The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-16
HONEY AANIPULATlONS

tnancler, for his outspoken statement
OF conditions governing the money mar
ket IN his recent address before the
New York Chamber Of Commerce. It
may seem at first consideration that the
country at large has little interest in
the rates the spectators are paying for
money with which to margin their pur.
cnases OF stocks. This is popular
view, and it is about right. The out.
side country has some interest, however
not because the high call-money rates
are rejected in interior cities, for usu.
ally they are not, but because in man.
ner indirect there is an unfavorable
influence that goes out whenever New
York money is loaned at an equivalent
OF SO or 100 per cent, as sometimes
happens. @7' - - " N.
Only last week the call rate was up
to 80 per cent at one time. In so fa1
as this affects holders Of stocks and
makes them sell out or enables the bears
to make profits on the short side, no.
body outside Of Wall street cares much
But the effect does not quite end there
London, Paris, Berlin and other great
money centers grow nervous when they
see these rates. Our, financial system
under which the anomoly Of money at
3 per cent in Minneapolis and 6 OF
whereabouts for commercial loans in
New York and at SO per cent or more
in the call loan market, may occasionally
be seen, brings criticism upon us. Then
Wall street rises and calls upon the sec
rotary of the treasury for relief. He
holds the key to the money chest, has
great discretionary power, uses his
Judgment and affords relief when he
thinks it necessary, refusing it when he
thinks the situation not serious enough
to warrant it. His is difficult and
| thankless position. He dare not ap.
pear to be in the position of throwing
government money into New York to
enable Wall street gamblers to carry on
their campaigns with, neither dare he
take the position that this center of
speculation may shift for itself, for all
Wall street does not gamble and ]egiti
mate financial operations make up the
employment of a majority Of it's deni
zens, popular opinion to the contrary
Notwithstanding.
Stability Of rates and money mar.
ket free from violent fluctuation is a
great desideratum. Wall street men
Eare often quoted as praying for such
change in our financial system as will
bring this about, but this is difficult
thing to effect and tho many plans. of
! currency reform have been discussed
very recently it is Enot easy to devise
one that will meet all requirements.
TheSservice Mr.. Schiff has rendered
ie bo oi,E l.,
Of some Of thelapger banking interests
OF, Wall streesSsffroni whose heads come
,, essays and1 dresses advocating cur:
rency reform sand p deploring existing
conditions, while the managerial heads
are conniving with otheralarge financial
houses for the purpose Of calling in
loans, squeezing the borrower, boost
ing up rates to fictitious levels and
then loaning out the money again. This
Mr.. Schiff says has sof late become the
practice. It is. done so adroitly that
one on the outside would find it hard
to detect evidence Of collision, but Mr.
schif, who is. of the: inside, says it
is so. In Il
The spectacle Of number of big
banks combining for the purpose Of
manipulating the money market and
then starting the cry that there is not
money enough, in order that the secre,
tary. may be induced Ito. increase gov.
eminent deposits and so give them more
to manipulate, is not pleasing one
Even if the solution Of the perplexing
financial problem cannot yet be. salts:
factorily solved III it's entirety, it
would seem that the publicity given
the matter must operate to check those
hypoccritical financiers who, while cry.
ing Of money stringency and the in
sufficiency of our present financial sys.
tenn, yet profit immensely by conditions
bad enough at best and rendered; in.
creasingly bad by their Vaccinations