Bisbee daily review., 1907-07-23
in Chicago Inter Ocean
DEPRESSED PROSPERITY.

When such a conservative business 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 to per cent but, accommodations to mercantile houses can scarcely be had-for less than 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 future, hence the high interest demanded on commer- cial and time loans, yet the Journal of Commerce says: Money is scarce in New York
 How is it elsewhere? Tn all the great interior money centeTs, like Chicago and St. Louis, the banks have increased their loans in propor- ton 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 in terest being offered later in the year in New York there would be but lit tie 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 Dc 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 cash 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 mer- chants will require to borrow of the banks, or seek extension of time on their accounts, because of the unsea- sOnable goods, which would make a further drain on the banks, just when the crop moving season is in full force.
 It 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 pur- chases until good crops are assured and until the money markets are re- stored to their normal stability, for it may be difficult to secure tempora- " accommodations to meet pressing bills, especially if the crops do not meet expectations in quantity and price.
 Prosperity based on tariff protec- tion is precarious; it makes princes and paupers-commerc princes of the trust magnates, and paupers of those with incomes that do not re- spond to trust high prices. Experi- ence shows us that such Republican prosperity has always broken down of its own weight and financial dis aster. has followed very high prices. There are indications that the pres ent boom is on the verge of collapse and it behooves wise men to be care ful.
 On the farmer depends our future prosperity and if the Republicans policy of protecting the trusts could be abolished. so that the farmers and consumers would not be compelled to pay protection prices for what they buy, a 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 corporations enough toll to keep them from bankruptcy that would affect everyone. Keep your eye on the crop. FsK