The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1907-07-02
Depressed Prosperity.

organ as the New York Journal of
/ Commerce 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 be-
hooves other people to sit up and
take notice. Call money is offered in
New York from 2 to per cent, but
Accommodations to merchantile houses
can scarcely be had for less 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 fear of
the futures hence the high interest de-
manded on commercial 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 middle states are
loaned up to the limit so that even in
the event of higher interest being offer
cd later in the year in New York there
would be but little chance of western
money flowing there. When the crops
begin to move, which will soon happen
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 a 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 each 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 ac-
counts, because Of the unreasonable
weather hindering the ordinary pur-
chases of seasonable goods, which
would make a further drain on the
banks, just when the crop moving
season is in full force.
1t would seem therefore to be wis
dom on the part of ordinary people,
planters, farmers and others, to keep
out of debt and be cautious about
purchases until good crops are assured
and until the money markets are re-
stored 20 their normal stability, for it
may be difficult to secure temporary
accommodations to meet pressing bills,
especially if the crops do not meet ex-
pectations in quantity and price.
Prosperity based on tariff protection
/ IS precarious; it makes princes and
pau )ers = commercial princes of the
trust magnates and paupers OF those
with incomes that do not respond to
trust high prices. Experience shows
us that such Republican prosperity
has always broken down of its own
weight and financial disaster has fol-
lowed very high prices. There are indi-
cations 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
abolished, so that the farmers and con-
sumers would not be compelled to pay
protection prices for what they buy,
year of light crops could be passed
over without disaster. But as it is we
must have. big crops and high prices
to be able to pay the trusts and cor
porations enough toll to keep them
from bankruptcy that would effect
everyone. Keep your eye on the crops.