Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-07-11
ABOUT FINANCES
JOURNAL OF COMMERCE TALKS
OF CONDITIONS.
New York Journal is Changing Posi-
tiOnS With the pOpuIiStiC "CaIam.
ifY HOwIerS" of Ten Years ADO,
Washington Correspondent Ex-
plains WhY.

When euch conservative business or.
gan as the New York Journal of Com
merce is constantly warning its readers
that the condition Of the money market
is critical and that the associated banks
OF New York have about all their surplus
tied up, it behooves other people to sit
up and take notice. Call money is Of.
fered in New York from to 3 per cent,
but denominations to mercantile houses
can scarcely be had for lees than 6 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 tear Of The future, hence
the high interest demanded on CONNER.
cial and time loans, yet the Journal 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 increased their
loans in proportion to their deposits and
surplus funds are scarce there also. In
fact, the banks of the western and mid
die states are loaned up to the limit, so
that even in the 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 as they soon will
In the cotton and winter wheat regions
the demand for money by the cotton and
wheat buyers will begin and must be
provided for and yet neither the Southern
or Western banks nor the New York
banks would seem to be in q 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 merchants will
require to borrow of the banks or seek
extension OF time on their accounts, be-
cause Of the unreasonable weather him
dering the ordinary purchases of season.
able goods, which would make further
drain on the banks, just when the crop
moving system is in full force.
1t would seem, therefore, to be wisdom
on the part Of ordinary people, planters,
farmers and others to keep out OF debt
and be cautious about purchases until
nd H.,
money markets are re tored to their nor
NAL stability, for it may be difficult to Sc
cure temporary Accommodations to meet
pressing bills especially if the crops do
not meet expectations in quantity and
price.
Prosperity based on tariff protection is
precarious; it makes princes and pau
pers-commercal princes of the trust
magnates and paupers OF those with in
comes tnat do not respond to trust high
prices. Experience shows us that such
republican prosperity has always broken
down OF its own weight and financial dis.
aster has followed very high prices.
There are indications that the present
boom is on the verge of collapse and it
behooves wise men to be careful.
On the farmer depends our future
prosperity and if the republican policy
OF protecting the trusts could be abol-
ished SO that the farmers and consum-
ers would not be compelled to pay pro-
lection prices for what they buy year
of light crops could be passed over with
out 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 bankruptcy
that would affect everyone. Keep your
eve on the crops. j. X. n.
Washington, d. c., July l.