Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-09-17
PEANUT F1NANc1ER1SG.

"s
Secretary Shaw's plan for the relief of
the currency stringency is doubtless the
best he could have adopted in the circum-
| stances, although it is questionable
whether as to one of its two features the
results hoped for will be realized. In
deed, in view of the fact that owing to
the high price of bonds he would hardly
be justified in making bond purchase,
the expedient he hit upon appears to be
about the only one open to him.
He decided to anticipate the payment
Of the October interest which releases
from the treasury $4,000 and increase
on the basis Of Temporary bond securi-
ty the government deposits in the banks,
This latter feature. it was calculated,
would add another s4,00o,o 600 to the circu-
lation. The payment in advance Of the
October interest was plain sailing, but
it appears otherwise as regards increas-
ing the government deposits. It will not
pay the banks to buy the necessary
bonds required as security, and they can
not borrow them at rea sonable rates, it
is stated.
But admitting that this obstacle will
be removed the whole business is mere
makeshift, and affords another striking
commentary upon our inadequate and
antiquated banking and currency system.
Anticipation Of the October interest is a
case CT robbing Peter to pay Paul; for
two weeks hence the market will be short
81, GoO0 600 due it at that time. 1t is a game
of taking the chances OF the stringency's
being over by October. which happily
seems more than probable. AS regards
the temporary bond security scheme. on
the face of it arbitrary contraction is
invited. Then, too, $S0O0,e00 addition to
the currency volume represents a mere
drop in the bucket, considering the de-
mand for money to move the crops and
the currency necessities of the fall trade.
Through no fault of his, but owing to the
system. Mr.. Shaw has been forced to re-
sort to peanut financiering.
And with the recurrence Of conditions
which develop such financiering has come
also recurrence Of talk about the Inn
perative necessity of earnest steps being
taken by Congress to provide per1na-
nent remedy for these spas1ls of the
money market. In truth, some Of the
Republican organs have seized the OPP
portunity to speak for their party regard
ing this matter, and promise that if the
next House is Republican Congress will
address itself seriously AM in good faith
to the problem Of banking and currency
reform. But how often before has the
country been given similar Republican
promises with the result only that the
issue has been juggled with. The truth
is that there never has been and never
will be any serious effort on the part of
the Republican party to strike at the
as respects banking and currency but
tresses that contention. There are
dominating influences and interests in
the party, which force the leaders to
minister to the present idol. The only
hope of permanent relief lies in the
Democrats getting together, and agreeing
upon rational, business, common-sense
up-to-date banking ana currency system.
and enlghtening the masses thereon.
The existing stringency but in,parts re-
newed emphasis to the fact that apart
from its being a winning card, political
ly, the Democrats should, for the sake Of
the country at large, lose no time in
adopting that policy. For while the pros
perity of to-day precludes all danger
of serious consequences from the strin-
gency we have no guarantee that future
pinches may not prove most disastrous,
unless our banking and currency sys-
tenn is radically reformed, and placed on
a basis which Will respond to all COM
mercial and industrial eNigences that may
arise. Nor can we expect to develop to
the fullest of our possibilities, CONNER
cially, industrially, and otherwise until
the reform has been inaugurated, and
thereby the country shall have been as
sured that the uncertainties of the ex-
listing order are things of the past.