The Montgomery advertiser., 1903-07-05

renrssentsti i've peopie of the East Most of the New York press is indignant as the assumption of the next Speaker ana may not be SO great as he fondly imag- ines. The New York Sun, for a wonder' is the most conservative Of all the news papers next to Wall Street in us com rnents upon Cannon's radical attitude. Representative Cannon IS one oA 'Use nus. Westerners who were brought UP on % %sus picion of Wall Street He says n IS oairy cial legislation, while the condition ol the rest of the country is well enough 10
 be let alone. Strange to say, one s or ,Is no-financial- measure idea is Senator who has done more anathematizing or Wall Street in his time than any Gozen
 sther of c9SsrssasmeRh Nsysaa Who has Changed his business of mining silver in Nevada tS running dairy farm with dairy iunch | stand In the District of Columbia. m old man Stewart beloved for silver and s>against gold for eight or ten years on stretch in the Senate, his present notions | on the financial question are curiousiy 'h-
 Senator stewart says that if Joe Can non has his way and defeats the AIdriGGn | bill financial cloud burst VIII s.ian resao, When nature killed the silver question several years ago by great increase m the worlds supply of gold. according 10 Senator Stewart. the ingenuity or man a,
 orce set to work to devise ways anu anu means to give employment to all this gold, utilizing 1t to the limit Every ln- 1 dustry that could be conceived was or ganized. trusts were formed and the wa tered stocks of these big organizations
 were fioated. The energy of the trust or ganizers exceeded the energy of the min CTS. and. notwithstanding ehtncreasing | supply of money. 1t has never been able | to keep pace with the demand.
 "A financial crash that may occur at any time,' said Senator Stewart today, in the near future ought to be avoided. | The ruin which follows such a catastro- | phe Is widespread and disastrous to mil | lions of people-innocent people. Finan- | cial crashes always result from violent 1 contractions of the money volume. Every l creditor becomes Heightened and wants ] his money, and wants 1t immediately. The impossibility of meeting so extraor- | dinary demand produces such calami- ties as the country suffered in 1885, 1879 and in 1s9S. The panic of 1887 resulted from the destruction of the national bank that of 1873 from legislation which of paper money and securities which had been created to carry on the war. while that of 1893 was the ultimate result of the destruction of silver as money. and the and financial institutions to reduce the volume of money to gold alone. This ef- fort was accompanied by proclamations from the executive and from the banks
  try was rotten, and that nothing would save 1t but system of financial contrac- tion which would destroy everything but gold money.
 "The misery which the Cleveland ad- ministration and its abettors produced intensified the silver fight. and. without an unlimited expenditure of money. Bryan would have been elected and silver would have been restored. The memorable con- test of 1896 will not soon be forgotten. The expense and excitement of that cam paign form an epoch in the financial his- tory of the United States. teaching the lesson that injudicious and violent tam pering with the currency should never be permitted
 Between 1896 and 1900 nature came to the relief of the Financial institutions of themselves and the people by contracting the volume of the circulating medium to gold alone. Twelve hundred millions of new gold in four years revoluttonized the financial systems of the world and pro- duced rising prices by more than supply Ing the denciency that had been caused by the destruction of one of the money metals.
 The Democratic party mindful only of
 the tremendous vote cast on the silver is-
 sue ine1s96 repeated it's demand for sil- yer. not being aware of the fact that | the output of gold had supplied that de-
 mand: and that the silver issue was tinued
 "Immediately after the election of Mo kinlsy in 1900 new force. came into op-
 eration. To understand that force we must remember a fundamental principle | in economics-that money. Ike every
 v thng else is by the Ia law of
 money in circulation on the one hand
 and all of the, property for sale on the
 other are reciprocally dependent upon
 That being so, every. increase in the | amount of property for sale creates a corresponding increase in the demand for hni rla f.ti i1YH mt of the increased output of gold. the ge- nius of the American people undertook to supply a sufficient amount of property of money. Organizations of trusts creat- ed vast amount of property which had
 not existed previously. and all this prop
 that there are thousands of millions of what J. Pierpopt Morgan calls ''undlgest-
 ed securities" . In fact they have so far volume that there has come a terrible stringency in the money market which is
 squeezing the stock market and the water g financial outburst from Wall Street be-
 fore these stocks can be 'digested
 The question now to be met" said
 Senator Stewart in conclusion, lis, Can
 this condition be checked sufficiently to
 create stability without building a Johns-
 town dam which. when it breaks. will
 destroy all the financial institutions in the
 country? The remedy suggested by Sen
 ator Aldrich is more circulation: This
 remedy would be complete If It dld not
 gravate the danger of d general collapse
 when larger cloud has gathered to
 burst upon the country.
 The remedy of MT. Cannon is to stop
 now and let the dam burst and the flood
 come, and re-establish the business of
 the country on lower and firmer basis.
 If the condition Is such that no help can
 come by pallation and the cancer must
 be cut out. then Cannon Is right. If, on
 the other hand, by squeezing out the wa
 ter gradually and increasing the circula-
 tion a little at a time. so asSnot to create
 an immediate cloudburst the country can
 ultimately be brought to a healthful con
 ditiOn then Aldrich Is right"
 New Regulations.
 Representative Socrates Solomon Smith of the -th Congressional District, will be angry clean through when he learns what the Postof1ce Department intends to do with the rural free delivery service from now on.
 Ever since the days of Machen and his one-time large and growing Congressional coterie Postmaster General Payne has been deeply disturbed by the part which members of the legislative branch of the Government were playing in administra- tion of his Darticular executive DOrtiOu