The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-12-02
Our NATIONAL PROSPERITY.
james ii. DooIey's Reply to MI
V~anLerlip'S Wilmington Speech.

N8ttPf1Ib y HItittHStS sHetth'
From and Address by Mr.. James H.
Dooley, a distinguished Member of
The Richmond a
At this particular time, Mr.. F. a.
Vanderlip, vice-president of the Ma
tional City Bank, has published a very
remarkable address having for its sub
ject the financial condition Of the coun-
try, which has produced a profound
impression Upon the public mind n
materially contributed to the alarm
which precipitated the recent enormous
liquidation.
If Mr.. Vanderilp's statements and the
differences therefrom are accepted as
correct our national banks stand con-
victed of reckless expansion and mis-
management.
He charges that the deposits Of the
national banks, that is, their indebted
ness to the public, have increased since
the beginning of 1899 by the enormous
sum of 81, 800, 600, 900, that this indebted
ness now amounts to 81, 800, 600, 600, while
the legal tenders and gold held by the
banks, which he calls the basis of this
pyramid of Indebtedness, are now only
$50S, 600, 600, against $500, 900, 600 in 1899.
He charges that the national banks
have thus enormously increased their
: Indebtedness, and have at the same
time reduced their basis Of credit.
While this is not true, the language
employed by Mr.. Nanderlip does pre-
sent it TO the public as truth, and he
seems to desire to have it accepted as
truth.
The fact is that the sos. 600, 600 Of cold
and legal tender helG by the banks are
o. G ut pr the basis upon which the
great pyramid of deposits rests for safe
ty. The banks are the largest borrow
ers of money in the world. The deposits
which they hold for the public consti-
tute the bulk of their borrowings.
Let Us now imagine John Smith ap-
plying to a bank for a loan of SO, 90.
The president asks him, "Mr. Smith,
how much have you increased your in
debtedness since 1892" Mr.. Smith re-
plies, $500, O00." We'll, now Mr.. Smith, >
the president asks, chow much have yoU
increased your gold and legal tenders
since 1899, that is to say, the basis OF
our credit" Mr.. Smith would have
to admit that he had not increased his
stock Of gold and legal tenders, but
would explain that he a made, since
1899, 800, 000-invested in bonds and
Lit4 CIldIlOlSt, III IGSdIueu IHdI anu nis
other assets as the basis of his credit
Likewise, while the banks have in
creased their borrowings from the PEG
pie in the shape of deposits and may
not be able to shows an increase ir
their stock of gold and legal tenders
they can and do show an immense in
crease l.. their bills receivable, bonds
and stocks n other assets, which, to-
"ether with the s50S, 600. 900 of gold anC
legal tenders, make up the basis of the
vast pyramid of credits.
If that is not true, and if it is true
that gold and legal tenders are the only
basis of this pyramid of Indebtedness
then the banks are open to the charge
Of having acted with a recklessness
akin to criminality.
Mr.. Vanderlip finds a bear argument
in his statements that our exports o
manufactured goods reached their eli.
max two years ago and have since beer
falling off: that u imports have in
. creased from $500, 00O, 600. in 1898, TO $500.
0OO. 900, in 1902; that lin spite of tina
tremendous balance Of tradew which gov
ernment reports showed in our favor, Z
balance running, as l have said, up K
an average of almost 5000. 600, 600 s. year
We do not seem to have any unusua
comman upon international credits
but We are as a matter of fact a con
slider bile debtor IL the worlds exchang
es. and that now. in the midst OF extra
ordinarily bountiful harvests, and a
the season when a movement Of gold Il
this direction might normally be ex
pected, we are concerned lest a higl
RAJ Of sterling shall lead - sold ex
ports.
Let US examine these statements Sc
, riatim.
FIrst-Is it true that our exports O.
manufactured goods are not increasing
The facts are as follows: For tht
nine months ending September 80, 1900
t our exports of manufactures were 1888,
> 675,243. For same nine months, 1901
/ $3.50. 660.551 For same nine months, 1902
S311, 1902, Al.
It vii be seen that. while it is tru'
our exports Of manufactures fell OF
, from 1900 to 1901. this year they hav'
increased in nine months about SIC, 600,
000. or at the rate Of so. 000, 900 per an
l mum. q pretty healthy increase.
{ Second-It is true our imports wer
/, $500, 000. 900 in 1902, while in 1898 the.
{ were only $500. o00, 900. The yea 1S9
was the first year Of prosperity, sue
ceeding a long period OF depression il
business and strict economy. Our PEG
pie were comparatively poo and wer
i exercising great conservatism IN ex
: p~enditures. Our imports were accord