The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1902-09-19
FNANCIAI.voICANO

/ is putting IL mildly TO say that the
/ interview has created a profound i'm
/ preston, but the impression is not ex-
i actly the kind that was intended The
| evident purpose Of the interview was
/ to frighten tariff reform republicans
/ by the threat Of a panic. but the facts
/ given have startled the country Sec
rotary Shaw shows that even with an
/ unexpected increase OF five hundred
million dollars in the circulation the
/ farmers deposits have to be loaned
over and over again TO furnish a basis
/ for the boosted prosperity. According
| to Mr.. Wellman, Secretary Shaw says:
Let me give you some facts with
out comment You go out TO the farm
ers and ask them how they are getting
on They viii tell you that they were
never before so prosperous They are
out Of debt and have plenty OF money.
Ask them where their money is and
they will tell you II is in the local
banks. Call at the country banks and
inquire into their condition, and their
officers viii tell you they are all right
Money plentiful and reserves above 40
per cent Where is your money! oh,
it is in the banks Of Omaha, AIinneapO-
lis, Kansas City, etc
Next you go TO the bankers in Oma-
ha, Kansas City and Minneapolis. and
they will tell you the same thing. They
are in good shape; reserves IS per
cent Where is your money! In
Chicago Now 90 to Chicago Same
story. Banks all right Reserves 80
per cent But the money is in New
York
Finally, pursuing your inquiries in
New York, you viii find that both de-
posts and loans have been enormous.
he Sc
are only six national banks in New
York that have not been below their
legal reserves since January L You
want to know where this money is2
Well. $3.50 600 900 is loaned by national
banks on the bonds Of industrial cor
pOratiOns. These corporations issued
bonds instead Of stocks because the
national banks can take the former
and can't take the latter. IntTinsically
they are no better than stocks. In
most of them there has been a lot Of
water-curing. Here you see where
$3.50 000. 900 of the cOuntry's surplus
stands against q lot of Undigested. pro
mOtiOn-prOdUced securities The trust
in the same way
That is where We stand It is all
right as long as it is all right But 1
don't want to see anything happen !
don't want to see these industrials be
gin to tOpple over, TO fall against one
another and come down in a heap like
children's play-blocks- And this is one
reason why l am opposed to tariff
revision agitation that might start
things going the wrong way"
What viii the depOsitOrs think Of the
prospect? What will be the natural
effect Of the suggestion that any at
tempt to compel honest business meth
DDS will precipitate a panic and cause
a failure Of the banks2 If the deposi-
tors begin TO draw their money out OF
the local banks and the country banks
begin to reduce their city reserves to a
minimum. Secretary Shaw will be more
to blame than anyone else. If any
democrat had reflected half as seri-
Ously upon the financial standing Of
the banks he would have been de-
nOUnced as an alarmist and accused Of
having a grudge against the banks. but
Secretary Shaw is at the head OF the
treasury department and is both in
close touch and in full sympathy with
the fnancieTs- When he declares that
we are doing business on top of a
financial vOlcanO-a regular Mount
Pelee-his statement must be taken as
a reluctant admission of a condition
This is republican prosperity And
to what will republicans attribute the
precariOUs condition. Does a prOtec-
tive tariff put the country in q posi-
ton where gross injustice and high
handed extOTtiOn must be meekly sub
mitted to as the alternative of a panic2
If so, who can defend a protective
tariff2
Does the trust system render the
people helpless and make them impO-
tent to protest against watered stock
and fictitious capitalization If so.
who can defend the trust SYSTEM
Does the gold standard supply such
an insufficient quantity OF money that
the reserves must be loaned and re-
loaned until our banking institutions
resemble the blocks in a child's play
house? If so. who viii say that we
must accept the gold standard as a
final settlement Of the financial ques-
tion2 If this is the condition of our
banks. who viii advocate an asset cur
rency or say that bank note is better
tina a greenback2
The republican party has all its eggs
in one basket and that basket is
marked prosperity" When that argu-
ment fails, the failure will be com
plete.
Let well enough alone" is the cry.
but Secretary Shaw says that il is not
we'll enough; he shows that the situa-
ton is so perilOus that an agitation for
tariff reform, even though il be un-
successful. would ruin the country
Surely the people cannot much longer
be blind TO the viciousness Ct repub-
IIcan policies or to the URsutstantial
character Of republican prosperity
When reading of the huge net earn
ings' OF the railroads remember that
the farmers and merchants who pay
the freight were caught in the net
Secretary Shaw's action in defending
the water cure" in trust OrganiZa-
lions suggests a reason Why the re-
publieans have dealt so lieniently with
the water cure" in the Philippines
The Houston Post asks If republican
organs ever viii quit slandering AIr.
Bryan. The indications are that they
viii. about the time Philander Knox
busts a trust
Co. Wetmore. Of St Louis. won his
fight in the trans Mississippi congress
and secured a resolution denOUncing
the trusts