The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-12-04

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s,erlal Correspondence Intelligencer.
NEW YORK, December 2.-The stock
market is chiefly dominated by none
t1ry conditions, and until these show
more favorable tendency the upward
movement In securities is likely to meet
with considerable difficulty II carried
ont upon any considerable scale. Apart
from this factor the outlook is espec-
nuy favorable, as has been repeatedly
explained III our previous advises. The
chief concern, therefore, is the course
az the money market until after jan
nary |. The advance In the Bank Of
England rate, of course. means that no
rclicf can be expected in that quarter
IN the form Of gold imports; especially
While the Transvaal war shows no sign
Of an approaching end. Considerable
hone has been entertained that the re-
turn Of currency from the interior
would bring the supply of loanable
funds in New York nearer to normal
conditions, but it is not safe to place
too much reliance on these antIclpa-
lions Funds are now returning, but
less freely than expected, the great ac-
uyity Of trade and industry every
where retarding the movement. In
tellgent men are wanting to compre-
bend more fully the causes that lay at
the bottom of the late disturbances in
the money market. and the more they
study the situation the more they In
cline to the conclusion that the chief
adverse influences are implanted in the
laws regulating the national banks.
During the present. year there has been
an extraordinary increase in the cur
repcy and credit wants Of the people.
To say nothing Of the fact that during
the last Ave years Of business depres-
sion the population of the country has
increased some 100000, we have to
face the further facts
% That our productive poulation is
now more fully employed than ever be-
fore.
(g) That the business Of this class OF
consumers Is done almost entirely
through the use of money and not with
checks, which calls for an increase in
the circulating medium proportIoned to
the increase in the volume of business.
ts) That this increase in the current
money wants Of the people is magnihed
by general advance in wages. aver
aging not less than ten per cent for the
current year.
~ That within the same period there
has been general rise in prices of not
less than Is per cent on most of the
great staples of trade.
These recent changes In the business
situation imply an increase in the cir
culation wants of the country very
much larger than is generally imagined.
and yet there is nothing In the national
banking laws that provides scope for
the expansion of the bank currency,
and hence during the past twelve
months of urgent demand for money
the volume OF the bank notes has re-
manned stationary. The pressure Of
this retail demand for currency must be
satisfied at whatever costto other In
terests, and the consequence is that the
supply Of lawful money" gold and
legal tenders, out of which the banking
reserves are compounded. is merciless-
Iy drawn upon. This reduction of the
reserves compels the banks to reduce
their loans and discounts, and In that
way the credits which are transacted
through the use of checks and without
money are smaller and inevitably con-
tracted. 1t is exactly at this point
that the crushing stringency OF late
months has risen, ,and 1t is the fact
that this position is created and en-
forced by innexlble law that clouds the
prospect OF the money market with an
uncertainty more or less paralyzing.
Under a situation like this there is no
way Of escape from a state of chronic
exposure to panic except'through sys-
TEN of bank note issues which will make
1t to the interest OF the banks TO put
out their notes under the pressure Of
the retail demand for money. Under
such conditions the retail wants could
be satisfied without trenchlng upon the
lawful money" reserves; the reserves
Of the metropolitan banks would be
protected against disturbing oscIlla-
lions; the New York banks would at all
times be able to care for the interests
Of their local customers. and the money
market would be saved from the wild
and artificial fluctuations In the state
u credit and in the rate of interest
which have become fixed bane to the
financial markets. It is possible that
while Congress is about to deal with
some Of the more tbeorctIc aspects Of
our money system. It will neglect to
remedy thcse not less serious faults in
the practical working of our banking
and currency arrangements.
Lam in favor of the passage of bill
by Congress which will determine the
gold standard now and forever beyond
any equivocatIon, and also to provide