New-York tribune., 1907-01-01


Capital surplus undivided 2oI 9 Jas $50
swfgt Psrce5ape ensy Of reserve to deposits 5S
Capital surplus and undivided profits 81 5s5 is5 49, 553
Loans and investments. tss4 $53 80
Percentage Of reserve 10 deposits ......... 1875
An increase OF capital Items and OF deposits
ables bank to increase its loans but when it Is
November u last averaged only about 10
each 81? Of deposits 1t is apparent n that that the a
There could have been no such expansion Of loans
%h4ay RaTe the Fas onr S
without the expansion Of credit.
MONEY HELPS PROSPERITY.
1t cannot be doubted that the increasing supply
proionging the period of unparalleled prosperity
which the country is enjoying. The common obser
interest S rates r. This s ho~ever only
eff or5 Cola and T be- BE aay to nto 50
other forms of capital. soon finds employment If
return upon capital in industrial undertakings. in
vestment in the latter will naturally be stimulated
dwellings and business blocks pay a higher re-
turn money will be readily obtainabe de to multiply
of time railway securities, which pay higher rates
railway construction and the creation of a new
supply Of securities. And so all around the circle
labor thus stimulated causes a rise in wages. the
demand for consrncye , materials of all XII kinds af
and rates of compensation, reacting upon each
gold absorbed and the returns upon capital in the
form Of coin and capital in fixed forms practically
in 1896 money and credit idle IN the United
nS dad the e S T R and
In 1897 the the first $ per cent f rally railway bonds were ere
rise in railway. stocks. Low interest encouraged
the policy y Of re61dns he m raway ems Of the
construction of new lines. The expenditures for
Inauguration
perioG of prosperity
OPPORTUNITIES PLENTY
In country with the vast undeveloped resources
mate opportGnites for the fi of e cae
and in the fun tide of prosperity all facilities
for production and transportation be in
adequate for our needs and TO require doubling in
s eaPacity Furthermore every Upward movement OF
acts again upon prices. promoting the upward
soTbed By rising prices and the acyes and 0p plans
eppS er OF can n af in the
VIII continue until 1t is checked and limited by
spite Of Il. vas. .acreass i supply ~ithia in ten n
years money is now tight Il is 9asuraI result.
in turn. create demand for money which grows
Observe the figures for Bank reserves. deposits
and loans a given n 6oyG BY taxing up the slack
increase 4 @ of S9Sass in capital items and SCI ss7
national banks had enlarged their loans and in
,es;ments nearly s2,eoo.oo0coo and their deposits
Suspicion as to the oondon Of Ameoen een
finance, and disposition 10 contract accommoda-
lions this side. Altogether the situation was
critical Money and credit both dangerously
scarce and tHe situation badly Strained
that eighteen months Of industrial reaction fol-
lowed with heavy LIQUIDATION in financial circles
Ordinarily, years would oe required for recovery
from sach A strain Upon credit as that which
eliminated in the fall months of 1862 coming n. ID
d.d after period OF capital expenditure and com
pany ..cta':on without parallel in any country.
Usually there must be painful liquidation, cessa-
ton Of constructive work. with a consequent de-
nlcralizat.on of Industry and a lengthy period of
depression, until hy SLOW Accommodations the supply
of free can.tal av3ifbie Investment IS replen-
ished. T:.ou, when the stimulating .naucrca OF q