Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1907-07-19
DEPRESSED PROSPERITY.
MONEY MARKET SHOWS SIGNS OF coll
LAPsE-WELFARE DEPENDS ON
FARMERS AND GOOD CROPS


When such a conservative business
organ as the New York Journal o
Commerce is constantly warning itl
readers that the condition of the money
market is critical and that the assOci-
ated banks of New York have about al
their surplus tied up, it behooves othel
people to sit up and take notice. Call
money is offered in New Y 0rk from 2
to 3 per cent. but. accommodations
to mercantile houses can scarcely be
had for less than per cent. and the
railroads would be glad to secure funds
at that figure.' This would indicate
that the banks are cautious just now,
for there is fear of the future, hence
the high interest demanded on COM
mercial and time loans. yet the Jour:
nal of Commerce says: "Money is
scarce in New York"
! How is it elsewhere ? In all the great
interior money centers, like Chicago
and st. Louis. the banks have increas-
ed their loans in proportion to their
deposits and surplus funds are scarce
there also. In fact, the banks of the
western and middle states are loaned
up to the limit so that event of higher
| interest being offered later in the year
in New York there would be but little
chance of western money flowing there.
When the crops begin to move, which
will soon happen in the cotton and
winter wheat regions. the demand for
money by the cotton and wheat buy
ers will begin and must be provided for
and yet neither the Southern or West
ern banks, nor the New York banks,
would seem to be In condition to
stand that strain on their resources. If
the crops should prove to be light, the
increased price will demand about the
same amount of cash to take care of
them as if heavy crops prevailed and
the price was less.
There is also the probability that
some wholesale and country mer-
chants will require to borrow of the
banks, or seek extension of time on
their accounts, because of the unsea-
sonable weather hindering the ordinary
purchases of seasonable goods, which
would make a further drain on the
banks, just when the crop moving sea-
son is in full force.
1t would seem therefore to be wisdom
on the part of ordinary people, plant
ers, farmers and others, to keep out
of debt and be cautious about pur.
chases until good crops are assured
and until the money markets are re-
stored to their normal stability, for it
may be difficult to secure temporary
accommodations to meet pressing bills.
especially if the crops do not meet ex-
pectations In quantity and price.
Prosperity based on tariff protection
is precarious; it makes princes and
paupers-commercial princes of the
trust magnates and paupers of those
with incomes that do not respond to
trust high prices. Experience shows
us that such Republican prosperity has
always broken down of its own weight
and financial disaster has followed |
very bIgh prices. There are indica
tions that the present boom is on the |
verge of collapse aud it behoovea wise
men to be careful.
On the farmer depends our future |
prosperity. and if the Republican poll |
cy of protecting the trusts could be |
abolished, so that the farmers and Gus
toners would not be compelled to pay
protection prices for what they buy, a
year of light crops could be passed over
without disaster. But as it is we must |
have big crops and high prices to be
able to pay the trusts and corporations
enough toll to keep them from bank
ruptcv that would affect everyone
Keep your eye On the crops.