The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-12-01

p -
tercsts has been 80 enor-
nous in this country within
the past ten years that Imam
rial authorities fear that too large
proportion of our liquid capital mas been
invested in pernuntnt industries from
Nvllirn it could not he released in an
emergency and where 1t can hardly
prove profitable for years TO come. IN
other words. our Dnancia! system Is
becoming too rigid and inclastic for the
mathematical conditions OF the moment.
The national agricultural. mauufaciu,-
ing. commercial and Industrial assets
generally are enormous, their Intrinsic
value is increasing. while their potential
possibilities ar" unhdundcd. The vast
,rasses OF money collected by the trust
companies are effective for tremen-
uuUs achievements. ana theS must
await their day. while the immediate
eXgencies OF trade ana commerce may
be seriously hanipered through Il short
age in the currency and the difficulty of
procuring loans. or only procuring them
at a ruinous or disadvautagoous inter
est to the small, dependent borrower.
1t is true that the public clamor raised
about the watcred stock of the trusts
Is more cnAous than discriminat ing.
But unfortunately and unqlestlonably
in every crH of general prosperity
watering stock il one OF the common
cXpedients OF increasing capital not
necessarily for dishonest purposes or fof
the eXploitaton of compa! atiVely value
less o. deprecated securities. but
through legitimate channels Of CONNER
cial morality Mistakes viii I've made.
and in financial affairs these are as
liable to be serious as in other trlnsac-
tions involving the principles and pI;tc-
tices OF credit.
The warnings which have been given
ny Presidenl Nanderlip ana NJ. Ridge
ly. comptroller of the currency, axe
those of caution, rather than O.. pre-
moIliti"n Of an impending crisis. Mr..
Nandcrlip thinks thay too large Il por'
tinn of the liquid capita. Of tn" cOlln
Try has b"cn taken from its legitimate
functions ;uid sunk in pcimancnI sccui'
tiles and that hanl; reserves have fallen
lower than they should in The reserve
banks Of the reserve cities. Eut he does
not say or even insinuate that The col
laterals upon Whila these cnormuGS
loans have beer based az" not cuntiNg-
entity valuable foi every cent that has
been lent upon them. What he does
point out is that, with ah anomalous
and archaic currency system! which is
practically unrcsponsire 10 lllr demands
OF periods OF great ruliona! prosperity,
bankers should b" m"rr careful th3E.
they Lave been IN Gerl"tnsS their rr-
serves holoN theii actual reauirencnIs
under ANY ron""Nahle conditions OF
financial Strr.E. II Is very hard for
bankers tu have !uck"l up in their
Vaults large reserves of money which
could be earning larg" profits upon silt
edged securities. Eut until our nation
al hanks are permitted 10 base their
currency upon assets, they are neccS-
sn!ly ahnrMS u!iisr the dangers ana
the disadvantages which such rr-
strictiNc syslrm imposes. Fortune ana
the blessings of III" world await the
statesman who Is Instrumental in
replacing our currency system upon IL
scientific lcuniatiJn, who will. in Il
word. sup'lcrde 'p0liiic:t. money" by
rhp basic eX"hana of modern clviliza-