The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-04-15
MONEY IN THE BANKS.
IIsuv II II A9sctee ~ the Expansseo
Of Business Throughout the
CeuA sly.

matthew Marshall" in his weekly
Sun Review, has way Of so tangling
up his logic that every little while he
6nds himself compelled TO take back
track on some argument previously ad-
vanced. Once in awhile he tangles him
self up in the same paper. This IS tho
case in his review in recent issue.
Just now the most important question
bearing on the problem of sustaining
the business OF the city, and especially
of the stock market, is the matter OF he
continuance of the withdrawal OK
money by interior banks from heir de-
positsin New York banks. How far will
IL go, how far can it be replaced? We
quote: "The panic OF 1898 was her
aided. and. in great measure, precip-
itated, by the action Of the country
banks in withdrawing from the banks
of this city the money which they had
on deposit with them. This year, too.
similar Withdrawals OF country banks'
deposits preceded the panic we are wit
Messing, though it cannot be said that
they contributed to produce it as the
Withdrawals of 1893 contributed to pro-
duce the panic of that year. Our banks.
our government and the country gen.
orally, owing to our large excess OF
exports for year past, are in far
stronger position than they were in
1898. We are importing gold instead or
exporting it, and both the banks and
the treasury can endure, without in
Jury, far greater silver depletion than
that which they had to endure in 1893.
Consequently we may reasonably ex-
pect that the present panic, though
similar in it's character TO that Of 1893,
will not be extensive, nor produce so
long-continued depression" When.
ever, for any reason, the country be-
gins to draw down its balance in New
| York, all our business is disturbed and
put to loss. 1t does not matter whether
| the Withdrawals are caused by fear OF
a foreign war, or by an expansion Of
business elsewhere, giving profitable
use for money. The result is the sans
to New York. The city business.
whether, commercial, mercantile, in
vestment or speculative, must stand
the shrinkage and obstruction of trade.
In this same paper Matthew MARSHALL"
complains that the withdrawal, by
country banks, Of balances in legal
tenders has compelled our banks to pay
out gold which nobody wishes to
handle, and at the same time make
stock attack upon silver, saying that
the treasury has $4oo. Ooo, 900 of 1t which
no one will handle, and that it is only
the people of the southwest, who use
4 good deal of silver In their business,
and those of the Pacific coast, who use
gold, that believe that large use would
give increased value to silver. Ii his
argument proves anything, 1t is that
metallic money is desired by nobody.
except as a base for more convenient
paper money. II the facts he cites,
! showing how constantly the business
} and the banks Of New York are threat
: ened by Withdrawals of money by
country banks prove anything. it Is
: that the base is not big enough to sus-
tain the growing business OF the coun-
try. While business has been grow
ing, the base OF the currency to carry
it on has been made smaller instead OF
! larger, and with the business OF the
country expanding and finding outlet
through other channels than the port
I OF New York, and thus requiring the
I use of more money at these competing
points. as well as at points OF produc-
I. ton, the banks and the business OF
. New York are having 1t forced upon
l them that there is.not enough money
!. to GO around whenever there Is gen
J eral expansion of trade, or o scare OF
any kind calculated TO lock up money
They will find. too, that the loss will
!, be hardest on The city most dependent
= on great balances belonging TO Other
;, sections, liable to be withdrawn at any
: time without notice. So far as Wal
street is concerned there Is more in this
than In any danger from Spanish guns
and it is danger that, like the poor, W.
always have with us. Metallic none,
will not do for New York or other cities
But il we must have it on base TO
: currency and credit, we must hav
: enough Of il, whether gold or silver, s.
! that the business of this city and tn
, safety of its banks, which must carr.
I. the business cannot be at any tim
> threatened by influences that produc
i concentration Of money where 1t
owned.-N. Y. Financial Record.