The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-10-27

been altered by the addition OF $50 goo eco to
the cash in the banks as the result Of the
Governments bond purchases, the relief is
obviously not Of character to u sure
against recurrence Of the phenomenon in
case Of an even moderate expansion in bank
loans All this has put very many ma
tiohal banks III the condi' ion where legally
they cannot loan any more money, and
while they do. nevertheless, accommo-
date their customers to some extent, they
are forced TO do 80 oircumspectly and
TO charge high rates If interest. Mean
time. with money AZ these high rates and al
season when imports of gold 70 pay for
foreign purchases Of our grain and cotton are
natural, exports of gold, due to he pressing
demands of our foreign creditors for pay
ment. are impending. II is said that the
present financial strain 10 partly due to the
harvest season and that ii will probably
ease somewhat after the first Of next
year. All Trustworthy authorities. however,
agree that the westward drain Of money
this fall is not so much to move the
crops" AZ to conduct general Western bust
ness. and may, therefore. no, return as
speedily as expected. Because there has
been no such town site and city lot specula
last agricultural boom. many people have
gained the idea that the Western people
were putting their money in the banks and
delghting themselves alone with the mere
thought of its possession. But the Wee, has
been and is the scene Of as intense business
development and speculative enthusiasm
to-day as ever In its history. In Iowa,
Minnesota and throughout the Northwest.
there has been a notable speculation in farm
lands In Manitoba there has been formed
an immense land company and inning ration
scheme. in which thousands OF people are
interested and which has required millions
Of dollars to carry on. In Texas there has
been a great oil land speculation which.
II is true, is petering out. In all the Western
cities great works of improvement are be-
ing undertaken, and the entire extent of
Western business at the present time is
greater than is dreamed OF by Eastern
people.
Where, then, Is the money 10 come from
for further great bulge in business and
speculative credits' As has been stated.
il is clear enough that the high prices of
our commodities have checked foreign pur-
chases of them. If foreigners would buy
our securities il would help mat,ers. but
they seem disinclined 10 do so. Many
great men Of Affairs look 20 the Transvaal
reefs for an increased gold supply TO work
wonders; but the Boer war has now long
been over and the South African gold out
put is not increasing by leaps and bounds
as was prophesied Years hence NAV
tell different story, though experts
differ about it; but this country wants
money now and what may happen year,
hence is not important. II il not obvious
that whatever assistance is extended to tho
financial situation must como from Con-
gress and assume the shape of some de-
cided enlargement Of the amour, OF money
in circulation A mere revision of the OBJ.
iectionabe features of the Sub-rreasurv
system will not suffice. for, as has been many
times here pointed out. the absorption Of
money into the Treasury has really
amounted TO an insignificant sum during
the year and the Secretary Of the Treasury
has so well managed under existing laws
and by the Use Of one device after ano her
10 get money out of the Treasury vaults
into the banks. that only a comparatively
small balance remains in the Treasury
proper over and above the current liabil-
tiles Of the Government II all the money
now in the Treasury vaults was placed
In the banks and the financing Of the Gov
eminent was conducted wholly by the ma
tional banks of tho country, III" amount
Of sddit onal funds for the use Of the -pecu-
lative and business community would be
barely increased SEQ, 900 900 thereby In
deed, there are those who think tina, the
Secretary of the Treasury may find him
self bothered to meet, without drawing on