The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-10-30
THE WORST IS APPARENTLY
OVER.

A comprehensive review of the finan-
cial situation by Henry Clews, who is
thoroughly familiar with conditions
and the causes for such conditions, APP
pears in this issue of the Statesman
and is worthy of the careful considera-
ton of the public.
1t seems apparent that the situation
is entirely in the hands of the people
and it is necessary that they familiar
ize themselves with affairs and use
sound judgment in their business trans
the banks and calling out of circula
ton all the money in the country is a
serious one and if continued in will
have tendency to aggravate the con-
ditions and bring absolutely no relief
TO the depositors. On the contrary
such a policy is suicidal.
Locally the effects of the several
rushes in the large eastern centers of
capital have been scarcely felt. In fact
but for the press dispatches. we
would hardly know there was a stir in
financial circles in some quarters of the
country. And indications are that suc'
local conditions will continue. The
banks have sufficient money on hand
20 meet all requirements for some
time to come and. unless the call for
hard cash should continue indefinitely
throughout the east, which is alto
gether improbable, there will be prac-
tically no effects felt in Walla Walla.
The proclamation of Governor Mead
of a holiday for the remainder of the
week has no particular significance
aside from the fact that it gives the
banks an opportunity, if conditions de-
mand it, to reserve their coin until
such time as it will be possible to
gather in an unlimited supply.
With the large cities calling for
money the banks of the state of Wash
ington cannot afford to ship their cur
rency and it is therefore necessary to
coLcerve the actual cash IN order to
prevent its leaving the state. While the
people of Washington have every con-
tidence, call for cash ,s a possibility
at any time. and the money must be
reserved TO meet possible demands.
There is perhaps enough money in
Washington to meet large bulk of the
demands being made on other bant~
throughout the country and the bank
ers of this state could easily come to
Tho 20 hot
under present circumstances, their own
depostors might get the infectious
disease and begin making crazy de-
mands for cash for which they have
no use other than to hoard it in an en-
deavor to assure themselves that their
money is within their reach night and
day.
BY the depositors gathering their
money in a misery spirit. showing it
down in their pockets and keeping it
within their actual grasp. the coin of
the country is kept from circulating
and business industries and all insti-
tutions suffer almost inestimable loss
which would eventually fall or the
shoulders of the depositors who would
bring about short season OF CONNER
cial stagnation.
With the balance of trade in our ia
vor. with crops good and prices ex-
cellent, with the country literally roll
ing in wealth, this condition of money
stringency is almost beyond under
standing. BY the manipulation of the
money and stock markets in the eas.-
ern cities a call was made for ready
money: about the same time hundreds
of small depositors began demanding
their money: large number of the
people got the disease and an unex-
pected rush was made in some local.
tiles for cash which was actually not
needed for any purpose whatsoever
and was wanted only that it might be
boarded for safe keeping. The disease
spread and in short time call money
was at a premium. People read of the