The sun., 1901-04-20
PUBLIC BUYING STOCKS.
Danger of Panic Brought on by Wild
Speculation.


Washington, April 10 The danger
that panic might be brought on by
wild speculation in worthless stocks,
which was pointed out in this cores
pondence some days ago, has begun to
worry the Republican leaders, has led
/ the Treasury officials to take steps in
| the direction of conservatism. It is prob
able that a circular will be sent out by
Secretary Gage advising the large west
! ern banks not to ship their money to
| New York quite SO freely, but to retain
Lit, acclimulating surplus at home in
anticipation of crop moving time, when
money may not be so easy to get from
| New York rs it is now.
According to the Treasury, the pub
| lie has been pouring its money like
water into the rat hole of consolida-
tions, which are nearly all capitalized
at nearly double their value, thus leav-
ing legitimate enterprises short of funds
which is difficult to supply from else
where There is plenty Of money in the
Treasury. and if absolutely necessary,
the Secretary could check stringency
| by depositing it with government de-
positories or buying in bonds, but this
he is not willing to do If it can be avoid
ed. as it would cause other complica-
i tions.
This state of things is brought about
by the very prosperity of the country.
which is inducing people to 90 into reck-
less enterprises in order to invest their
earnings. The surplus of the country
has been so large that it has been diff
cult to find legitimate investments, and
i al. 1axv
mense sums into Wall street. Next fall,
when the time for moving the crops
come, the West will need its money AMI
will ask for it. As long as the New
York banks have n surplus in excess of
the 25 per cent required by law they
can supply this demand When this
extra surplus is exhausted they will
have to call in their loans. The result
will be stringency in the money mar
lset. and funds which should properly he
used to move the crops will be in great
demand to bolster falling stock mar
ket.
i The Treasury Department is not Mt
all concerned about ordinary stock job
hing schemes. so far as they affect the
specializing elements only, but no great
crash can take place in Wall street
without having an effect elsewhere. The
financial officers of the government have
been preaching conservatism for some
time. They say there has been large
over capitalization in many of the indus.
Itrial enterprises, and day of reck-
oning is certain when an effort is made
to squeeze the water out of these Sc
curities
There is not the slightest danger of n
commercial panic. Business and agri
culture are prosperous, and the coun-
try is on a firm foundation, but there
is danger of a speculative crash in Wall
street The Treasury is doing what il
can to prevent that speculative panic
having an effect on the commercial
world. hut its efforts should be seconded
by conservative banking associations,
and the newspapers will do the country
In service by sounding a note of warn
ing before it is too late.
How prosperous the country is, few
lpeople realize. The balance of trade.
after reaching figures which astonisl-
ed the world, stood still for time,
and then receeded little, but now has
dumped enormously.
For this part of the fiscal year, with
three months vet to hear from, the
balance in favor of the United States
is over $5O,OO00OO, and at the present
rate the balance for the year will be
nearly. if not quite $500, 100000.
This startling gain is not due to the
cutting off of imports hut TO wonderful
development of the export trade. which
jumped from 1862, ,731,707 for the year
lending March 81. 1896, to $1.4s1. .O2S. ia
for the current twelve months. Il gain
of $61S, POI ,407.
Marriott.