The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-05-10
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FLYING DANGER SIGNALS.

other the voice of the conservative
element is going up in caution against
the wild and unreasonable spirit OF
speculation with which the people
seem to have become possessed. The
president himself has begun, in his
speeches throughout the cities he is
visiting, to caution the people against
the dangers of transportation. OF
course, he knows that he cannot stop
or even check the speculation going
on in Wall street, but by his advice
and counsel is seeking to prepare the
prudent, legitimate business men to
prepare for the crash which so many
are predicting as the inevitable result
OF the craze for sudden richness which
has taken possession of the country.
The treasury officials are adding their
voice to that of the executive and
seeking to keep the public out of the
trap which they think the spectators
are laying for them. Washington
dispatches credit these officials with
caring little how the men in the whirl
will come out, or how Wall street may
fare, but they are disturbed over the
results that will follow a crash on
that street, knowing that it will be
followed by d stringency in money all
over the land and result in distress
to legitimate business enterprises.
Secretary Gage is one of those who
is seeing what the future threatens
and is seeking to avoid disas-
ter so far as it lies in his pow
er. With this object in view
he is going ahead and buying for the
account of the sinking fund, when
ever offers are made to the govern
ment at what he considers a reason
able price, all the bonds he can Sc
cure. so far the purchases made
amount to something over 1000, 600.
All this money has gone into the open
markets, but it has been in small lots
because the offerings have not been
large. 1t is expected, however, that
soon the offerings will be such as to
make it next to impossible for the
secretary to meet the demands for
money that will be made upon the
treasury and do so under the law, in
case the expected slump in Wall
street eventuates.
The banks of New York are begin
ming to realize the danger and are
advancing the rate on call money
until it now has reached 10 per cent,
In addition some of the banks are in.
a new system with refer
to the accepting Of c~ollaterals
for loans. Deposits to meet margins
must be increased and what was con-
sidered amply sufficient a week ago
is no longer deemed sufficient to
meet a market which is going up by
jumps and bounds. The banks are
finding that it is a difficult matter to
calculate conservatively the value of
collaterals offered as security, as it
is almost impossible to fix a reason
able and safe basis upon which to es-
innate values. Imitation cannot go on
orever and a time must come when
bubble will have to burst. The
advice of the president given to the
people of the nation when he ad,
nressed a gathering Of Virginians
who had assembled to welcome him
he sped across the continent is
sound and wholesome. He said:
What we want to do now is to be
prudent in our prosperity, save while
can, and be strong if the storms
should come, and they do come now
and then. Whatever comes, let us
fortified by the practice of econo-
while we are SO well employed"
On the sans day the vice-presi-
lent, speaking to the Home Market
club of Boston, sounded a warning as
:ollows:
So complete has been the success
II our economic legislation and ad-
that this very success
brings with it a certain element of
LANCER. Since the days of Jeshurun
,ha tendency of prosperity to unsettle
people who benefit by it has been
commonplace of philosophy. No
and no administration of the law
insure prosperity. All that can be
is to make the conditions such
rs to give the best chance for hon.
ssty, business capacity, industry and
Intelligence. This has been done. and
20 triumphant has been the result that
t can only be jeopardized by over
eagerness to discount the future or
in the enjoyment of the
present. No laws can insure good
.ortune, either to the individual or to
ne community, when the n OR the
'ther embarks on a career of specula-
If the business world loses it's
lead, it has lost what legislation can
lot supply. Just exactly as no laws
'an make a farming community pros
Der in time Of drought or flood, so the
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