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


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, impersonal
view of the treasury department.
whose hand Is on the public pulse OF
the nations financial and business life,
and represents the opinion OF officials
who constantly watch for symptoms Of
any stringency.
In their opinion, the danger mark, II
! there actually has been one during
several months past, has been left
astern.
Primarily the banks saw what
looked like a money shortage coming
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 soil 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, fnanciers say.
Money Is plentiful I'm England and
on the continent of Europe. That is
always said to be a good sign In
making prediction for this country.
Neertv every. crop in this country
.fu To- rev cd n hA htit r
one. Corn will set new record Four
ffths of the crop has been gathered
go the chances OF loss from frost are
small. The oat crop Is the greatest
In years.
The cotton crop will be 100000
bales greater than II was last year
Nearly all other crops are reported
very large
Next month 1t is estimated invest
ors all over the country will receive
nearly $170,OoO,000 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 vii
rhave a great amount OF food and man
nufacturing materials to sell to Eu
rope.
Europe, in the meantime. will be
selling material to America, but un
doubtedly not to the extent II did las'
year, and therefore will owe Amerl
, cans money. This will be paid In golt
which will come across the ocean II
bars. The banks will take II to tn
{ United States mints or sub-treasurie
to be stored away in the vaults ant
|. gold certificates will be issued to rep
resent It, Thus several more millions
: OF dollars will come into circulation
for business.
This Is what fnanciers call "th'
balance OF trade" and In such an In
/, stance II would be I'm our favor" |
!. the reverse were true, II crops hat
! been poor and Europe sold the United
States more than II bought, the Unit
ed States would have to pay the differ
], ence I'm gold, as 1t did I'm August. t
the extent of $3,O00.000, and the hal
ance OF trade" would be against us.
The question may be asked why th'
, treasury department could not he'll
|, the banks now as II did in 1908. Be
cause IL has not the money. The ex
pense OF digging the Panama cana
:, is from $2000.000 to $4,000.O0O
month. and is a great drain on Thu
, nations ready cash.
1t was the intention to build TIT
, canal with borrowed money obtained
: from sales OF Panama canal bonds
But for many reasons bonds could no
be sold on favorable terms and Uncl'
Sam has been paying his canal worn
ers out of his cash drawer, until nov
: the canal owes the treasury $l25,OOo
: 900.
One of the best reasons why treas
ury officials believe there will be NJ
money stringency Is that the nationa
banks are preparing themselves To Is
sue $500, 100000 extra currency, as tn
| emergency currency law provides,
they have to. Through the efforts o
Secretary MacVeagh, banks In mos
OF the large cities have prepare
r themselves and others are gettin
{ ready. Mr.. MacVeagh believes tn
: common knowledge that such an in
2 mense sum Is available would sto
any general movement to take none
1 out of banks and hoard 1t In stockings
2 The operations OF the Payne-AldricI
3 tariff law for one year show that tn
e average adj valorem rate OF duty pai
r on imports of all classes was LOO pc
cent lower than under the Dingie
law, which was In force for TN
previous year. The comparison wa
> made by the bureau of statistics
/. the department OF commerce an
l labor for the years ended June 81
1 1903 and 1910.
} II is demonstrated by compariso
? that more than s100,000,000 worth o
: goods were imported in 1910 unde
! the new law in excess OF the total Il
1909, under the Dingley law: that III
7 revenues in the last year exceeds
. those of 1909 by about 30,000.OOO an
} that the average ad valorem rate O
duty paid was only 4l.49, as compare
with 43.15 under the old law.