The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-06-29

World of recent date says:
Savings banks can lind their money
only upon absolutely safe securities.
Absolutely safe securities no longer pay
high rate of interest. Government
bonds at their market price pay only
about 212 per cent TIE best municipal
bonds pay scarcely more. With ple
thora of money in the commercial banks
lie insurance companies aud the like
are able to lend money on mortgage at
about per cent. The Gavings tanks
can pay only what they earn or a little
less.
Tho situation is significant and en-
Tightening. 1t means that instead OF
too little there is actually too much
money in the country-so much so that
money will not let except at very low
rental.
The customary reply is that it Is New
York alone that has all this money.
But the money held in New York be-
longs TO all parts of the country 1t
flows to New York only because there
is some chance to get interest on 1t
here, while there Is none at lone. If
Spokane or Selma had enterprises
prosperous or promising enough to pay
interest on money borrowed to extend
them, the Spokane and Selma bankers
would lend their money at home in
New York is simply the index of he
countrys condition
Yet in politics there is the continued
cry of scarcity of money and a cou-
tinued demand for some sort of infla-
ton.
The facts flatly contradict the politi
cal contention.
There is no denial that the World makes
its contention appear most plausible The
reader should read it again. for never was
absurdity so adrotly hidden or sophistry
so skilfully used to deceive the people.
What does the World mean? The sitila.
ton Is, indeed, Significant" if not enlight-
ening, when cause and effect no LONGER
reckon in the analysis of economical con
ditions The paramount idea in the World S
contention is that money is so abundant
that ut will not let except at a very low
rental. unremunera,ive to the money lend
er--as If the taking Of interest ever added
one iota to the wealth of the country or the
support of the people. 1t dsparagngly be-
walls the fact that absolutely safe securi.
Ties no longer pay high rate of interest,
that government bonds at their market
price pay only about ~ per cent" while
the best municipal bonds pay scarcely more
ms If nature had designed or God decreed
that the holders Of these securities were
emitted TO special favor. that they were
the buiwark OF the Nation wealth creators
instead OF parasites supported by the
people In tact, from the mere takinv az
interest the World expects prosperity to
HOW and permeate the whole Industrial
system. rise in interest rates is the
Iaracea
Instead of too little there is actually tho
much money in the country" declares tne
World so much so that money win not
iel except at a very low rental" But is
Vhe world serious when 1t contends that
'here rs actually too much money" in the
country II it is, it is on the ground that
iessening the amount would raise interest
rates, and yet in the face of this fact IL
sraVeiy informs MS that Spokane and Selma
bankers now send their money to New Yotl;
instead OF lending 1t at home because their
nome enterprises are not prosperous or
promising enough to pay the ahnormally
ioW) interest on money borrowed to extend
then In other words. the World tells us
that spokane and Selma enterprises can nor
a'ioru To borrow money OF their banknrs
because money Is too cheap 20 and that a
rise OF interest rates will make them PROS
PV'uuS - lnat Is the plain English of
the WORD utteranae, absurd aud ridiculous
as 1t is, for ii is but speaking of Spokane
and Selma enterprises as illustrative ~ Tho
general business and industrial stagnation
everywhere prevalent and a congestion of
money as q result In money centers such ae
new YORK, that under normal conditions
should be performing the functions of trode
II the World is really sincere, il wholly
mlslnterprets the cause of conditions n
Timely nortrays hut having no fundamental
P'lnc'pie as basis TO reason from its SUI
pelllelai analysts but makes it ridiculous
Apparently 1t has not grasped the slightest
conception of the truth UNDERLYING This
whole question, that money is congestad
because but few enterprises pay even tho
per cent OF good securities, and that tho
whole range OF prices has fallen TO or helo,,,
The cost OF production. and that money
noarded on a worlds falling market l., a.
sen an Investment which no one hut a
1907 would surrender as long as the de-
cine OF all property continued.
Another fundams ntal truth tha, tho
World has not stumbled upon Is that cbea,,
money does not necessarily mean the cheans
ness OF It's rental, or that lear money n,eans
.ne uearhess ~ its rental. but that the dol
lar dear or cheap according as II b,,ys i,
greater or less quantity OF the ounun,ii,ies
"a general use. What the people want * an
'""s'iai conultlOn mat VIII make mon, y
HISS valuable. which is only saving in an
o'ner way property more valuable DIIt
Nhen the World explains how Spokane AMI
selma enterprises, not now prosusro,,s
enough 10 use money at its present Inv
rental, VIII be stimulated by a higher
tentai, II will be pr1of that the age of mira
eies mas not passed and that those who have
talied heretofore 10 Understand sound ~.
finance have made the mistake of suppos.
ing II Sad its foundation In philosonbv
ra'her TRAN taith. C. u. 0benchaln.
Sherman Daily Register; A London
Times correspondent who had been al.
lowed to remain In Havana, saws Brvan
and his followers. including many ,rro.
spohsibie newspapers, are the ones wbo
cast the American Nation into war. Over
mere the republicans are claiming al, IN.
siory OF II, and even the Dallas News saws
IN, "a, war has saved the republican partv
Ihese ensmies OF Mr.. BRYAN ana demo ;.
raey ought to get together and man orr
= pan OF campaign before It 10 too late.