Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1907-07-05
DEPRESSED PROSPERITY


When such a conservative business
organ as the New York Journal OF Com
merce is constantly warning lite readers
that the condition OF the money market Is
critical, that the associated bupkeof New
York have about all their surplus tied
up, il behooves other people to sit up
and take notice. Call money Is offered
in New York from . to 8 per cent but
Accommodations to mercantile house 8
can scarcely be had for less than 6 per
cent and tie railroads would be glad
to secure funds at thRt figure This
would indicate TIE! the banks are
cautions just now, for there is fear OF
the future, hence the high interest de-
manded on commercial and time loans
yet the Journal OF Commerce says:
sMoney is scarce in New York
How Ia it elSeH here? In all he great
interior money centers, like Chicago
and st. Louis, the banks have increased
their loans in proportion to their deposits
aud surplus funds are scare there also.
In fact, the banks OF the western and
middle states are loaned up to the limit
SO that even in the event OF higher in
terest being offered later in the year in
Now York there would be but little
chance u western money flowing there.
When the crops begin to move, which
will soon happen in tie Cotton and
Winter wheat regioDs, the demand for
money, by the cotton and wheat buyers
win begin and must be provided Tor aud
yet neither the Southern or Western
banks, nor the New York banks, would
seem TO be in q condition TO stand thai
strain on their IL the crops
should prove to be light, the increased
price Will demand about the same
amount Of cash to take care OF then: MS
il heavy crops prevailed and the price
gas less. :
There is also the probability that some
Wholesale and country merchants Will
require to borrow Of the bnnks, or seek
extension Of time on their. accounts,
because OF the unreasonable weather
kindering the ordinary purchase OF
~seasonable goods. which would make a
urther drain on the banks, just when
the crop moving season is in full force.
1t would seem therefore to be wisdom
IN the part OF ordinary people, planters,
farmers and others, to keep out OF debt
and be cautious abont purchases until
good crops arc assured and until the
money markets are restored to their
normal stability, for it may be difficult
10 secure temporary Accommodations to
meet pressing billie, especially il the
crops do not meet expectations in guam
tity and price.
Prosperity based on tariff protection
il precarious; it makes princes and
pIupers-commercial princes OF the trust
magnates and paupers OF those with in.
como that do not respond TO trust high
p.ice5. Experience shows US that such
republican prosperity has always brok-
Ell down OF its own weight and t~inancial
di saster has followed very high prices.
There arc indications that the present
boom Is Cd the verge OF co!laspe and it
behooves wise men 10 be careful.
On the farmer depends our future
prosperity, and IL the republican policy
Of protecting the trusts could be abolish
ed, 60 that the farmers and consumers
would not be compelled to pay protcc-
ton prices for what they buy, a year Of
light crops could DO passed over
witbdiout disaster. But as it is we
must have big crops and high prices
to DO able to pay the trusts and corpora
iions cDoush.toll 10 keep the n from
a%nlIuptoy that would affect everyone
qeep I, our eye On the crops. -