Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1898-04-07
THE VOLUME OF MONEY.
How 1t Is Affected by the Expansions
of Business Throughout the
Country.

Matthew Marshall" in his weekly
Sun Review, has a way of so tangling
up his logic that every little while he
finds himself compelled to take back
track on some argument previously adj
vanced. Once in awhile he tangles him
self up in the same paper. This is the
case in his review in a 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 of
money by interior banks from heir de-
| positsin New York banks. How far VIII
| il go, how far can it be replaced? We
quote: 1.-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 1898 contributed to pro-
duce the panic of that year. Our banks,
our government and the country gem
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 of
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 1898.
f1Tr IN h a
pect that the present panic, though
similar in its character to that of 1898,
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 same
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
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 $400,0O0,O00 of il 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 "a large use would
give increased value to silver. If his
argument proves anything, it is that
metallic money is desired by nobody,
except as a base for more convenient
paper money. If 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
Of New York, and thus requiring the
use of more money at these competing
points, as well as at points of produc-
ton, the banks and the business of
New York are having it forced upon
them that there is not enough money
to go around whenever there is gen.
eral expansion of trade, 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 Wall
street is concerned there is more in this
than in any danger from Spanish guns,
and it is danger that, like the poor, we
always have with us. Metallic money
will not do for New York or other cities.
But if we must have it on a base for
currency and credit, we must have
enough of it, whether gold or silver, SO
that the business of this city and the
safety of its banks, which must carry
the business cannot be at any time
threatened by influences that produce
a concentration Of money where it il
owned.-N. Y. Financial Record.