The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1902-09-05
FINANCIAL voLcANo-

]
is putting it mildly to say that the
interview has created a profound i'm
preston, but the impression is not ex-
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 basis
for the bOasted prosperity. According
to Mr.. Wellman. Secretary Shaw says
Let me give you some facts with
out comment You 90 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 viii tell you it is in the local
banks. Call at the country banks and
inquire into their condition. and their
officers wiz tell you they are all right
Money plentiful and reserves above 40
per cent Where is your money!? oh.
il is in the banks Of Omaha, 8IinneapO-
lis, Kansas City. etc
Next you 90 TO the bankers in Oma-
ha, Kansas City and Minneapolis. and
they will tell you the same thing They
are in good shape; reserves 80 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
The money is not in the banks. There
are only six national banks in New
York that have not been below their
legal reserves since January I. You
want to know where this money is2
Well, S450.OOO. 600 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. Intrinsically
they are no better than stocks. In
most Of them there has been a lot Of
water-curing. Here you see where
S45O.000,OOO Of the cOuntry's surplus
stands against a lot Of undigested, pro
mOtiOn-DrOduced securities The trust
companies have put out millions more
In the same way.
That is where we stand Il is all
right as long as it is all right But 1
don't want to see anything happen 1
don't want to see these industrials be
gin to topple over, TO fall against one
another and come down in a heap like
chiIdren's play-bIocks- And this is one
reason why 1 am opposed to a tariff
revision agitation that might start
things going the wrong way
What will the depOsitOrs think Of the
prospect? What viii be the natural
~-E
tempt to compel honest business meth
DDS viii 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 financiers. When he declares that
we are doing business on top of a
financial vOlcanO-a regular Mount
Pelee-his statement must be taken as
that he would have gladly concealed.
This is republican prosperity And
to what viii republicans attribute the
precariOus condition. Does q prOtec-
tive tarin put the country in a posi-
ton where gross injustice and high
handed extOrtiOn 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 q
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 a bank note is better
tha 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
well enough; he shows that the situa-
ton is so perilous that an agitation for
tariff reform. even though il be IN
successful, would ruin the country.
Surely the people cannot much longer
be blind to the viciOusness Ct repub-
lBsan policies or 10 the unsubstantial
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 OTganiZa-
tons suggests a reason why the re-
pubIicans have dealt so Ieniently with
the water cure" in the Philippines
The Houston Post asks IL republican
organs ever viii quit slandering Mr..
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 s-Mississippi congress
and secured a resolution denOuncing
the trusts