The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-11-21
UNREAsONABLE ALARM.

1t will he source of satisfaction
TO the entire west to learn that Sec
rotary Cortelyou has gracionsly con-
sented to allow the bankers OF Wall
street to send $500, 900 to the west
To move the crops. To an ordinary
editor or ranchman this WOULD seem
TO be a large sum OF money, but
when 1t Is To be distributed among
several states IL Is but mere pit
lance. To make 1t so plain that the
ordinary mind can comprehend what
this sum means, 1t might be pointed
out that lt Is but double what the
two Salmon banks have ON deposit.
The government has over two hmm
dred millions to deposit in the New
York hanks to save the gamblers and
but 500 thousand to place with the
actual producers OF wealth for their
needs. Even this pittance Is not a
donation, nor can it be construed in
to a favor, because the western
banks have millions deposited in the
New York banks which they ALSO
lutely refuse to return to the owners.
Until the present tine banks which
were unable to perform the functions
for which they were chartered we're
declared insolvent.
Congress will undoubtedly try to
handle the money question so as to
relieve the situation. Several plans
will be presented no doubt to give us
rubber financial system. An elias
tic currency, probably a scheme
whereby the large banks will be able
10 issue notes upon their securities,
outside of government bonds, will
give temporary relief, but will not
be OF lasting benefit, ouly so far as 1t
increases the per capita circulation.
The business of the country will un-
doubleday expand in proportion to
the increased circulation, and when
the time might come again when
large amounts OF money was needed
In the west and south TO move the
crops the banks of these section
would be In practically the same con.
dition, unless the money was retained
In their own vaults In place of depos.
itine IL In New York City
There Is another phase of the pres.
ent financial situation which might
cause us to speculate upon the future,
and what may happen when the final
day OF settlement arrives. The gov.
eminent has poured into the New
York banks over 200 million tn 70.
lieve the present crisis This has
been used by the gamblers of Wall
street In addition to the deposits
from the banks all over the country.
what Will happen when the govern.
ment demands her deposits, even
though New York In the meartime
should pay her Indebtedness to the
west and south. To avoid the iney.
liable national panic, which might
then arrive, II will bo necessary To
Issue bonds to place In the banks to
be used as colaterals by these banks
In place of government money.
1t Is true the rubber currency now
proposed, which will no doubt be
sanctioned 10y congress, may relieve
the situation and make it not really
necessary 10 issue bonds until after
the next election, as was done dur.
Ing the closing days of lIarrison's adj.
ministratton. The leading repubi.
cans In that campaign realized that
the administration, through misman.
agement, had gotten the country In.
To hole, and the best thing Ia do
was to elect democratic president
anu place the responsibility of Tho
deplorahle situation upon the demo.
cratic party In place Of where II
actually belonged. Is There not ,
possibility that the democratic marty
In March 1900 will be confronted win
the same situation?
Secretary Curtelyou recently said
In an address before New York met.
chants that the cause OF the present
financial situation was boarded mon.
ey. The small capitalist ~ the com.
mon people do not hoard money IN.
less their confidence In the banks has
been destroyed. IL Cortelyou is right
on his premises it surely presaves \
bad condition for the future. 1t iso
toregone conclusion that If the small