Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1906-12-07
m1om MoNEr 1N WALL srnEEr

.MHL |
The. election does not seen, to have
solved lie difficulties facing the wise
Wall Street eieme'nf, which is so apt
and so cRRpable in prescribing for the
great, predicting sections OF the west and
south. Secretary SHAY has been called
in for Consultation. but thus fur shakes
his fcaad'hnd looks dubious, hoping the
eituatiobei viii in come way evolve itself
'pshs6 the great crops begin moving to
wards Europe TO balance the expends
itures OF thoughtIess and pleasure seek
ing Americans. The London Statist
accuses Wall Street Of promoting $40
worth Of acual property or privilege
into Sl0o, OcO in stocks and bonde, eI.
ppectnig tile public to pay the interest on
the piper. Wall Street responds that it
bas a right to anticipate growth. and
that thu Lublic-nud in some cases the
growth-bave go fur justified the theory
The general conclusion on the money
topic finds many supporters in Berliu.
Paris, London and New York. The
world has developed so fast and enter
prise his progrt ssed go far, and in so
many directions, that more business is
doing tl,at there is capital I" carry it on.
A single merchant who is 'i"rng too
large a business for his working capital
is APT to be in a precarious position, and
that is the condition Of the business
world MS a whole. There would un-
donbtetIly be suflcien, cnpitI for legit-
innate enter prises were it not that pros
penty breeds speculation in lands, III
mines mud III stocks, and this has
obsorbed much Of the working capital
OF the world at the very time that tins
enormous industrial and agricultural ex-
papsion has been going on.
Whether or not we ngree with tho
theory the conditions are here and must
be met. a federal statute regulating
tho creation Of corporations Of mn inter.
state character, so that capitalization
must be kept within reasonable distance
OF the present value Of the n%ssete, would
be rough ON the promoter. He could no
longer Charge ysloO.ooc for organizing
md passing On to the investing public,
un affair. tlIat! is Ilibe rally represented 10y
800, 900 iBrshares. This limiting law
works we'll in Connecticut, not only MS
to the paper issued, but rs to the maxi.
mum profits TIM. may be pnid OH the
paper.
While prosperity means an expansion
Of credits, the great associated banks OF
New York CITY, with more gold III their
vaults than has the Bank o. England,
find themselves unable to expand
credits. On the contrary. they are MAX.
ing strenuous efforts to curtail cF'dite,
to the end that their reserves Of cash
may satisfy the law.
The enormous expansion In goih sup
ply, to which Colorado has contributed
her part, rising from si.5O0,0OO in 1909
to 100000, 900 in 1899, has not kept pace
with enter PRISE. The more gold that
goes into the bank vault the greater the
expansion OF the credits surrounding
the vault, so that III :ie end the move
mont The pro porlion is not l6 to l, as it
was to silver, but 10 1000 to l.. This ex.
plans the hourly expectation Of a ! per
cent ratio Mt the Bank OF England. II
Ii at present @ per cent, the highest
regular rate since the Bnring failure
OF 1890.
Wall Street might Ms well make up
its mind ihni tl,e Bank Of England, in
common with the Bank OF France and
tho Bank OF Germany, viii resist to the
very lasty further efforts !" draw a~ay
gold, whether Secretary Shaw agrees or
does not avree to pay the interest in
sftaneit. This being the cnse, money Tor
enterprises. aud tor the enlarge.
meDi and Improvement Of old ones. il
hard ytnAg~i. Tie demands for such
capital tlin. high iDt0 the billions.
MeanhmBlthe call for money in moving
the GtopA. continues intense mud will
probably moi slncken Until tho end Of
tile year. People Interested in real
esthte, III mince, aid IN other forms Of
legitimate speculation decline to be
diverted by the calls OF Wall Street.
They may change their minds on this
huVltCt luttT w, Dut tieTe III UOt iLlb
eliphiesR Judi cation OF such action nj
present.. Tie ten months closing with
October chow enormous dividends from
mibiuR and meiallurgical enterprises,
with Il brilliant outlook for the future,
b,sed upon record high prices for the
several metaie.
I'll pleasant Tor a wosternef 70 turn
his gaze from doubtful Wall Street to
erst@ hile -bleedinR" Kansas. Tho state
bank commissioner hns Just announced
the totnl Of depofi,s IN the banks. almost
tht SAVING NJ tillcrs OF the coil.
The deposits nov exceed slI0.000,0 600.
n owing this, aud more In mort
The Kaneas baDk denositora
take over iaafiy vii ~ the $780,.
zoe, 700 oi new capital stock Tor the
completion Of the ST. Paulr raiiroad
Pacific comet extension, or they could
,uy out the whole iesue of 800, 000, 900
which the New York Central or The