Saturday news. (Watertown, S.D.) 19??-19??, 1915-09-23

SSuI III Si4 Vi Gil ShSl v q
vest that should bring prosperity not
only to the producers but to the whole
nation, disaster is threatened"
Mr.. Window IA working on a plan
for a flexible volume of currency that
would automatically respond to the
demands of trade, but was called
from his earthly work a day or two
after delivering that address.
He had noticed the fact that these
panics had always occurred at one
certain season of the year, and under
certain well defined conditions.
Spectators Harvest Time.
If Spectators wanted to corner the
market, that was the opportune time.
Hoard, engage, tie up as large a vol
ume as possible; scare depositors
who would withdraw their deposits,
together with the increased demand,
made the manipulation of the market
easy. h
The crop of 1890 was a record
breaking one both in yield and farm
value, and no provision had been
made to increase the medium Of ex-
change. 1t remained fixed. The
money of the nation was fully en-
ployed in other industries; the farm
ers had to have money to meet their
obligations. With a big crop, credit
ors are persistent collectors. What
was the result? The farmers bid up
in pounds of produce, and wheat
dropped 80 cents per bushel. The
business men bid up in interest, and
on August 2Sth it was bid up on Wall
Street to $50 per cent; stocks fell in
value and a disastrous panic was
barely averted.
WINDOWS Clear Vision.
How? Mr.. Window says, Had it
1 not been for the peculiar condition
which enabled the United States to
disburse over $75,000,0O in about
two and a half months last autumn.
/ am firmly convinced that the strin-
geGcy in August and September would
have resulted in widespread finan.
cial ruin
In 1893 we had a secretary of the
treasury without Mr.. WINDOWS Wis.
ion, and the panic was o n
We have had several near-panics
Esince then, and one real one in 1907,
called "the bankers panic" The
press reports Indicated that the spec,
ulators were the only one affected
/ know better from personal exper
fence. was selling my barley fol
80 to 95 cents. Without warning and
over night there was no money to buy
with, The eastern bankers refused tc
honor drafts, in violation of the Ma
tional Bank Act, and barley fell tx
45 cents. My obligations remaining
the same, ! could pay less than half
In other words, it took twice as much
barley to buy a dollar.
Another Emergency ~ Lesson.
We are now having another annua
emergency ca object lesson. How
many more will it take to wake til,
people up? There has been an emo
nous expansion in manufacturing
more especially in war munitions
that has required a vast amount o
capital, an Increased demand.
A record balance of trade In gu
favor, estimated for the year at owe
$1,000,000, 900, a record breakfn
crop also; wheat alone estimate,
around 100000 900 bushels and tn,
marketing of that immense crop j
now on. What provision has bee
made for an increased volume Of sth
medium of exchange (moneY I
meet this increased demand?
From the monthly reports of thelset
retary of the treasury we find tina
from December 1st to July list tn
4 total volume of money in circulation
had decreased SAT, 000, 900. The vo
ume Of gold had Increased by $4,000
900 presumably from importsl. Gu
national bankers have absolute co,
troll of two kinds Of money; nations
banke notes and federal reserve ban
notes.
Concerning Bank Notes.
During this same period, Of TIL
money OF which they have full COZ
trial, there was a net decrease In eli
culation Of s1~7S.193,l3s. Great il
creased demand met by q greatly d,
creased supply. This brings us i
to the semergencyp to move or
crop period.
For July, tae irst harvest montl
instead or an Increase, theIeE4zwas
decrease OF s2l,435,.6o4. For Angus
the second month there was an y