompanying re-
port Mr.. Van Voorhis Will point
out that under existing law the mini
mum capital stock required for the or
ganization of a national bank is $780,
In some sections of the country there
has been a growing need for bank issues
as well as for other banking accommo-
dations in small towns, in which $50,0Uo
cannot readily be raised for banking
purposes. The inequality in the dis.
tribution of national banks, the report
will say, is one Of the marked features
of our national banking system. In the
eastern and middle states banks are
abundant, and in these sections this
measure will not operate to any con-
siderable extent. But in the western
and southern states there is dearth os
banks in many sections, due, no doubt,
to the lack of capital.-American
Banker.
Prof. Holmes, of the University OF
Virginia, criticising Senator Sherman's
assumption that the lack of sufficient in
come is the source of our financial en-
barrassment, and that this situation is
the result of the new tariff legislation,
says: Senator Sherman has over
looked the enormous importation OF
sugar etc, under the last months oi
the Mckinley bill in anticipation Of the
duties charged by the Wilson -Gorman
till, which has not had time to snow
it's full effect He passes unnoticed the
changed conditions in all countries
since the Barring insolvency QS9o), ana
In this country especially since the
crash of 1893, from which there has been
slight and precarious recovery. He ig-
nores the expenditures of the billion
dollar congress, and the continued e&-
lenses entailed by it on the succeeding
congress. He passes without notice the
extravaganza of public buildings and
the reckless imitation of pensions. He
CisregardS the dissipation of the $l00,-
O00,0 surplus left by President Cleve-
land in the government vaults. which
had become a subject of much consid-
GRAFTON. He forgets that the exhaustion
of the treasury occurred under PreSl-
dent Harrison and that relief was dis
oussed in his cabinet toward the close
ct his administration. 1t was, however,
deemed polite, or good politics, to sad
lie the foreseen evil upon the incoming
administration, and to make the Old
Man of the Sea- jump upon the new Sim
bad's neck, rather than to seat him on
its, own"
Professor Clark. of Columbia college,
IN discussing lflc SAME SuDJeCl, say
Hard times result from W0rld-Wldc
disturbances of the economic system.
The past twenty-five years have been
a period of changes, causing large read
justments in the industry of the world
Vast areas of land have been settled and
have been made accessible by network
of railroads. Manufacturing industries
have grown up; methods of production
have greatly changed, and the changes
have involved great profits, and also
serious wastes. On the whole, the period
has been one of rapidly increasing
wealth; but it has been one of much
disturbance. and it has been impos-
sible for the productive mechanism to
adapt itself rapidly enough to the chang
ing conditions. Inflated values and
what is termed 'overproduction' in GER
tain departments OF business have re-
suited. Men have discounted the fu-
ture on large SCALE counting on large
gains from some source, in period soon
to arrive, and the coming period has,
in the end failed to meet their expecta-
tions. Not to any one specific cause can
the depressions, that seem to be period
ical in the business world, be charged.
Using technical language, one may
name one generic cause of that rhyth-
mcal or alternating movement where
by the world changes from a state Of
apparent prosperity to one of apparent
adversely, and of very real embarrass-
ment and hardship. The movement is
an incident in what it is customary to
call a dynamic condition of industrial
life. 1t is a state of rapid and bene
ficent but irregular progress. 1t calls
for successive rearrangements of indus
try. 1t makes it necessary repeatedly
to change the character of the produc-
ton of large districts 1t involves
'booms' and depressions, and one thing
to be noted is that the so-called boom
deranges the system, and that the de-
preston. with all the suffering that it
entails. has the effect of restoring it to
a normal state"