Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1907-07-02
DEPRESSED PROSPERITY.

When such a conservative business
organ as Til. New York journal -,
Commerce T. constantly warning ~
readers that the condition OF ~.
money market Is critical aud 'hIt
the Associated banks II New York
have about all their surplus ti.I W.
1t tehooN"s cher people 70 IT mp and
take notice, Can money l. Offered ~
New York from to . per cent llt
Accommodations 10 mer"an' = h0r>r-
, can scarcely l.. had for less than u
! glad 10 secure funds ~ that h-u."
This would inGlc.t" II ,hr baIE~
". cautious, lu~: urN. tur ia. :. H.
! '.ar at III. future, h-uc" Va" nigh
interest demanded on coinm"rciaI AVID
= time loans. YET TIL. Iruta1i 81 CON.
mrrCe "a. Money il scare" ~ y ~
York
How j. il .lsewh"r.' IN al! the
cr.at interior money c.utars. like Chi.
Cago and 81. Louis, the tanks have
increased their loans in proportion 70
their deposits and surplus funds are
scare. there Also. In fact. the banks
ii The Western and Middle States are
loaned up TO the limit - :ha' zen
in the event OF higher interest being
offered later in the year in New York
there would be but littl" chanc. 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 aud wheat buyers viii
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.
II the crops should prove to be light,
the increased price will demand about
the same amount Of cash to take care
Of them rs II 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 un.
seasonable weather hindering the or.
binary purchases of seasonable goods.
which would make a further drain on
the banks. just when the crop moving
season Is In full force.
II would seem. therefore. to be
wisdom on the part OF ordinary PEG
pie. 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 restored to their normal stability.
for II may be difficult to secure tempo
rary accoi ,nodations to meet press
ing bills. especially II the crops do
not meet expectations in quantity and
price.
Prosperity based on tariff protection
10 precarious: II, makes princes and
paupers-commercia princes OF the
trust magnates and paupers OF those
with incomes that do no. respond to
trust high prices. Experience shows
u that such Republican prosperity
has always broken down OF It's own
weight and financial disaster has fol.
lowed very high prices. There are
indications that the present boom Is
on the verge OF collapse and It be-
hooves wise men to be careful.
On the farmer depends our future
prosperity. and II the Republican
policy Of protecting the trusts could
be abolished. 20 that the farmers and
consumers would not be compelled to
pay protection prices for what they
buy. year OF light crops could he
passed over without disaster. But as
II 10 We must have big crops and high
prices TO be able To pay the trusts
and corporations enough toll to keep
them from a bankruptcy that would
affect everyone. Keep your eve on
the crops.