The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-09-26
THERE WILL Be NO
MONEY SHORTAGE
Treasury Officials Are Optimistic Un
Business 0utlook-Financial Insti-
tutions Build Up Reserves.

WASHINGTON, Sept. 26.--It is un
likely that there will be any shortage
OF money this fall anywhere In the
United States. This Is not to be con
strued as a promise to any particular
individual. but Is the large, impersona
view OF the treasury department
whose hand is on the public pulse o
the nations financial and business lie
and represents the opinion or ohicial'
who constantly watch for symptoms o
any stringency.
In their opinion, the danger mark, Il
there actually has been one durint
several months past, has been LEI
asterR.
Primarily the banks saw what
looked like a money shortage comine
several months ago. They knew they
could expect no help from the United
States treasury, such as they got In
1908, and prepared themselves. They
have piled up gold. built up reserves
and cut down risky loans, and bonds
or other securities which might not
be easy to sell have been turned into
money New loans have been closely
scrutinized.
BY doing all that the banks have
fortified themselves against all emer
gency. How we'll they did Ii was seen
last week when $4,000. 900 was moved
out OF New York TO other banks and
done very easily Panics foreseen
never come, financiers say.
Money is plentiful in England and
on the continent of Europe, That Is
always said to be a good sign IN
making prediction for this country.
Nearly every crop In this country
this year Is reported TO be a bumper
one. Corn will set a new record. Four
fifths of the crop has been gathered
so the chances of loss from frost are
small. The oat crop is the greatest
In years.
The cotton crop will be 100000
sysS ~ KS AssSstsfy sG.E, 81 "a I--s..s~N-V
Nearly all other crops are reported
very large.
Next month IL Is estimated invest
ors all over the country will receive
nearly $170, 100000 in dividend checks
from industrial, railroad and other
corporations. That will add OF
course, to the money generally in cir
culation.
The record crops are one argument
against a money shortage. because
they mean that the United States will
have a great amount of food and man
ufacturing materials to sell 10 Eu
rope.
Europe, in the meantime, will be
selling material to America, but un'
doubtedly not to the extent 1t did last
year. and therefore will owe Ameri
cans money This will be paid In gold
which will come across the ocean In
bars. The banks will take 1t TO the
United States mints or sub-treasuries
to be stored away in the vaults and
gold certificates will be issued to rep
resent II. Thus several more millions
Of dollars will come into circulation
for business.
This Is what fnanciers cal, "the
balance OF trade" and In such IN In
stance IL would be in our favor" II
the reverse were true, IL crops had
been poor and Europe sold the United
States more than IL bought, the Unit
ed States would have to pay the differ
ence In gold, as 1t did In August, to
the extent of $4,000 900, and the hal.
ance Of trade" would be against us.
The question may be asked why the
treasury department could not help
the banks now as II did In 1908. Be
cause II has not the money. The ex.
pense of digging the Panama canal
is from $2,000,000 to 100000 q
month, and Is a great drain on the
nations ready cash.
II was the intention to build the
canal with borrowed money obtained
from sales of Panama canal bonds.
But for many reasons bonds could not
be sold on favorable terms and Uncle
Sam has been paying his canal work
ers out of his cash drawer. until now
the canal owes the treasury $125,O00,
900.
One of the best reasons why treas
ury officials believe there will be no
money stringency Is that the national
banks are preparing themselves to is
sue $500, 100000 extra currency, as the
emergency currency law provides, IL
they have to. Through the efforts OF
Secretary MacVeagh. banks In most
OF the large cities have prepared
themselves and others are getting
ready. Mr.. MacVeagh believes the
common knowledge that such an i'm
mense sum is available would stop
any general movement to take money
out OF banks and hoard II In stockings.
The operations of the Payne-Aldrich
tariff law for one year show that the
average ad valorem rate of duty paid
on imports OF all classes was 166 per
cent lower than under the Dingley
law, which was in force for the
previous year. The comparison was
made by the bureau OF statistics Of
the department OF commerce and
labor for the years ended June 80,
1909 and 1910
1t is demonstrated by comparison
that more than s100,000.000 worth OF
goods were imported In 1910 unde-
the new law I'm excess OF the total in
1909, under the Dingley law; that the
revenues in the last year exceeded
those OF 1909 by about $50 900 900, and
that the average ad valorem rate OF
duty paid was only 41.49. as compared
with 43.15 under the old law.