New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-02

future ought to be avoided 4 possible. The ruin
% Snfm az is
crashes always result from violent contraction of
ened and wants his money, and wants it immedi-
ately The impossibility of meeting such an eX-
traOrdinary demand produces such calamites as
the country suffered in 1888 in 1873 and in 1898 The
National Bank that of 1873 from legislation Which
drove out of circulation vast volume of paper
carry on the war, while that of 1893 was the uti-
mate result of destruction of silver as money, and
the effort the part of the administration and
financial institutions TO reduce the volume or
by proclamations from the Executive and from
the banks that the financial condition Of the copn,
a system of financial contraction which would de-
The Which Sf' b 0o ceTesnd administration
and its abettors produced intensified the silver
fight and without unlimited expenditure of
money Bryan would have been elected and silver
soon be forgotten The expense and excitement OF
that campaign form an epoch in the financial his
tory of the United States teaching the lesson that
injudci3us and violent tampering with the cur
Between 1895 and 1900 nature came to the relief
OF the financial institutions of the civilized world,
contracting the volume of the circulating medium
to gold alone. Twelve hundred millions Of new
more than me SUPPLYING the deficiency that Rad been
caused by the destruction of one OF the money
The Democratic party, mindful only of the ire
mendous vote cast the silver issue in 1895. re
Reated its demand for silver. not being aware, Of
demand and that the silver issue was buried so
Immediately after the election of Mckinley in
1900 force into operation. And to
understand that force must remember a funda-
mental principle in economiCs-that money. like
and demand and that all of the money in circuld-
ton the hand and all of the property for
sale on the other are reciprocally dependent on
the supply and demand for each other. That being
so; every increase in the amount of property for
sale create a corresponding increase in the de-
mand for money. Money being plentiful &C
count of the output of gold, the genius Of the
American people undertook to supply a sufficient
amount of property to keep pace with the increaS-
ing amount of money. They organized almost
every Industrial Institution in the United States
market This created vast amount of property
for sale which had not existed previous to the
organization of these trusts. The result IS that
there are thousands Of millions of what j. Pier
pont Morgan calls ''undigested bond Issues" In
fact they have far surpassed the increase of the
money volume that there has a terrible
stringency in the money market which IS squeez-
ing the stock market and the water from the
overissue of stock which threatens financial
coudburst in Wall Street before these stocks can
be ''dgested-"
he checked sufficiently to create healthful cond-
tiCns without building a Johnstown dam. which,
when it breaks. will destroy all the financial inst
tutionS in the country? The remedy suggested by
edy would he complete if it did not encourage
more water in stocks and enhance the danger OF a
universal collapse when larger cloud has
gathered burst upon the country
The Cdy Of Mr. Cannon is stop now. and let
the financial dam burst and the flood come and
re-establish the business of the country lower
help can come by palliation and the cancer must
be cut cut. then Cannon is right If, on ths ether
hand, by squeezing out the water gradually and
increasing the circulation a little at time so as
not to create an immediate cloudburst. the country
can ultimately be brought to heathful condition,
then Aldrich is right