Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-04-16
Warning 1O BANKS
Treasury Department Would
Curb the Prevailing Danger.
Gus Speculative Craze.
Money Panic May Follow Heavy
Withdrawals From Regular
Trade Channels.
Lack Of Cash May Work Detri.
ment TO Agricultural and
Other Interests.


president, and the influence of the
treasury department is being exerted
more and more to induce The New York
banks TO act in a. more conservative
manner. Treasury people ;alked with
say that While there is not the shadow
of a doubt in regard To the general
commercial prosperity of the country,
there is cause for alarm in the condi-
lions manifested in Wall street.
There has been, these officials say,
perfect mania for the organization of
trusts, and the Securities Of these mann
moth corporations have been dealt in
with feverish activity on the stock ex-
chang.
The treasury department i not at all
concerned about ordinary stock jobbine
schemes, so far as they affec. the
speculaiing. cement alone Thr financial
officers If the government have been
preaching conservatism for some time.
They say there has been a large over
capitalization in many of the Industrial
enterprises, and a day of reckoning Is
certain when an effort is made to-
squeeze the water out of these sccuri-
tics.
The thing which is troubling the
treasury officials is not the fact that
there has been frantic speculation in
Wall street but rather the fact that
monsy which belongs 10 legitimate COM
mercial enterprises has been diverted
into the avenues of speculation, This
money must get back into The ordinary
schaniisis somehow aud a great Gear is
expressed by the treasury people that
a possible panic on Wall street may have
a serious effect upon general business.
One III the most trusted officials Of
the government. in explaining the sit
uation. SAID: The Tribune is doing
wisely in calling attention in its news
and editorial columns TO nnfavorable
financial conditions. which ought To be
corrected before it is too late. Ii will
not do for legitimate business men to
say that they have ncconcern With the
kirs-fying in Wall street, for it is un
fortunately, the fact that the specula-
tive enterprises in Nav York have had
and viii have. scorer or later, d malign
influence upon the general money mark
ct. and this in turn VIII cause distress
The over speculation in Wall street
is brought about BY the remarkable
prosperity 81 the country. Ordinary
business, manufacturing, aud agricul-
6,ural enterprises have been remarkably
successful The middle VEST in particu-
lar has been prosperous, and money
from the banks in the Mississippi Val
ley has heen transferred To banks in
II, l,g
have tssn paying for a great deal OF
these deposits ~ a per cent basis
The surplus o. the country has been
so large that it has been dif'icult@to in
vest i all in legitimate enterprises. AZ
a result the New York banks have put
Immense sums into Wall street. Next
lfall when the tine for moving the crops
comes the ives, will need its money and
| Will ask for it. AZ long as the New
York banks have a surplus In excess 81
tho % per cent required by law they can
! supply this demand. When this extra
surplus is exhausted they will have 70
| call in their loans The result Will be a
stringeney In the money market and
| funds which should properly be used 70
| move the crops VIII be n great demand
1 TO bolster up a falling stock market.
This same thing happened Two years
\ ago said the official and there is ne
reason to believe that events will take
a different course this year. The only
thing which could be done at that tint
to relieve the stringency in the money
4 market was to increase the deposits o.
government money in the nationa
4 banks For doing this Secretary Gag
iwas severely criticised and yet 1t may
iif the s,ringency anticipated shall ar.
rive again this year the secretary vii
have no other course to pursue.
The secretary cannot buy bonds be
cause whenever the prices of other Sc
curities drop government bonds bccom
more valuable. not only for investment
az basis on which to receive the gov
eminent deposits.
Once the government money get
/, into the subtreasury 1t cannot be takel
out again except to pay debts TIL
:. to system Of deposits OF current re
ceipts He may decide to make thos
e deposits in several different cities a
we'll as in New York, but he will hav
to Increase the line of deposits in tn
+ bdIhS ~ many U
supply the demand which the .wester
. and southern states will make 70
. money to move the crops
! The treasury department. is exertin
= Its influence to stop this pouring of goo
!. money into the Wall street rathole, bu
a it is not accomplishing much as We
: The safest thing perhaps is for the larg
. western banks not TO remit quite S
:. freely to New York, but rather to &C
= cumulate an unusual surplus in antic
patton of the crop moving time Whe
money will be in demand by their Gus
: toners, but will not be $40 easy to gs
: out OF the vaults of the New Yor
banks
There is not the slightest danger {
a commercial panic. Business and ayr
e culture are prosperous and the countr
n is on a firm foundation, but there
e danger of a speculative crash in Wa
h street. The treasury is doing what
n can to prevent that speculative pan
e having an effect on the commerce.;
: world, but its efforts should be secont
!. ed by conservative banking association
: and the newspapers will do the counti
y a service by sounding a note Of warnir
It before 1t is too late"
!.
: The postoff1ce at Pilot Grove, Mo-, W;
}. burglarized, the safe blown open ar
I. stamps and money to the amount
7. $500 taken. The robbers escaped, lea'
Il IL.