Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1903-09-08

exercised about where the money is TO
come from Ito move the crops they
fear, in view of the panicky condition
of the stock market, that the New
York banks will have all they can do
to take care of their Wall street Gus
toners. On would think. to hear these
Republican organs playing the same
old tune that the New York bankers
and Wall street furnished every dollar
to pay for each bale of cotton, each
bsshel Of wheat and what corn the
farmers dispose of. Not dollar of
their own money, necessary to move
the crops. is furnished from that
source. The money which is paid to
the farmers for their crops comes from
the Western banks and is the deposits
Of the farmers and the business men
of the West.
During the spring and summer
months the surplus of the Western
banks is kept on deposit with their
correspondents in New York and the
other money centers. and they receive
the going interest on their daily bal
ances. The New York banks loan this
Western money to the Wall street
operators on CALL or short time, on
stock exchange securities. When the
crop-moving time comes the Western
banks begin to draw their balances
from New York to supply the local de-
mand of the crop buyers. That brings
about the annual old chestnut of Wall
street furnishing the money to move
the crops. In fact the Western banks
are only calling for their own money,
not dollar Of which the Wall street
banks can refuse.
In ordinary years this money move
ment makes the rate of interest in
New York advance in the fan, as an
inducement to people who have unem-
ployed funds to loan it on stock Sc
curities and replace the Western mon
ey, and in a few months the flow of
funds is again to the financial centers
through the ordinary channels Of
trade. The farmer selling his grain
and paying his bills to the retail mer-
chant, who pays the wholesalers, and
the latter the manufacturers. When
speculation is rampant, as it has been
this year, the demand for money is
greater, and the recall Of the money
to the West makes it more difficult
for the banks to finance the Wall
street demand. When October arrives
it may therefore lie expected that
money will be dear in New York, and
the spectators will have to pay high
rates. There is more than enough
money to supply all the demands Of
business, but not enough to furnish
the millions tied UP in loans on stock
collateral in Wall street
In former times the Southern and
Western banks were borrowers of
extra funds in New York to reloan to
their customers who were buyers Of
cotton, wheat and other cereals, but
that time has gone, never to return
except to very small extent, and
then only if the New York banks have
more money on hand than they can
use to advantage in loans in their own
locality. So when the pinch comes
and the cry goes up that the New
York banks must have money to
move the crops and the Secretary of
the Treasury is called upon to aid
them, the cry is really for money to
move the Wall street crop of undigest-
ed securities that the trust promoters
have been so assiduously cultivating.
In the stress last fall every dollar that
could be by any Interpretation of the
law be diverted from the United
States treasury was loaned or deposit
ed with the New York banks, which
they have never repaid. The whole
power Of the administration has been
used to aid the stock gamblers, and
the promise is made that more and
even Illegal aid will be extended to
them.
The present trouble in Wall street is
because the New York banks are pre-
pairing for the repayment of the West
ern money they have been using and
are adjusting their loans TO meet the
emergency that they know will later
encompass them. The financial mag
mates of Wall street see that the Uni
ted States treasury his about exhaust
ed all its resources to replenish the
dwindling reserves of the Wall street
bankers, and the overloaded specula-
tors view with apprehension the
shrinkage in value of the paper for
tunes they possess.
The Republican idea that the govern
ment must aid Wall street, and that
the FINANCIAL affairs of the United
States must be run according to the
dictation of the big bankers, is meet
ing its own reward. Unfortunately,
thousands of honest folk will be ruin
ed and the business of the country
disrupted by the partnership Of the
financial and trust magnates with the
Republican administration.