The Savannah morning news., 1903-03-17
/ TIGHT MONEY MARKET.

The talk of stringency in the money
market is not heard in the smaller
cities. 1t comes from New York. In
deed, outside of that city, there seems
to be money enough for the needs OF
business. Assuming that New York is
the only city that is suffering from a
scarcity of money, the question arises
as to what the scarcity in that city is
due.
The answer that is generally given
to this question is, that New York is
the headquarters for speculation and
for the promoting Of trusts. and that
much of the money of the banks. in
stead of being held for strictly bust
ness undertakings, is loaned to pro-
moters and spectators. We are not in
a position 10 say whether this answer
is correct or not. but it seems to be
based upon reason.
1t was reported that when Mr.. J. P.
Morgan was in Washington last week
he urged the President TO call Con-
gress together for the purpose of pass
ing what was known in the last Con-
gress as the Aldrich bill. II will be
recalled that this bill was introduced
a few weeks before Congress adjourned
and that Senator Aldrich was unable
to get it to vote. 1t provided for de-
posting government money in nation
al banks on security other than gov
eminent bonds. The alleged purpose
of it was TO get into circulation the
many millions of dollars that are lock-
ed up in the treasury pretty much all
the time. Mr.. Morgan insisted. ac-
cording to reports. that the President.
in order to prevent money panic,
should call Congress together to pass
either the Aldrich' bill or some other
bill having the same purpose.
The opposition to the Aldrich bin
was mainly that it provided for de-
parture from a rule that had been
very effective in protecting the gov
eminent from loss. and that if that
rule were set aside the government
would soon have great many millions
in bonds of one kind and another of
questionable value, while much of it's
cash would be in the hands of those
from whom it could not be readily re-
covered without legal proceedings, and
that such proceedings might be the
means of bringing on money panic.
Besides, it was also suspected that
the orginators of the bill the men
who expected to be the real beneficial
ries of it. We're the holders of large
quantities of bonds which they found
unavailable for promoting schemes,
but which, if the bill should become a
law, they could use in getting money
out of the treasury.
The statement is made. and it is
probably true, that a very large per-
centage of the money of the New York
banks is tied UP in underwriting
schemes of the promoters of trusts.
and in speculation. 1t is stated that
within the last five years the none
tary circulation has been increased
100000, 900, of which fully $140, 00O, 900
has been in bank notes. 1t would seem
as if this increase ought to be suf-
hcient for all purposes of legitimate
business. t--
During hard times. when money Is
drawn out of the banks and hidden,
and the banks themselves are slow to
lend money for fear they will not be
able to get it when they want it, those
who are in debt insist upon unlimited
issues of paper money or the free COIN
age of silver. In times when every
thing is booming it is the promoter
the trust underwater who insists upon
imitation. There isn't money enough in
the country to supply his needs. But
imitation, whether ut the request of the
debtor class during hard times or the
promoter class during boom times is
pretty certain to be followed by a f.
nancial panic. Therefore if the Presi-
dent is wise he will hardly call Con-
gress together for the purpose of as
ssting promoters to get public money
on security that has heretofore been
turned down by the government