The independent., 1903-03-26

the west concerning the financial con-
ditions that have been developing for
some time in New York. The Inde-
pendent wishes to say to them that it
does not believe there will be. col.
lapse in the immediate future, though
one is certain In the not very far dis
tance. The abnormally high interest
rates prevailing usually presage dis
aster, but every interest of the mon
eyed men is to prevent any collapse
until after the next presidential elec-
tion il the thing is possible. Most of
them believe that they can do it. The
opinions of the great financiers in Eu-
rope is that they cant do it and that
the collapse will come before the fall
Of 1904.
The present stress Is caused by the
failure of the Aldrich and Fowler
bills. The New York pirates played
their game in anticipation of the
passage of both those bills. They did
not pass and they are squeezed. The
passage of those bills would have put
III the collapse, but wnen it did come,
it would have been much worse.
The intensity of the squeeze is
shown by the abnormally high price
of government bonds that can be used
by the national banks to increase their
circulation. Two per cent govern
ment bonds have been sold on Wall
street for 108, the premium absorbing
the interest for four years in advance
While some of the banks have not is
sued the full amount of circulation
that they are entitled to under the
law, the reason is that government
bonds are so high that there would be
loss in the transaction. Last week
registered per cent bonds sold at
135 and coupon As at 1856. The prem
ium on either of these class of bonds
would absorb the interest for more
than eight years. 1t will be seen that
banker who bought bonds at that
price, deposited them in the treasury
and got their face value back in ma
tional bank notes would be loser.
He would have no mere money than
he had before and would get no in
terest on his bonds for eight years. for
he paid that out in advance as prem
iums on the bonds. He would lose
the expense of the transaction. Bank
ers don't increase the currency for the
public good, but for the money they
make, and when they can't make any
money by the transaction, they dom.
increase the currency panic or no
panic
The saving clause in the present
situation is the confirmation of the
Panama canal treaty. AS soon as Co.
lombia ratifies the treaty land it will
ratify it If every member of the Co.
lombian congress has to be bribed to
do it) there will be available $780,
100000 of Panama canal bonds for
banking purposes and that much in
crease in the national bank note cir
culation. The Independent believes
that the great financial interests can,
and will, tide things over until that
time. To do it, the New York clear
ing house would increase the cur
rency by two or three hundred mil
lion, in the same unlawful way that it
did in 1893, by issuing certificates to
be used as money, if it came to last
resort.
1t is barely possible, but not at all
probable, that sudden fright might
seize the people and a general rush
made to withdraw deposits, but with
the whole daily plutocratic press
preaching confidence" that is con-
dition that at present does not seem
possible. A thing that will go far
toward preyentinq a loss of confi-