The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-11
Capital and Trade.

iSiC IL IlOliilIiS NLlCI dIlOluS d lTueT
conception of the healthful condition
of the commercial basis of this country
today than the gradual lowering of the
rate of interest. Rarely, if ever, was
money held so closely as during the
years from 1893 to 1896, inclusive. 1t
remained locked up in fire and burglar
proof vaults, not alone in New York
city, but in every community where a
place of safe deposit existed. The rea-
son assigned was lack of confidence
and this is an overpowering reason
when the eXpediency of a man parting
with his monetary possessions is in
VOWED. The lessons drawn from this
boarding process were twofold. The
first and most important was that
which taught the borrower that to the
end that every interest shall be con-
served and protected there must exist
a general commercial standard, the
outgrowth of centuries of accumulated
wisdom, against which individual theo-
ries and conceits can not prevail. The
! second lesson, almost as important as
the first, was that which taught the
capitalist that there is a mighty diff
ference between permitting money and
| lands to lie fallow. The lands accum-
ulate strength under the process and
| give forth more abundantly in the form
| of harvest after period of rest; but the
money, when it comes to be turned
over, is worth no more when it
escapes from its Imprisonment than it
was before the key of the vault was
turned upon it, 8 Furthermore. the fact
was realized that natural conditions
sometimes usurp the realm of the arti-
fetal and operate in the direction of
adjustment for the general good.
Such has been the experience Of the
past five years. When money in this
country began to creep into it's covert
the period was one following directly
upon a season of great production of
the soil. The wheat harvest of 1892
was the most prolific in the history of
the United States, amounting to the
| enormous aggregate of Gil 100000 BUSH
els. a volume which is likely to be ex-
| ceeded only by the yield of the present
| crop year. But from that time onward
the shrinkage in the production of this
cereal was notable. In 1928 the VOL
ume diminished to SIS 949, 900 bushels;
in 1S93-94, to 500, 1872 900; in 1S94-95, there
was an increase to $50, 267 600 bushels;
in 1886, the volume reached 467, 1O3,-
900, and in 1862, the yield fell to 427,-
1000 bushels, to be followed in 1897
by the great crop of $50, 149, 600 bushels,
and in 1S9S-99, with what promises to
| be the largest wheat crop in the his
| tory of the country, variously esti-
mated at from 100000 to 700, 600, 900
| bushels
simultaneously with this vast pro-
duction of wheat we discover that a
plethora of capital exists; and we have
the declaration made from some of the
highest sources that the days of per
cent interest have departed, only to be
realized at periods of trouble when
normal conditions are disturbed. In all
directions is heard the complaint Of
| capitalists that there Is SO great a.
plentitude of money af1oat that only
by availing themselves of security of
questionable merit can they secure
anything like the rates of interest
which were regarded as compensatory
a few years ago. Some of the choicest
! investments in the form of railroad
bonds yield; only from to 311s per cent
! Meanwhile, rentals have found a-IoWer
! level, and there appears to be a grad
ual settlement upon a per cent In
! terest basis in connection with the
most substantial undertakings of mod
ern day enterprise.
All this means greater activity in
smaller as well as larger communities
and a Investigation in trade of all
branches. This leads to production on
a larger scale. Increased production
can only be sustained through the en-
largement of marketing facilities The
theory of protection has always con-
templated only the supply of needs for
home consumption. The Wilson tariff
bill, during the short existence vouch-
| safed to it, demonstrated the possibil-
| ity of American manufacture for con-
sumption by the world. This COM
| PEELED the modification in the terms of
the Dingley tariff bill, as opposed to
| those contained in the so-called Nc
Kfnley measure, by which manufac-
| lures have been rendered possible at
| cost which enables the United States
| to compete with the world Already
the tide has set in, as demonstrated by
the record of exports for the fiscal year
ending June 30. Meanwhile the rates
on money have kept pace with the
| general Improvement, by gradual de-
clines until every worthy industry finds
| ample supply for every need. Indeed
we already hear, from great monetary
| centers, the additional complaint that
even as yet there is not trade enough
| in progress to absorb the idle money
existing.
The advancing, and indeed the pres
ent duty Of those representing the COM
| merc1al spirit and energy of the col1n
| try Is to secure new markets. 1t is rot
| enough that our manufactures shall
run full time, but 1t is to be desired
that encouragement shall be afforded
for the establishment of new enter
| prises in every direction This is of
interest as well to the banker as the
| trader, for unless the existing plethora.
of money can profitably find it's way
into trade, the business of the banker
cannot be successfully conducted. The
existing period is likewise one in which
all men may properly be reminded Of
the fact that opportunities are present
which may profitably be avaiIed OF
and that it is no season in which TO
harbor the spirit Of discomfort.
The Minnesota Regiments.
1t is not unnatural that discomfort
should exist among volunteers as a re-
suit of the distribution of troops bv
the orders of the war department.. It
is commendable. on the part Of the men