The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-01-03
Considers the Conditions
of the Times
BANK DEPOSITS
ARE NOT A SIGN OF A LACK OF
CONFIDENCE
The One Thing Necessary to Univer-
sal Corpulence Is Sound Con-
dition Of Finance
Associated Press Special Wire

Associated Press Special Wire
NEW YORK, Jan. 2.-under the head
ing Secretary Gage Confidently Hope
full" the Times will tomorrow publish
an extended interview with Secretary
Gage. in the course Of which he is quoted
as saying: 1.-The coming of good times
to our country is not now something In
tangible, far off; our good times are
right at hand, dependent merely and
altogether on our willingness to worthily
greet them and keep them.
Throughout the length and breadth
Of our land blessings have been show
cred in bounteousness by 1897. Some Of
US at the opening of this year just ended
presumed to be hopeful. A few of us
even presumed to be confident that 1897
would blaze a pathway for prosperity.
They who were most optimistic were (by
the test of results) still amply conserva-
tive. And the accomplishment of 1897
makes, indeed, a glorious contrast with
the dreary record of wrecking years
preceding.
"The international balance sheet Of the
world was never before so favorable as
now to the United States-never before
approached so favorable a showing for
US. 1t is no more the mere longing Of q
dream that our country shall become
the creditor nation Of the world. That,
actually, 1t is today.
"As against the tremendous purchase
of our commodities, foreigners have sent
us back more of our securities. Ever
sipce the Barring crash over half dozen
years ago, Europe has been continually
and largely unloading upon us her hold
ings of American bonds and stocks.
Careful students of the situation are
persuaded that the limit to such liquida-
ton must by this time be well nigh
reached; but, however this may be, there
certainly is warrant for qualification in
the demonstrated fact that we are not
only able to absorb what Europe forces
back upon US, but that we are able to do
this readily, do 1t without any culver of
embarrassment and while doing it we
are accommodating millionaire cash cred
it's to our account in every quarter of
the globe.
"Some people are, belive, disposed
to be pessimistic because great sums Of
money accumulate in our banks. They
urge this as a sign Of national business
unhealthfulness; merchants and man
facturers, they say, lack confidence; are
unwilling to assume normal shrinka ge
threatening it. This is superficial view.
After years that have been practically
panic times, exceptional elements enter
into the business situation. And the
unparalleled volume Of idle money in
the banks signifies, think, something
very different from what the pessimists
harp upon.
more largely than yet can be appre-
ciated these great totals of bank de-
posts reflect the liquidation Of western
pie have accomplished during the year
past as payers Of debts will, when we
can come fully to comprehend it, seem
fairly to be chapter from the days Of
romance. The good prices for this years
crops went, not to middle men and spec
ulators. Dollar wheat came while
wheat was yet on the farm, and for the
first time in many a harvest the market
profits were the farmers own.
what the western farmer did, what
he is still doing, accounts far beyond
what is yet understood for the money
which piles up in our banks. That mon
ey largely is the crop money for 1897. and
it has done magnificent service in the
extinguishment of liens upon home
steads in every state, in every commun-
ity of our great west And Is this I'M
healthful? Is there any reason for re-
pining in it?
1.-THE west, which has been paying back
to the east millions borrowed years ago
and during some recent times, regarded
as an exceedingly doubtful asset-faces
in 1898 the most inspiring situation
known to its history.
another factor having much to do in
making the large share of funds kept
on deposit, rather than put actively into
use, reflects newly developed prudence
among our people, and the east as we'll as
the west. Since 1893 it has been so fash
ionable to be poor that economy and
caution have become fairly national
characteristic. The man who made
money before 1893 hurried, in nine cases
out of ten, to put what he gained into
quick circulation. Change has been
wrought. The average citizen who has
prospered during 1897 Is inclined to hold
tight for the time, at least, to his sur
plus; it, Is not that he doubts the safety
Of falling into step with the good times;
it is not that he has become drone, a
mere absorber, but appreciative Of re-
cent experience, he chooses for awhile to
wait.
"Our great bank deposits are not a
menace. Tremendous accumulations
show a capacity to extend business lines;
they show that we are not poor, but
financially powerful.
1.-THE country waits now only to have
it certified that sound conditions under
lie national finance. That made clear
show it to be sure, incontrovertible, we
shall witness business prosperity be-
yond parallel-for they who control cap
ital will on such assurance move for
ward promptly and confidently"
~
A Saloon Robbed