Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-30

originally into the farmers fat wallets and
then back into the channels Of trade. This
process will consume less time than for
merly and the transmission will be more di-
rect and more complete as to amount. The
farmer already carries with him his west
pocket reserve"-that is to say, the money
needed In day-by-day disbursements. and
that requires no replenishment. He de-
posts his cash in bank as fast he gets
II and every one of nearly 5000 minor in
terror banks loses no time forwarding Il
goodly part of it to the reserve cities to the
credit of its account there, because the
money Is needed in the centers more than
at home and pays the banker better. Hence
the time that the money is actually out OF
active employment in the larger held OF
business is in each instance almost mimi
tesmal. The bulk of the aggregate opera
tons at the front during the few weeks
Immediately following the harvesting OF I'M
portant crops causes temporary inconVen-
fence, however, and puts bankers and bor-
rowers on their mettle, but in all TINS I'M
usual commotion incident to the saving OF
the emergency end of bOunteous produc-
tion there Is small cause for distress OF
gloomy foreboding. With the absolute GER
tainty ahead of unparalleled earnings on
every railroad and industrial stock II Is
the occasion of slight wonderment that
holders refuse TO be shaken out OF their
certificates on account of the lamentations
of the Jeremiahs who resolutely refuse to
so that they may obtainn a view of the
gorgeous scene on the other side.
There is the best Of reason for holding
fast to the belief that the government will
continue to lend every legitimate aid to
the business interests in financing the coun-
try through its strenuous 1906 period OF
great prosperity, season of need now
we'll along and which will terminate very
soon after the national election. The gov
eminent at Washington has accumulated
about $15,OOO,0O0 excess money which 1t
has locked up in the vaults. 1t is WITHIN
the power of Secretary Shaw to nberate
a large part of this idle money and with 1t
lubricate the machinery of trade. He has
the will TO do this very thing and is under
instructions to give relief when In ms
Judgment the need for action arrives. AS
far as lies in his power the general stu
alton will be kept undisturbed and free
from excuse for political or any other kind
and species OF discomfort. BY singular
coincidence election day and the natural
ending of the annually recurring monetary
stringency come about the same time. This
circumstance will not operate to the dlsad-
vantage of the money market or to the
disturbance of stock market serenity, it
may safely be assumed, although no direct
connection may be traced.
drawing ahead for advance payments on
some of the cotton grain. flour, provisions
and other commodities we will ship later on
TO Europe? We have done the same thing
before-dozens of times-and survived.
What II money does command high rates?
II it wasn't worth the price borrowers
wouldn't pay 1t. 1t is only when business
is at high pressure in times of general
bankruptcy that people pay unusual rates
in the first case because there is profit in
the transaction and in the last because the
victim must have the cash. You never see
high interest rates in periods of stagnation.
Then 1t is that idle funds pile up IN the
banks. Solvent borrowers have no use for
It, 1t is dead weight. 1t goes begging at
] ard per cent.
Annual reports of railroads, most of which
are now In. tell amazing story of in
creased business and enlarged gross and
net earnings Transportation capacity is
taxed to the utmost in every part of the
country and there is no sign of reaction,
look where you may. From railroad view
point the outlook could not be improved
upon. The readjust ment of rates since the
abatement of the rebate evil meant tens of
millions increased revenues and the bene-
fetal effects of the new Hepburn bill prom
Uses to be quite as marked. In the matter
OF free transportation alone the Pennsylva-
mia will be fully 100000 better off an
nually, it is estimated. TIE New York Cen
trail will be nearly as large n gamer, al
though 1t is not SO badly afflicted by the
free-pass bug. Other roads will add heavily
to their passenger income by reason of the
abolition OF promiscuous deadhead privi-
leges. That item alone will offset many
features of the law now construed un-
favorable.
The physical transformation that has
taken place in Erie during the last three
years borders the wonderful. 1t has not
had the money to spend that the richer
trunk line systems could command but it
has gone steadily ahead and accomplished
a great work. The property has been
strengthened In every way-roadbed i'm
proved, hundreds of miles of new rails laid,
bridges built, equipment doubled, terminals
enlarged, grades reduced, curves straight
ened and further betterments projected that
will make the system a rounded out and
completed railroad proposition within the
next two years. Norman B. Ream has done
most of the planning and President Under
wood the execution.