Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-01-24
THE WALL STREET BOOM.

=. .,,ecuesinp the Boom in Business
I'm IFS Monday issue. the New DIX Iiei"'u
saws that in the opinion Of many shIe"u
mon who are watching the rising tide Oh
sn.c,,,otion in Wall street, it indicates
general business boom throughout t"e
country that has come to stay \ 'e'e-
graro from New York, dated YESTERDAY
saws that Saturdays bank statement re-
Aocting as it did the enormous increase !"
o,.oiloblo holdings by the banks or that
ciN, clearly conveys a steady accuIhuia-
to, NJ funds from all quarters. NOT
n.,,hstondinq the exceptional activity IN /
/ III. stock market. as we'll as general lines |
or business. continues the telegram con-
e,dorobla difficulty Is experienced in en-
r1ovino tho surplus holdings of thabahK'
oc odvontage. Then the telegram de-
c,,ros that the low rate for money pre-
vailing. coupled with the easier tendency
of the money market which seems 10
,.osaqe still lower rates i'm theenear fu-
,,,ro Is the main back log to the current
bull movement.
Exactly. Here we have the legl'liia'e
oneration of the present banking anu
o,,rrencv system as explained 10y Score
of-the-Treasury Gage in his last an
nual report Mr.. Gage, after describing
how the currency becomes conses'ed III
the money centres, says:
. "rhe effort of the banks AZ the centres
to increase their loans causes interest 10
Is IAN The fan i'm the rate OF interest
e causes interest and dividend-paying secu-
l. rites TO rise. The rise in securities IN
duccs speculative buying. The specu'a-
, tive BUYER becomes the banks DorroWlhs
- customer. The banker Is thus ehapleu "
"nut out his funds" as he Is apt 10 TERN
r &, though he really does no such thlns
pa H.. keeps his funds. but he swells ms
. dcnosit liability until his funds on han'
H. are made answerable TO the rule OF ont
ld of cash TO four of liabilities, or % pc
he cent. against his deposits.
as The Herald's article quoted from aooV
We also saws that with possible occasions
rs periods of decline, that will not au"'
r the general prosperity, the ooom' II
we s,reyd observers think, win last SON
three years
an Hnt what then? Logically, ano'h'
ISL crash or season of depression. The Ne
york Herald's article and the telegram
which we have given the substance ioru
Mr. Cages statement of the workings
e' our financial system. and the Herald
'c' article amounts practically to an ADM
'ie sion that that system, even for the pu
'"E noses of wall street, cannot be count
OIL ON for more than three years.
u"- II matters not that there are now co
III ditions that tend lestimately to Ike
nan good investment securities up 1t
mains true that all the reasons given l
mes the present New York boom IN stoc
MY and bonds but emphasize the rottehh'
10 of our banking and currency system a
les IFS failure TO meet the demands OF
ana people and the general business OF
non country. Even should the business
luSt the country at large partake OF the Doc
Ie"' that condition. according to the facts
on tho authorities we have cited, could o.
avs Ne temporary. In short. the conclus
WIN 81 this whole matter Is thatsthere can
o. no permanent prosperity until there
WV been a radical change in our banking
~ currency systqm-such change as
~ never be realized until the Democr
are in control Of all branches Of the
eminent