The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1903-03-23
rHE FINANCIAL OUTLOOK.

ne = FltNANClRE w LOON.
1t has been frequently stated during
the past year or two that the financial
center nf the world is passing from
London 70 New York British fnan-
ciers, however. do not by any means
admit this; and they bring forward
some very interesting reasons why
New York can not hope to attain the
.ascendency OF London in the world
Of money, so long as the American
system Of banking and currency re
mains in its present crude and inycrt-
ed state, says the Journal
In a recent article on this subject.
Mr. Rosenraad British financial
writer. admits that New FORK Is con-
stantly growing stronger in the money
realm, but points out that the trade
currents of the world can never be
made to flow through New York in
preference to London S, ong as cur
rency conditions in this country re
main so rpdimentary and defective
We are forced to admit there is
much weight in Nj. Rosenraad's obser-
vations. While cur currency system
may not be so grossly defective as he
claims, yet it has many awkward feat
ures. A system by whicn the govern
ment absorbs and ties up currency at
time when it is most needed, and
turns it loose when the demand is less,
can not be called a perfect or even an
efficient one. Tho cry OF Wall street
for more money has called forth no
little caustic comment at the expense
OF that fellow there; yet the plain
truth is. that while this demand for
more currency may be prompted in
part by the desire to float vast blocks
OF new securities, there is really some
thing wrong with our banking and
currency system It lacks elasticity
This really has been overlooked, we
admit, but there is merit in it, never
theless Elasticity at the expense of
stability is indeed a thing greatly to be
avoided Still. it will not do to meas
ure present problems by the standards
OF 30 or even 20 years ago. Granted
that all currency should have intrinsic
value as its basis-and if there is any
proposition in economics which The
Journal has persistently advocated, it
As this proposition-yet 1t is conceiv-
able that the business OF the country
may expand TO such an extent as to
disturb the ability of the government
TO supply a medium of exchange vast
enough TO carry on this business in
the ordinary course of governmental
expenditure. Especially is this true
under an abnormslly high tariff. Such
a tariff causes an unnatural flow of
money into the sub-treasuries and the
constant loss Of bank reserves to these
sub-treasuries may be largely attribut-
ed to this cause.
The failure Of the Addicks bill leaves
us with a somewhat gloomy outlook
for The next few months, at any rate
While we do not apprehend any seri-
Gus panic, and have no patience with
calamity howlers. it is impossible TO
get away from the fact that two re
forms are badly needed: First. cur
rency reform; and second. speculation
roform The financial discomforts OF
today are traceable as much TO the
latter as to the former sources of
trouble The market is simply over
loaded with securities. Many of them
are watered to the limit The public
has absorbed and absorbed until It can
absorb no more. Still they come We
see them looming in the distance by
tens and hundreds and millions-frst
and second mortgage bonds. first and
second preferred stock, convertible
bonds. debentures and common stock
No amount OF currency relief can be
permanently good until the fnanciers
OF our country learn the wholesome
lesson that new securities should be
used with great caution and on the
basis Of real value. less the overload
ed market break suddenly, and wide
spread disaster be the result