Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1903-09-09
Moving !. the Il Crop.

Moving the Crop.
Some Western newspapers are mitch
exercised about where the money is to
come from ito move the crops" they
fear, in view of the panicky condition
Of the stock market, that the New
York banks will have all they can do
to take care of their Wall street Gus
toners. One would think, to hear these
Republican organs playing the same
old tune, that the New York bankers
and Wall street furnished every dollar
to pay for each bale of cotton, each
bushel of wheat and what corn the
farmers dispose Of. Not dollar Of
their own money, necessary to move
the crops, is furnished from that
source. The money which Is paid to
the farmers for their crops comes from
the Western banks and is the deposits
Of the farmers and the business men
Of the West.
During the spring and summer
months the surplus Of the Western
banks Is kept on deposit with their
correspondents in New York and the
other money centers and they receive
the going interest on their daily bal
ances. The New York banks loan this
Western money to the Wall street
operators on call, or short time. on
stock exchange securities. When the
crop-moving time comes the Western
banks begin to draw their balances
from New York to supply the local de-
mand Of the crop buyers. That brings
about the annual old chestnut of Wall
street furnishing the money to move
the crops. In fact the Western banks
are only calling for their own money,
not dollar of which the Wall street
banks can refuse.
In ordinary years this money move
ment makes the rate Of interest in
New York advance In the fall. as an
inducement to people who have unem-
plOyed funds to loan 1t on stock Sc
surlties and replace the Western mon
ey, and in few months the dow Of
funds Is again to the financial centers
through the ordinary channels OF
trade. The farmer selling his grain
and paying his bills to the retail mer-
chant, who pays the wholesalers, and
the latter the manufacturers. When
speculation is rampant, as 1t has been
this year, the demand for money is
greater, and the recall Of the money
to the West, makes 1t more difficult
for the banks to finance the Wal
street demand. When October arrives
| 1t may therefore be expected that
money will be dear In New York, and
the spectators will have to pay high
rates. There is more than enough
money to supply all the demands Of
business, but not enough to furnish
the millions tied up in loans on stock
collateral In Wall street.
In former times the Southern ant
| Western banks were borrowers Of
extra funds m. New York to reloan Il
their customers who were buyers O
cotton, wheat aud tiher cereals, bu
| that time has gone, never to return
except to very small extent. AMI
then only II the New York banks hay,
more money oil hand than they cal
use to advantage In loans In their owl
locality. So when the pinch come
and the cry goes up that the New
York banks must have "money I,
move the crops and the Secretary O.
the Treasury Is called upon to nil
them, the cry is really for money t,
move the Wall street crop OF undigest
ed securities that the trust promoter
have been SO assiduously cultiyating
In the stress last fall every dollar tina
could be by any Interpretation Of tn,
law be diverted from the Unitet
States treasury was loaned or deposit
ed with the New York banks, which
they have never repaid. The who'll
| power of the administration has beel
used to aid the stock gamblers, ant
the promise is made that more ant
even illegal aid will be extended I,
them.
The present trouble In Wall street 1
because the New York banks are pre-
pairing for the repayment Of the West
ern money they have been using ant
are adjusting their loans to meet tn
emergency that they know will late
encompass them. The financial mag
Mates Of Wall street see that the Uni
ted States treasury has about exhaust
ed all its resources to replenish tn,
dwindling reserves of the Wall stree
bankers, and the overloaded specula
tors view with apprehension tn,
shrinkage In value Of the paper for
tunes they possess.
The Republican idea that the govern
ment must aid Wall street, and tina
the financial affairs of the Unite,
States must be run. according to tn
dictation of the big bankers, Is meet
ing Its own reward. Unfortunately
thousands of honest folk will be ruin
ed and the business of the countr.
disrupted by the partnership of tn
financial and trust magnates with tn
Republican administration.
Financial LegisIation.
4 The new currency and financial bill
which is being concocted by the sena
/ torial coterie and has the presidential
sanction will meet with considerably
opposition both from Republicans ant
Democrats before 1t becomes the law
II 1t ever does command a majority o
both houses Of Congress. The self-ap
pointed subcommittee Of the Senat
finance committee, consisting of Sen
ators Aldrich, Allison, Plat of Connec
ticut and Spooner, have undertaken I,
pass bill to help the tru,>ss magnates
the Wall street spectators and tn
New York bankers out of tight place