The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1907-04-26
~fRENZlEp FINANCE.
40" n Stock Gamblers Play with
the Peoples Money.

The director OF the United States
mint In his recent review OF monetary
expansion and it's effect upon prices
and industry. brings out the fact that
the last statement OF the national
banks shows that the cash reserve
averages only about one dollar 70 each
ten dollars OF deposits. That is a very
startling fact. for IL shows that n de-
positors We're to withdraw one-tenth
OF their balances it would take all
the money the banks have. and at
once produce a disastrous panic. He
therefore concludes that credit IS ex.
panded TO the limit" and believes that
TO a v the country from financial dis.
aster a contraction Of speculative ac-
tivity is necessary. The history of
other such periods Of speculation in
dicates that the boomers will not let
up until a crash forces them 10. But
Mr.. Roberts also tells us that the
worlds production OF gold for the
past year exceeds $500. 600. 900 and Is
increasing at the rate OF over 5000
600 a year and the annual production
has more than doubled during the past
ten years. AS long as this gold expan
sion continues prices will continue to
rise and unless our spectators great
ly overrun their credit there should
be no smash up" though there will
undoubtedly occur periods of depres-
sion due 10 over activity.
a London Economist writer takes
a most pessimistic view of the danger
OF the increase In prices and declares:
Unless the prices OF commodities
cease 10 rise. IL is TO be feared that
the present crisis will not pass away.
and II the rise continues. the position
may easily become so acute that all
The chief banks Of the world may find
IL necessary to take yet more sternly
defensive measures TO avoid a very
serious and worldwide calamity"
There is no doubt that the enormous
~ increased cost Of commodities
sc per cent on the average-requires
much more money TO carry on the
business Of the country and keeps a
much larger amount OF cash in cricu-
lation in the hands OF the people. This
increase in prices has been accentuat-
ed by the advance in the market price
OF securities on the Wall street stock
exchange and elsewhere. mainly due
TO the clique control Of railroads and
other corporations and the ~frenzied
financing by the Wall street specula-
tors. We have a glimpse of this in the
evidence given before the interstate
commerce commission OF the Harri-
man stock dealings with the surplus
Of the Union Pacifcsand other rail-
roads controlled by the same inter
ests. We know hat hundreds OF mil
lions of dollars that have been wrung
from the people through unreasonable
railroad rates have been tied up in
vast stock exchange deals in which
Hartman. Rockefeller and others are
interested. instead of the money find
ing its way into the channels OF legiti-
mate business.
The operations OF the United States
treasury under Shaw and approved by
President Roosevelt have been help
Ing these frenzied inanciers by de
posting in national banks all the
ay ~ilable money in the treasury with
even char ging them interest. And
he enormity Of these transactions is
made worse by the fact that the in
crest rates on money in Wall street
ias averaged over Is per cent during
he past three months.