The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-11-19
ATLANTA Constitution.

| Atlanta Constitution.
The condition of Boston's banks is Great
| ing as much interest as The recent reduc-
| ton OF wages in Nav England below the
Furopean pauper level. 1t appears thai a
! number of savings banks which had in
vested in the stocks of Boston's National
banks. have recently. in view of the de-
| cline of these stocks, proceeded TO unload
the investment. The result has been sucn
that the New York Journal of Commerce
refers to the episode as "Boston's Bank
| Massacres.''
The average price of the stocks of nine
banks in 1880 was lis The average price
in 1898 was 81, which represents a slump
Of 81 points. The journal of Commerce
can not understand and it is inclined to be-
lieye that it is a conspiracy on the part or
the savings banks to drive uumDer OF
the National banks out of business hut
| the truth seems 10 be that the savings
! banks took no action until the STOCKS be-
gan 10 decline IN their hands. This de-
( cline began two years ago, very sig
nificant date, being the date on which
Mr.. Mckinley and the republican PARTY
are presumed to have restored prosperity,
and since that time The savings banks
have been planning to get rid OF the stocks
so as to save 2s large a part of their in
vestment as possible.
The journal OF Commerce is inclined to
ciucise The action oil the savings banks
hut. TO an outsider, they seem to have
been governed by ordinary prudence. The
secret of the whole matter Is that The
nine banks whose stocks have declined
are the weakest of tie Boston banks. and
ffeir stocks have responded to the move
ment OF contraction which has taken place
IN all directions under rhe gold standard
Nhefe there is contraction OF money
There must be contraction OF business,
and where there is a contraction OF trade
ana business, some of the weaker banks
must suffer in consequence.
The result has been felt In banking
circles in the West as well as in the
t'ast and even in New York Two or th.eA
Of the weaker Institutions have turned
over their business TO stronger competitors.
Under the present financial system there
Must be sweeping changes in every bust
ness. This has already made itself appar-
ent in commerce and in productive in
Gl1a.ry, and there it must inevitably make
Itself felt in the banking business. Con
soiidation is The word in prodt utige in
dustry, and it must be the word in banking.
rms doesn't mean loss to the public; it
is simrly the survival of the srong st
The Journal of Commerce says II Is due
o Boston's high financial reputation that
MS matter should be explained. What
70 iIioSt beNullhI Is Luil our contemporary
lails TO see the explanation In the general
trend of business to conform itself % the
narrow margin imposed by the gold stand
Ird The cutting down CT prices means
The cutting down of the money supply in
banking as well as in other business. Tor
a bank of deposit depends on the money
Of It's customers. and not on it's own.
we nave heard great deal about the
new supplies OF gold that have come into
he country. Well. into the country, per-
aps. but not into business. These new
SUPPLIES lie in the treasury or in the yaul n
u the banks, and they might as we'll be in
he bowels of the mountains of the mo1n
or all TIE effect they have ON trade. 1t
curious, though that those who have
lrsed the adoption of the gold standard |
lNuid fail to recognize its most obvious |
eslllts. -