Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-09-19

SoNSt
itself felt at the moment when the
banks OF the interior are drawing their
deposits from the metropolitan banks
in order to facilitate the marketing OF
large crops Of cotton and cereals. Un-
fortunately we have no effective re-
source for increasing the amount Of the
money circulation in order to satisfy
these necessities, and the result ap-sl
pears in a reduction OF the cash re-
serves Of the New York banks to close
upon the dead line at point about
midway in the usual fail efflux of
money to the agricultural sections.
This is not a promising situation.
Unexpectedly we are brought to a con-
dition of things in which the national
prosperity threa tens to be seriously
crippled through the legal restraints
upon our banks and by the inelasticity
of our currency arrangements. Had
our laws relating to note circulation
been such as to admit of an expansion
of bank issues proportional TO the
wants Of the crop movement there need
have been none of the draining of the
lawful money reserves of the nletropol-
itan banks which is now in process, and
the compulsory contraction OF loans
and the stringency in money and the
exhaustion of the reserves would have
been easily avoidable. At its coming
session congress may find reason
enough in the present situation for far
more thorough measures OF currency
and banking reform than appear to be
entertained by members claiming to be
leaders in financial reconstruc ton.
What, however, most concerns Wall
street at the moment is lot so much
that we are confronting theoretically
faulty system of finance as that We
stand face to face with a delicate and
difficult financial situation. Two mil
lions of surplus reserve and s to 9 per
cent for call loans at the middle of Sep
TENDER are ugly and disquieting facts.
1 The situation comes so near to dead
lock that there must be some yielding
somewhere in order to avert very I'M
welcome conditions. 1t would be in
dulging frail hope to expect effectual
relief from importations of gold. The
4 situation of the foreign exchanges
hardly suggests such a probability. ~
fall in the prices of securities or cotton
or cereals might so stimulate exports
Las to bring exchange to the gold i'm
porting point, but who would desire to
see gold procured at such cost? And
source until it was too late to be of
i much service. Nor is it possible for the
lsecretary of the treasury to afford any
lhelp to the situation beyond preparing
some $4,000. 900 of interest due on the
first Of October. which, though rela-
4 lively small palliative. would be val
Much, however, may be hoped from the
resourceful expedients of the banks
which We're never stronger or mora eff
Effectively administered than today. The
lfedgling corporations which, pending
the recent extreme ease in money OBJ
tained a certain recognition among
lenders. must expect to take care o.
themselves, and the relief from thai
source to borrowers more entitled te
consideration may prove 10 be quite inn
portant
The situation calls for caution, bui
does not warrant alarm.
The country will not be alarmed By
tlaase signs of the times. though it may
for awhile become more cautious, an
: With good reason. 1t will be noticed
too, that the advocates of currency re
t form, and especially those who advo
cate more elasticity in our system, vii
t find ground for their argument in tn,
present situation.
CONSENT OF THE GOVERNED.
In Sundays Leader is published a let
ter from Mr.. j. w Allfree, of Newton
Which most effectually disposes of tn
cant that has been published concernin
the consent of the governed" in dis
cussing the Philippine situation. Tn
letter is as follows:
Editors Leader: In your editoris
" Icriticising Governor Shaw for not tell
ing an the material facts in what h
: says about the Louisiana purchase, al
Q you not overreach where the governo
le fell short? The Inhabitants referre
,a to in your quotation from ''McAIaster