The Wenatchee daily world. [volume] (Wenatchee, Wash.) 1905-1971, 1907-11-18
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HENRY CLEWS SPEAKS.

Henry Clews is one of the ablest
and soundest of New York bankers
and financiers. He has no particu-
lar ak to grind in politics, and his
statements of business conditions
are not only always admirably clear
but also unprejudiced. What he
says is worthy of attention. This
is recognized throughout the nation.
His weekly letters set the standard
| in their kind.
In his current letter Mr.. Clews
notes the improvement in New York
financial affairs, and regards the
"crisis" as ended. The situation
has been relieved, he writes, by the
action of the United States treasury
and the heavy engagements of Euro
pean gold. But he considers that
the latter source has been drained
sufficiently and that further engage
ments of foreign gold will, if hon
ored, reflect injuriously on the
country at some later date if pressed
now to too great a proportion of for
eign creditors. He believes that out
side relief must shortly reach its
limit, and that the nation will then
be forced to depend on itself. This,
of course, is obvious. Strain and
stringency will promptly disappear,
he AYERS, If the public abandons its
disposition to hoard currency. In
this connection, he says:
''It is sheer folly to take money
out of banks and hide it in stockings
or safe deposit boxes"
And this is too plan for comment.
Like other observers, Mr.. Clews
remarks on the solidity of the ma
| tons banks. ut is the one saving
feature of the situation" in his opin-
| ion. And so it is. Mr.. Clews goes
on to note that only have the banks
endured the tremendous strain in
splendid fashion, but that dishon
est management of banks has been
SO entirely eliminated that there is
no reason for distrust in this quar-
ter He logically adds that ''if de-
posiors are unwilling to invest their
funds they should put them in sound
banking institutions, Of which there
are plenty, and not deprive the COM
munity of the life blood of COM
merce. Let these hoardings be put
back into the banks, so that the lat
! ter can exercise their legitimate
functions of giving credit, and re-
covery will be quickly expedited"
And that, of course, is the crux of
the situation.
The furry has ended, or is fast
ending. There is plenty Of evidence
for the assertion. Folly and wild
fright have about run their course
in New York. The process OF read
! iustment is beginning. 1t can come
quickly or it can be greatly retard-
ed, accordingly as the people draw
out their coin from the dark and
useless seclusion of the sock and
tin can. We have taken 100000
900 in gold from Europe, chiefly
from England and Germany. The
gold will have to go back some time.
! We must eventually depend upon
| our own supply, and the earlier the
better Besides, Z per cent or tx
per cent is a pretty high price to
pay for our nonsense. 1t is debt
that we can't liquidate any too soon.
The banks have done much to pre-
vent boarding, but in the last analy-
sis this matter rest with the people.
The fact that the banks generally
have withstood the strain and have
emerged eminently sound ought to
be a convincing argument against
boarding. Cooperation and the ex-
ercise of common sense now will
quickly resolve this furry into moth
ing more than a bad dream.-Taco-