The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-16

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reserves and causes wondorment az to
what are the conditions likely to prevail
in the fall OF the year, when the USUAL crop
movement necessities for money assert
themselves. One thing that stands very
much in onr favor, OF course, Ii the oom-
parative ease in financial conditions In
Europa, which, coupled with our htgh
credit, allows us to ask for money there
with O reasonable surety that we will get
it. The Moroccan diplomatic inbroglio
has become a thing Of the Fast, and 1t ap-
pears that the Russian loan aud suoh other
home demands for money, 80 to speak,
that are addressed to the European markets.
will not be Of a troublesome nature. Europe
Is therefore not only in q position 10 spare
us money, but is Enthusiastically willing 10
do SO. 1t is TO be noted that our foreign
trade balance is charging. The recent
fall in the price Of our cotton and bread
stuffs has increased our exports Of these
articles, 80 that va are now have been
for some months making exchange
much faster than was previously the CASE
II we should be blessed with large crops
in the present year, 1t seems altogether
likely that foreign takings Of our chief
articles OF staple produce will afford us
HedlS Ol T6Pby ulohN VI 'bO ihNASy NSN~N'S
advanced to us by European bankers,
There are, It is true, those who assert that
10 a technical Wall Street sense bumper
crops this year would not be an advantage
They maintain that these would serve the
double purpose Of lowering prices for the
commodities concerned, which would not
produce a favorable impression in the
agricultural community. and also OF aug
- -. 81. Jonnonla ppnp tho Gnanoinl
! centres OF money to finance the harvests'
Those who hold 10 this view lay stress upon
the fact that reserves OF wheat and cotton
in farmers hands are large, and hat q
Hood OF further production Of these ar
ticles would tend to bring the country
Jac'; to conditions OF former years when
80 muoh wheat and cotton we're produced
that they were, az was me~taphorically said,
worth nothing On the other hand,
lov,r prices for these oommodities-eyen
IL they wsre TO be sssn a. the result OF
larSa croD3 this year. which Is a matter
entirely improved would certainly stimu-
late an export demand for them, and either
calse an IMPORT into the country OF addi-
tional supplies OF new money or give our
bankers the where withal 10 paw OF their
foraign borrowings. There can hardly
be any question, it Seams as 70 which alter
, native wJIla be most desirable TO the
c)untry "a a whole.
The money market strain OF the last two
weeks brought out, OF course, the familiar
appeals to the Secretary OF the Treasury
to again relic We the situation as on former
occasions by ~depositing public money in
the banks. and the Secretary did, in fact,
deposit small sums in the banks 40 as to
oounteract whatever losRes the banks were
actually undergoing there through absorp-
ton Of money by the Sub-Treasury by
customs payments. This once more re-
calls the old discussion as to whether
! the Treasury Of the United States hould
| or should not take part III banking business
and, II 40. to what extent. There is almost
il not absolutely a consensus among those
who have endea voredt TO look a. this subject
! in a large way that the Ideal method OF
| arranging the care OF our national finances
would be to entrtlst to a great national
bank, as IL the case in other civilized ooun-
| tries; yet it is now generally realized that
owing to a great variety OF reasons tn"
establishment Of a national bank in this
country is impracticable. Events are all
the time demonstrating, however, that II
we cannot have a national bank the next
! lest lnltlR We CdN 'D IL ~ plt'C u' nv
Government money with the different
! national banking institutions "a they are
now constituted. the Government exacting
ample security therefor, a small rate OF
interest on the money deposit ed, and also
reserving to itself the right to check
against the sums standing TO its credit the
same a. any other bank depositor. This
would, In the first place. accomplish that
purpose which IL most of all desirable and
has been attained by other great nations.
Of placing the money In the country at the
disposal Of the business interests Of the
country and not locking it up, or any con-
siderable portion of it, in the coHers OF a
national Treasury Depart mant. II would,
again. place upon the national banks a
responsibility to a greater extent than they
now feel Of guarding their extensions of
credit and maintaining an abundant reserve,
since they would know that no Government
help in any time OF trouble could be eX-
tended to them. And " would remove
from the Secretary Of the Treasury tho
difficulty and dangerous task Of regulating,
or attempting to regulate, at periods Ct
| recurring frequency the rates Of interest
| charged for the use OF money at the leading
financial centres.