Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1906-11-14
Movins the Crops.

Wall street is having its annual
trouble of tight money, although the
administration has loaned the wall
street and other national bankers over
$15O,OOO,OOO of the public money With
out interest. As interest rates are very
high, both call and time money BRING
ing u per cent and over and has been
even as high as 30 per cent for short
period, it will be seen what great
profit the bankers are making from this
enormous loan of the public funds. As
nearly all the banks of the country
keep an account with one Of the New
York banks, when there is slack de-
mand in the country these deposits OF
the country banks with the New York
banks are greatly augmented, for the
reason that the Wall street banks pay
Interest of to 3 per cent on daily
balances. But when the farmers begin
to market their crops, the wheat and
other produce buyers begin to use their
money on deposit with the country
bankers and also borrow Of the banks
they do business with enough money
to buy the products the farmers are
selling. This crop movement compeis
the country banks to draw upon their
deposits in the Wall street banks and
at other monetary centers and lmmedi-
ately the Wall street bankers begin to
howl they must have more money to
move the crops:
As the Wall street bankers loan their
surplus money to the stock SPECTATORS
they are compelled to .call'' these loans
made to brokers and others, SO that the
deposits of the country banks can be
returned to them. Instead Of Wall
street banks furnishing the money to
move the crops they are merely return
ing the money of the country banks to
be used for that purpose
The real cause of the periodical Wall
street money squeeze Is that the bank
ers and their chief customers are load
ed down with railroad and industrial
stocks and bonds, for which no market
can be found at remunerative prices.
The public with money to invest have
found other Investments more safe and
profitable and as there is constant
further issue Of stocks and bonds, the
amount controlled by the Wall street
interests is increasing. Many of these
stocks are pure WATER" that is, there
has been no actual Investment Of the
money they represent, but interest is
paid on them, or Is expected to be paid
on them in the near future.
There is plenty of money in the
country to carry on all legitimate bust
ness, hut under the Republican policy
Of tariff protection and leaning the sur
plus public money to favored national
banks, which naturally finds its way
to Wall street for use, because the
profits are greater there than elsewhere
there has grown up an era of trust
and corporation imitation, by issuing
vast amounts of stocks and even bonds
which have to be financed by Wall
street.
The bankers are now Joining In a
movement for change in the banking
law, SO that they can issue more notes
based on assets, and unless the people
Of the country pay heed and instruct
their representatives in Congress to be
careful Of legislating in the interest OF
Wall street, they. will find the money
power provided with another instru.
ment to bleed them. There are already
too many laws which allow the few to
benefit at the expense Of the many.