The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1909-06-05
WE DON'T GAMBLE; WE JUST BUY CHIPS.

As the country revives in vigor after the business
depression it is like bestirring himself after
enforced ideness The exerton the blood of such
man to pulse with greater strength through his veins
and he feels the glow of health and strength
Money is the blood of the business world. Business
activity sends mOneyeither cash credit money
rushing through the arteries of trade and the business
and industrial worlds take vgor.
But suppose in the of the there ugly
tumor which claimed great share OF the blood in his
veins The blood diverted would leave his body less
well nourished for labor, wouldn't tf
The national bank returns under the April CALL have
been compiled and show some striking figures AS
pared with April 1907-this before the panc-bank
loans have increased in the United States bv 1927 OO
This is nearly half billion dollars than have been
loaned out to be used in business But in what business?
Thirty millions of the increase-ess than 10 per centhas
been loaned In that vast empire west of the Rocky
tains. Eghtytwo millions, about oneffth of the in
crease has been loaned in the great middle west from the
Rockies to the Hudson river and from Lake Superior to
the Gulf of Mexico An equal of the increase has
gone to the eastern states except New York city The bal
1924 100000 than onehaf of the total increase
has gone to New York cyand for what! To be used in
stock gambling What wonder there is the beginning of a
''bull stock market
How does New York get this money?
The national banks in this town compelled to keep
cash equal to fourth of their deposits These
banks loan to merchants and manufacturers and home
builders $5 out of every 500 of their deposits The other
go must be held to guarantee the soundness of the bank
and to force careful banking.
But 40 cent of this cash may deposited in
depository banks or preserve repositories and still be
called cash.
New York is designated as depository and the New
York banks bid per cent for these deposits But being
deposited in New York. this money or IS per cent of it,
can be loaned.
So it is that the banks throughout the country are for
hidden to loan to local merchant manufacturer and home
builder security that well known to officers and yet
this same none yfinds its way to New York. and there
swallowed up in the Well street game. 1t goes to Wall
street because must be kept nearly cash as possible
and so must go "ca oans, and call loans are prncp-
ally made stocks because stocks something that
always be sold in New York.
up to year ago these call loans were principally made
to brokers at from two and half to three per cent the
bankers making small margins The brokers in turn loaned
TINS money to their clients at from five to per cent
But within the last year the banks themselves have been
taking this added interest by loanng directly to the stock
gambler.
about $6OO,OO0OOO, and the requirements of the New
York national banks different from those of any
other city, fourths of this available for call loans
and to gamblers in stocks So it is that beside it's
money, New York dvers from the legitimate business of
the country at least $6O00OO0OO to buy chips in the big
Wall street gamble.
Money cheap in New York but only cheap for certain
purchases-for purchases of stock on margin
1t is through this tremendous out of town deposit that
the recent prices of stocks may be accounted for
There has been some talk about the pubc not being in
the market Bless your heart every national bank and
every man who has dollar in national bank is boosting
the stock game although he NAV not think So His money
is buying in Wall street.
And invested in the gamble the % per cent leash
reserve is not cash at all; fact which the panic of 1907
Illustrated to perfection
This isn't an argument for the state insurance of bank
deposits nor for the designating of cities as depos
toy ctes nor for the reduction in the cash reserve of
bank nor to have this cash actually cash. but it
Just little statement to show you how YOU yourself are
IN the stock game and just whose money helping to buy
the Injuries of the most luxurious city in the world
framp-No mum | never smoke 1t than Sunday
ourh worKin hours dreams of heaven
iAuy-im giad TO hear 1t, my heavenly
TrampNo, any Every gift measured nv ire re
sworkin' hours. to the eiver - 49, ~
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