Willmar tribune., 1899-10-18

WEDNESDAY, OCT. le, 1899.
NOT MONEY ENOUGH.

NOT MONEY ENOUGH.
A great truth cannot be laughed
down. The gold bug organs have for
years ridiculed the theory that the
volume of money had anything to
do with prosperity. 1t was nothing
but the quality that cut any figure.
They demonstrated by niously
constructed tables that there was mon
ey enough, if we only put it on safe
basis-the gold standard. And yet
the gold men today are rejoicing over
the increase in the money volume
caused by the increased production of
gold. Now, if we had enough money
before, what is the use of getting
more? "Ah,' says the gold bug,
"but this is good basic money" Very
we'll, Mr.. Gold Bug; that proves the
correctness of another of our theories.
We have always claimed that the
gold standard furnished too narrow
base for our money system. You
claimed it was large enough before the
increase-that the gold standard made
perfectly good money. It must be
''too awfully, utterly" good now,
Now, Mr.. Gold Bug, you have
proved just what we wanted. In 1896
you claimed that the volume and base
of our money system would be perfect
ly satisfactory, with the supply then
on hand; and now you rejoice over
an increase in both. What is the use
of putting before q horse more feed
than he needs9
The silver forces claimed that nei-
ther the volume nor the base was large
enough. You have proved our case.
But there is more proof that the vol
ume is far too small, even with the
much talked of increase. Whenever
there is any general demand for money
the money market of New York gets
slight, and the government mustcome
to the rescue. This happened in 1883,
when Cleveland came to the relief of
the speculators by depositing an i'm
mense sum of the nations money in
some national banks. The republic-
ans made great deal of political cap
ital out of this, although guilty of the
same thing on larger scale. Harri-
son relieved the situation in 1891 by
redeeming bonds that were not due,
paying from rs to 30 per cent premium
to induce holders to offer them for
payment. And now the Treasury de-
partment once more has to come to the
rescue, as the following clipping from
the Minneapolis Times will show:
Washington, Oct, t,aiSS.H: aiSS..H:Aasss,stant Secretary
Vsnderlip has decided to anticipate the
interest for the entire fiscal year, the period
ending with July l, 1900. The interest due
Nov. will be paid in full without discount,
but if holders of bonds wish to take advan-
tage Of the offer to'ahticipate interest due
at subsequent dates discount at the rate
of two-tenths of one per cent a month will
be exacted.
The amount of interest due from now un-
til the end of the fiscal year is about $780,,
100000. The payment of this interest will,
it is believed, be relief of much consequence
to the money situation, while it will be
saving of large amount to the governme Mt.
The treasury is in position to advance
this interest payment without the least en-
barrassment.
"The treasury is in position to under
take very readily the prepayment of all the
interest during this fiscal year, large as is
that amount" said Assistant Secretary of
the Treasury Vanderlip to-day. 1.-THE cash
balance is an extraordinarily large one, be-
ing now nearly &290, 100000. It was larger
than this year ago, but we were then just
receiving the payments for the 900
war loan. Our cash balance now, however,
is far larger than it has averaged for many
years, and II receipts continue to bear any
thing like 50 favorable q relation to ex-
penditures as they have recently, it promi-
ses to be still larger, instead Of being re-
duced. The total amount of interest due
between now and July Is $25, ,s08,s35. II the
holders of all the bonds should this month
take advantage of the offer for the prepay
ment of interest it would be saving to the
government of $249, ,47S in the rebate which
would be demanded.
Il see no reason why this prepayment of
interest should not meet with approval
from every quarter. From the govern
ment's point of view it is certainly advan-
tageous In view OF the extraordinary cash
balance the government has lying idle in
its vaults; and of the saving which the dis
count will make; while on the other hand 1t
offers to the money markets over $25. .0oO, ,0o0."
" Whenever there is big demand for
money throughout the country the
stock is too small, the wheat buyers
OF the West and the stock speculators
OF the East begin to bid over each
other in rates of interest, and the big
banks reap q golden harvest. Call
money went up to 81 per cent per
month in New York the other day.
AT such rates the wheat buyer must of
course shave of enough Of the price
OF wheat to balance the interest. Who
pays that interest? The farmer, Of
course. 5* # III: 81 4. ..@ :f.f :..,tt
But at such rates the banks cant
AFFORD to let any Of their money lie
idle, and so they 60 so close on their.
reserves that q panic could be started