The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-02-07

the New York banks were $13, 900 900 less
than they we're last Saturday, consequently
the rush OF money to that center has been
| going on a a constantly acccleratng rate.
| The World presents its figures some
what boastfully. The deposits in the as
| ISOLATED banks OF that city amount to more
| than ono-third of the amount said to be
| In circulation in the whole country. but
the figures given by the World do not in
| clude the cash on hand held by the great
savings banks, trust companies State
banks and other repositories not members
OF the clearing house. If an investigation
were made It would be found that at least
one-half the money said to be in circula-
ton in the whole country has been with
drawn from the channels of trade and
business 10 be piled up in that city.
The surplus reserve of more than $751;
100000 represents money that can not be
loaned even In that market. where the rate
is lla to per cent per annum. 1t is dlo
money and represents only fraction OF the
vast hoard that has been withdrawn from
trade and business
The World seems to rest under the i'm
preston that this vast accumulation OF
money in New York is something to boast
OF. 1t says that the reason for the low
rates OF interest in New York is that the
banks there are recognized as absolutely
secure. This, besides being no reason at
al Is an insinuation that the banks in
other cities and other sections are not
recognized as absolutely secure.
me World goes on to say that New Yorl
Is To-Day not only one OF the greatest none,
centers In Christendom but money is
cheaper there than in any other. And ii
arshes from this that Conditions were
never more ripe than today for good
oil ftI
ceiVe that this last and growing congcs-
tlon OF money in New York is the ineyit-
abie note Of the hardest of hard times. If
me congestion had taken place In an era Of
sooi tunes. the result would be the most
terrific squeeze" of business and prop
eitV interests that has ever been known
IN tue history of the world But the
squeeze has already taken place, occur
ring when partially successful attempt
was made to establish the gold standard
IN ms country, and now money is sccu-
mulating In New York because the owners
OF money would rather accept per cen,
Tor 1t In New York than to loan If out 10
business men for and II per cent.
1t would be thoughtful person indeed
VINO would criticize the country banks fol-
scndlng their surplus reserve 10 New Yorb
instead OF loaning 1t out at home. The
Jaw gives them the right to do this. and
.nvs are further impelled to take that
around them. No bank can afford TO loan
money on long time while prices are fall,
ING -whlle money is constantly growing
dtLfer. Before there can be any expansioT
q. p"slpess' prices must begin TO rise anf
sue'e Is no more prospect Of that than Their,
Mas III lsHi. In fact. there is still less
prospect, Tor II Is certain that the renub-
means VIII make no additions 10 our s,ocl,
vi money nor make any changes to pre.
vent the accumulation Of the currency in
| New York City. ~
lherc is one feature about the matter
,hhae y somewhat puzzling Knowing. as
they must lnnw. that the constant dr,ir
VI we currency from the channels Of trade
ahh business TO be sent to New Yorl, is
sure To LlGke hard times harder ;yhv do
me associated banks OF that city continue
| 10 invite accumulatlons? They have nov
", are told by the newspapers, what is
ca'lou the gentlemen bankers contract"
10 pnY out-oi town banks . per cent on de-
posts sent TO the New York banks. There
must be some purpose behind this policy.
put u is not clear 10 us We should he
iol'n 10 believe that these great bankers
VINO affect to have such great interest in
ne prosperity OF the people. nre draining
,he country OF its currency for the pur-
pose OF bringing about another dlrof,,,
financial collapse. They have the mower 70
90 this and all the conditions are ripe for
such scheme but we do not heliave tho
great bankers of New York would knowinrIv
become parties to such programme.
beyond all question, however the drain
OF me currency toward New York can only
result In making times harder in the MAR.
kt's IN which the business men of that
city depend for their trade. To saw that
the result will be only to make hard times
harder is TO take very cheerful ,iew ~
NE matter We trust the associated tanks
.ns msoiVes VIII have an eye for tho nor
n th.att
IN time TO avert fresh calamity. mn ,bat
is the most that we hope for.