The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-12
THE MONEY SITUATION

Again the annual comment is heard |
of the ability of the west to finance it.
self and find the money at home to pay
for the crops and the expense of NOV
ing them to market. This is a fine
boast, and indeed when comparisons are
made with past years in which the
west was almost wholly subservient to
the east in monetary matters and the
independence Of the western farmers,
the strength of western banks, the gen
eral prosperity Of the people and the
present money abundance are consid-
cred, there is. a striking contrast af-
forded. The west of our day does
things in a money way that could not
be thought of a few years back.
Yet upon the full. contention Of
financial independence, the west, tho
predicting it's fulflment every season
for the past five years, has never made
good. Always there is a start with
country banks and the larger banks of
western cities taking care Of the money
demand, and drawing upon the east
when necessary for such balances only
as lie in New York to the credit Of the
west. But before the heavy movement
of the crops has passed more money
is always needed than the west had
calculated upon, and SO while it is a
fine thing to feel our financial indepen-
dence and to profit by it, it is well to
anticipate the pressure and to .remem-
Der that necessity knows no law. In
past years we have had to turn finally
to the east for money, and with the
enormous crops now moving to market
we will be fortunate indeed if we can
handle them without bringing currency
out from New York.
Upon the authority Of bankers of
prominence it may be said that the
western banks never were in such
strong position. 1t is easy to show
their strength by comparative figures
only such comparisons do not allow for
the growth Of the country, the greater
number of people, the greater crops.
Expansion has been made and more is
under way in the country's industries.
! The people are living better, labor is
| better paid, and all these things call
for more money.
| So if the west cannot fulfil it's prom
Use to do its own financing to the enc
it can at least present situation prom
Using freedom from stringency in the
fall, so far as can be foreseen. Last
year at q date earlier than this, money
had already been shipped from New
York to Chicago, but so far this year
no shipment of Importance has been
made. There is this advantage, that
the season has started with no demand
upon the east and the further assurance
treasury department. to keep the situa-
| 10 To
stringency by such relief measures as
may suggest themselves.
During@the month Of July there. was
, circulation in the United States 4 Of
! $l2, 100000: The government has been
at work for a year increasing the
money volume by great quantities and
: has succeeded in augmenting the tota
!. by 1852, 100000, SO that on Aug. last
there was a total circulation Of $2,757,
349,438. This is not only the greates1
! total yet attained in the history Of oul
country, but, on the basis of popula
tion estimated by the government a.
!. 84,779,000 Aug. l, it gives the larges
per capita circulation ever known, O.
! $32.52, an increase Of 10 cents for every
person for the month Of July, and O.
$1.23 as compared with Aug. L las
year. Thus has the government worked
to keep the country's money adequate
and yet there is some fear. Of an insult
fcient supply when the full pressure O.
minimum requirement is felt. There i
money enough. It is really more (
!; question of distribution and of stuff!
cheney in certain places at certai
times. &,SEs., &a~.& .
/ For the past five years, with on
short period Of comparative quietness
: it has been rush in our country t
keep up with the growth. The raj
s roads have given the most striking ea
ample of business growing beyond &c
: pacity for handling but in many othe
T. lines the same thing has been felt with
out the publicity naturally attaching t
s the condition Of the railroads. On
might have thought that in time tn
y mmodity-moving and general me-
= chandizing facilities Of the countr
4 end also the medium Of exchange
4 it's volume, would expand beyond IT
"a quirements, but it has been quite to tn
contrary year after year, and now wit
u great harvest on and big crops mo,
- ing to market it looks again as tn
% every ounce of preparation will prov
to have been wise and every facilit
will be taxed, r r.e ~ T..