The Indianapolis journal., 1902-09-16
THE BUSINESS SITUATION.


''The general business situation in the
West is unchanged from what 1t has been
for many weeks, and there is nothing that
suggests that the height of prosperity has
been reached anywhere in this territory
Such Is the final sentence in the financial
from Chicago. In the same sense, II In diff
ferent words. the conditions are told by 9TH
er papers in all the business centers Of the
country. and particularly of the West. 1t
is called boom by some papers, but 1t
is nothing of the kind in the general ac-
ceptance Of the word. 1t Is natural in
crease of trade, due to the fact that the
people Of the West never had so much
in money or its equivalent with which to
purchase. This is particularly the case
with the farmers, and, fortunately for the
country, they are the most of US. Some
surprise Is expressed by railroad officials
and others who handle the products OF the
farm that grain is not being marketed SO
rapidly as usual, but an explanation is
found in the fact. as stated by one writer.
with money" and consequently are in no
hurry to market their crop. That is, the
farmers all over the country have not been
getting credit of the local merchants the
past six months against their growing
crops, and are no longer anxious to pay
off their bills and stop high rate of in
terest.
But. while the conditions are so salts
factory all over the great producing coun-
try, a note of half alarm comes from New
York about a stringency in the money
market. The prosperous times which the
producing West has made for the country,
causing railroads to pay dividends which
paid none for years. thus giving new value
to millions of dollars invested in trans
portation and manufacturing. have caused
values in all such stocks to advance, slim
ulating speculation. This trading has car
ried prices to figures hitherto unknown,
and inviting the borrowing of many mil
lions of dollars by those engaged in such
speculation. SO much money is tied up in
stock investments that there is now a
scarcity in New York. On Saturday call
money was 20 per cent for a season. and
the report Of the banks was not assuring.
In the past the New York financiers have
turned to the government for aid when
they had loaned their funds up to the
limit. To help them out previous secre-
taries of the treasury have purchased
United States bonds, paying high premi-
ums, or have come to their assistance in
other ways. Secretary Shaw has given
them to understand that they must for the
most part care for themselves. He will
advance the interest on their bonds, but will
not purchase them and pay so large a
premium that other banks will throw up
their circulation to make more money by
selling their bonds The small amount OF
money which he proposes to loan will be
given to smaller banks in the country
where the crops are to be moved.
There seems to be no cause for appre-
hension because Of the condition Of the
money market In New York. If the strin-
gency should become so great as to force
decline In the prices Of some stocks
only those would suffer who have failed
| to get the dollars in the other mans pocket
| the banks. presumably, being able to take
| care of themselves.
| And yet there are people who are advo
eating action by Congress which would fiji
the country with distrust and bring to 6
sudden termination the abounding prosper
| ity OF the masses of the people VIII th'
| people listen to them or Will they conclud,
4 IN slet weI enough