New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-02

profitable investments OF NeH'uies' az" o" ."
cline toward making money scarce or prices low
What good has been done by knding all these
prejudices and false notions into renewed act'-
ity by a proposal which naturally ih'ehsiheS
them!
Most practical bankers have learned by thls
time that there Is no prosperity Tor the'r DUST
ness in the prostratlon OF the business Oh 'he
country. The seasons when money IS scarce
and dear. because Of general apprehension VI
actual arrest Of industry, are not seasons Oh
profit for banks, because then safe DorroWerS
are not trying to borrow and the demand Tor ac-
commodations Is curtailed to the utmost. Inc
harvest time for banks IL when business Is so
vigorous and rapidly expanding that ever!poo!
who has money or credits at bank can lena Oh
safe security at good rates. No such STATE oi
things Is possible when the industries ana trade
Of the people are depressed But 1t Is not Dill
more strange that millions OF people fancy
bank gets rich by the distress OF the country
than that many bankers themselves fancy 1t is
good sense to revive agitation about the sound
ness Of the currency.
At all times there are parts OF the country
where the circulating medium Is not abundant.
If there were SjOOO0.0OO.000 Of currency issued
the same sections would have relatively less OF
IL in circulation than Others because they nave
less use for it, and the currency goes where IL
is most wanted and can pay the best returns
Put" men ask with amazement. are not THESE
same sections paying higher rates or interest
than Others?' OF course, but 1t Is not clrcu'
lating, notes of any kind that are needed bur
,o9uabe capital The borrower who pays I'D per
cent does not even want gold or silver or legal
tenders and would very much rather nave
good certified check on the bank where he mas
pa yments to make. He would not keep the cur
rency one hour II he had it and could get all he
could use In that hour If he had satisfactory So
curity on which loanable capital could be Dor
rowed Men are pcrpetualiy imagining that the
scarcity Of capital not otherwise employed, or
capital available for lending. Is in fact scarcity
of currency. On the contrary. man VINO mas
Government bonds to deposit as security could
get the amount needed and pay his debts with
out touching or seeing single dollar in any kind
Of coin or legatender paper. The root or inc
trouble usually Is that in certain localities there
is not enough diversifcaton Of industries 10
give active employment either to loanable cap
ital or currency. so that both go of TO places
where they can be better employed.
No conceivable reform" or change OF the cur
rency. either i'm amount or In character, will keep
currency lying round idle in q spot where 1t has
M freoupnt or profitable use, If 1t can do better
elsewhere. town composed Of farmers. store
keepers with whom the farmers have credits, a
few mechanics and others employed by both,
and bank there or near by through which set
Elements are made. would not use enough cur
rency to make It worth while to keep any there.
Men who have 1t will use it somewhere else
Men who have loanable funds, unless they think
farms cheap enough and profitable enough TO
take mortgages on them, will put their FUNDS
somewhere else, where they can be employed
Were the whole country plastered over six inches
thick with currency or silver or gold. the money
would quickly get out OF such locality into
some other where it could be profitably used.