The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-12-31
Analysis Of the FL
nanclal Situation by
Flavius J. Van vOr-
his.
Comptroller'S Abstract No. 50


during the time. To have such an in
crease considerably curtailed or
stopped as it has been since the 9th
day of September, must have de-
pressing effect upon many branches Of
business.
1t is fortunate that the first effect
has fallen upon the gambling trans
actions of Wall street and that the
greatest losses have been in the spec
ulative prices of stocks. There can
be no activity in stock gambling rn-
less there Is a continual expansion CT
bank credits. If from any cause the
New York banks are unable to in
crease their loans and discounts the
inevitable result must be a depression
in the stock markets of Wall street.
The secretary Of the treasury has
been assisting in keeping up this
gambling in Wall street by deposit
loans made to national banks, but the
time came when he was no longer
able to increase these loans or in any
way to mitigate the depression In the
stock markets.
Since March, 1902, The whole in
crease of United States deposits in the
New York banks amounts to only
about $2,500,000. There was not suf-
ficicnt money to keep up the expan-
sion of loans and this drove out of
the central reserve banks a large
amount of the money they had. 1t
may be matter of some surprise to
some business men to know that from
that date until now the central re-
serve banks lost about $240, 900, 900 of
their aggregate deposits. The larger
part of this, about 100000, 900, was
from the New York banks. The ex-
pansion Of gambling credits reached
their limit. They could not be in
creased without an increase of de-
posits from some source. When the
depression in stocks followed, the
money that had been attracted to New
York by interest paid for it's use in
Wall street gambling, returned to the
country banks from which it had come
and where it ought to have remained
in the first place, to be used, II used
at all, in legitimate commercial trans
actions. This is very clearly shown
by the fact that the country banks
have in the time increased their de-
posits almost s200,000,000 while the
banks in the reserve cities have made
very little change. 1t was FORUM
ate result when there might have
been disaster
The situation is not now the same
that it was in 1893 Then the New
York banks were in condition that
enabled them, il they did not actual
ly cause the panic of that year, to
take advantage of it and profit by 1t
or at least to protect themselves
against it, Now, the probabilities are
(although they deny iD that they
have large amount of stocks as col
laterals and that makes it necessary
for them, If possible, to prevent pam
ic, which, If it occurred now, would
involve them in the general catas-
trophe. They are in danger of being
caught in their own trap. In their
avarice and thei" attempt to deceive
the country about their connection
with and their participation in stock
gambling they have deceived them
selves.
Their great hope has been legisla-
ton that would put them In condi-
tion and give them the power to con-
tinue the expansion of loans. They
will never forgive President Roose-
welt for his opposition to finascial leg
islation. II need not be surprise II
In the coming campaign Wall street
and the eastern banking combination
desert him ms they deserted President
Harrison In 1892. They are almost GER
tain to do 80 II they can induce the
democratic convention 10 nominate
some one 10 suit their interests.
FLAviuS ]. VAN vORHIS.
indianapolis. Ind.