Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-09-20
THE NEW YORK SITUATION.

Special to the Register.
NEW YORK, September 17.-Wan street
seems to be passing through a somewhat
premature equinoctial gale. Trained OBJ
servers have seen the signs Of it coming
and have prudenty held In their sail but
10 the majority the storm has been uueX-
pected, and they are taken unawares
The elements OF disturbance are few and
simple, but they are not easily controlled
by ordinary trimming tactics. Finance has
encountered foreign obstacles Of a kind to
which there can be 10 affectation OF in
difference. The African question has lost
none of its acuteuess and may, at any
moment, become an element OF serious dis
turbance at the worlds chief money CEN
ter. The semi-revolutionary condition OF
France and the continued agitation OF the
Dreyfus question are factors which impose
more or less restraint at all the monetary
centers of Europe; ana these Joint dangers
appear at a time when our foreign imam
cial relations are surrounded with some
uncertainty 50 that we cannot well esti-
mate the bearings upon our exchanges OF
any adverse happenings across the Attain
tic We cannot be certain that anything
now remains to our credit Of the large bal
ance arising from our extraordinary sur
plus Of exports over imports. on the coa,
trary there are indications that the return
Of our securities has about liquidated that
balance and we have for some time been
closely verging upon the possibility OF an
outflow Of gold 20 Europe
Whilst these external possibilities coz
front u.s., the condition Of the home money
market IS not assuring. The extraordinary
revival OF business has caused a CORE
spending expansion of bank loans and has
at the same time increased the demand
for currency in the retail circulation. win
banking system that indirectly eompeis
the banks 10 augment their stock Of law
fui money in proportion as they extend
their loans. we are brought face Ia face
with an acute scarcity IN the circulating
medium. The universal employment Of he
working classes at rising rates Of wages.
the increased holdings Of cash among
country retailers, and the rapid rise In the
prices Of goods. have CONFORMITY produced
a necessity for an expansion 81 the volume
Of money and this need makes itself felt
at the moment when the banks 81 the IN
terror are drawing their deposits from the
metropolitan banks in order to facilitate
the marketing Of large crops Of cotton and
cereals, Unfortunately. We nave no effect
the money circulation IN order to satisfy
these necessities; ard the result appears
in a reduction OF the cash reserves o. the
New YORK banks 10 close upon the dead
line. at a point about midway ii The
usual fan effiux Of money 10 the agricut-
tural sections.
This is not promising situation. Tn
expeetedy, we are brought to a condition
Of things IN which the national prosperity
threatens 70 be seriously crippled through
the legal restraints upon our banks ard
By the ineiasEiciiy Of our currency arrange
ments. Had our laws relating to note cir
cuiation been such as to admit Of an ex-
pansion Of bank issues proportoned to the
wants Of the crop movement. there need
have been none Of the draining Of this law
ful money reserves OF the metropolitan
banks which Is now in process; and the
compulsory contraction OF loans. and the
stringency in money ard the exhaustion OF
the reserves would have been easily avoid
able At its coming session Congress may
find reason enough in the present situation
for far more thorough measures Of curren-
cy and banking reform than appear TO be