The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-10-30
A MONEY CRISIS.
time.

/
ity the country has even known. it
awakes this morning virtually without
money. and business stands still. 1t is
phenomenon unlike any other the
country has known. The great bank
ing business of the country unites to
avoid the danger of the fall OF Its
members in detail, which would pre-
cipitate general ruin.
| Altogether different are the condl-
lions today from those of 1923. That
panic was brought about by the fear
of change of the monetary standard
from gold to silver. 1t withdrew money
from circulation and destroyed all
credit. At this time the arrest of stock
jobbing operations and the necessity
of liquidation have created on the one
hand an unprecedented demand for
money and on the other hand have
caused depositors to withdraw their
money from circulation and lock it: up
for safety The stock of available
money has therefore disappeared AS
their last resource the banks of the
great money centers have ceased pay
ing money, and are doing business only
on the check or certificate basis. This
is general. 1t includes all the chief
money centers of the east and south.
San Francisco yesterday followed their
example. The banks of the Pacific
northwest are the last to adopt the eX-
pedient.
They find it absolutely necessary, be-
cause they have received notice from
all banks of the east with which they
do business. and from the banks of
drafts drawn upon them cannot be
paid or honored, till further notice.
The funds of our own banks, tied up
by this suspension. are for the pres
ent wholly unavailable. The sole re-
manning resource then, of the banks
of the Pacific northwest is to follow
the general example.
1t is useless to speculate on the
probable course of affairs or the posi-
bilities of such a situa; ion. One thing,
however; is certain-it will work itself
out. Our banks have sound assets;
| they are involved in no speculative en-
! terprises. Their securities rest upon
the property. the resources and the
regular business of the country. 1t is
in every way an act of prudence for
them and of safety for their depositors
that they should take such course as
will save them from being drained of
the money they hold, and keep their
resources in hand for the readjustment.
This difficulty is not of our making;
this crisis, though it affects us. is not
of our creation We have been drawn
attraction. Money has ceased to flow
and as we belong to the financial world
the s:oppage of the system is stoppage
for us. But there will be quick re-
covery, for paralysis of so vigorous a
body cannot long continue. There is
as much money as ever, but it has
been locked up in fright. The neces-
sity now is that every one should keep
his head. There will be Inconvenience,
indeed, but should be no fear of loss.
People can't long keep the money they
have withdrawn from circulation They
must pay it out in course OF necessary
business, and the stream will soon be
flowing again.
The governor of Oregon. in view of
the emergency, has issued a pracla-
nation declaring the next five days a
holiday period. 1t will have the effect
of legal suspension. of business till
Monday. November 4. This will give
time for such arrangements and ai-
justments as may be deemed advisable.
Changes in the condition of affairs in
eastern centers will undoubtedly take
place within that time. Meanwhile the
safest thing here is to wait.-Orego-
MAN.