Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1903-05-04
THE NEW YORK SUN SAYS THE FINAN-
CIAL SITUATION Is UNSATISFACTORY
Comments OH the Article by William Jennings
Bryan. Why Not Satisfy This Need by the
Coinage of Silver Rather Than by the Is
sues of Paper Promises to Pay!

The New York Sun of March 0 contains
an article on the financial situation writ
ten by Daniel +. Kellogg, admitting all
that has been said in regard to the
scarcity Of money. He points out that
the financial situation is anything but
satisfactory. The following quotations
present the salient points:
"But it would be idle to deny that in a
broader sense the money situation is
causing some serious reflection. Apart
from routine business matters it is the
chief topic If discussion in all the great
banking and commission houses down
town. the query taking this general form:
Have We, as matter Of fact, enough
money with which to conduct the finan-
cial operations Of the country at their
present rate and volume?' Those raising
the question admit and lay great stress
upon the sound and substantial nature OF
all legitimate business corditions-the
vast DEVELOPMENT of the iron and steel
business, the tremendous railway traffic,
the huge purchase of commodities of all
sorts by the once poverty str;t ken dwell
ers on the western p.airies. and the fact,
attested in every way, that, despite all
its great strides, production in our coun-
try has still not kept pace with consump'
ton. But what is troubling these OBJ
servers is what they declare to be the
continual indications that the mere me-
chancal operation OF financing all this
prosperity is becoming difficult, that the
money supply OF the country is, in plain
words, inadequate to the demands made
upon it. They say that no sooner is one
period OF financial stress, owing to tight
money, at an end, and money ates once
more approximate their customary ease,
than one corporation after another so
swoops down upon the money market
with requirements for cash for extensive
improvements, new construction and &C.
Quirements OF various properties at high
prices that the supply of lendable funds
in bankers hands becomes exhausted.
at has been said in answer to all this
that there would be money enough in the
country for all legitimate business if
speculation could be kept quiet. But this
objection is without force. Speculation
cannot be kept quiet. 1t is the natural
complement Of business prosperity, and
so.called legitimate business itself is
largely speculative in its nature. A cir.
culating medium which did not allow and
provide for the needs Of spectators would
be worthless; by which is meant, of
course, that reasonable and not unrea-
sonable provision of the kind is neces-
sary undoubtedly. present circumstances
will strengthen the demand that has re-
Gently arisen for an asset currency sys-
tenn but if it is said that the flood OF
money or OF the paper promises Of banks
such a system will bring, is necessary to
afford proper elasticity to the conduct OF
business affairs in our country, one must
recall the increase in the circulating
medium that has already occurred under
existing laws and wonder at the voracity
Of the demands, which, it appears, this
increase has stimulated and is no longer
able to satisfy. The circulation has in
creased in the last six years almost as
much per capita as in the famous war
time period between 1862 and 1858; and
the volume OF the circulation now is
twice as great as it was then. A change
in the currency system cannot, however,
be effected for a twelve-month at least,
and there are those who hold that recent
developments, instead of emphasizing
the wisdom OF placing the currency on a
bank asset basis, initiate against it,"
1t will be noticed that the SUMS finan-
cial authority raises the question whether
we have money enough. and his argu-
ment is clearly in support Of the negative
side OF the question. 1t will also be
noticed that he regards the circumstances
as strengthening the demand for an asset
currency, and yet it is apparent that he
10 not so sure that it will meet the re-
quirements Of trade. In fact, he closes
his article with suggestion that the Cir
cumstances which he has described may
initiate against an asset currency rather
than emphasize the wisdom OF it.