Jasper County Democrat, Volume 6, Number 22, Rensselaer, Jasper County, 5 September 1903 — POLITICS OF THE DAY [ARTICLE]

POLITICS OF THE DAY

Moving th* Crop. Some Western newspapers are much exercised about where the money is to come from “to move the crops;” they fear, tn view of the panicky condition of the stock market, that the New York banks will have all they can do to take care of their Wall street customers. One would think, to hear these Republican organ* playing the same old tune, that the New York bankers and Wall street furnished every dollar to pay for each bale of cotton, each bushel of wheat and what corn the farmer* dispose of. Not a dollar of their own money, necessary to move the crops, 1* furnished from that source. The money which is paid to the farmers for their crops comes from the Western banks and is the deposits of the farmers and the business men of the West. During the spring and summer months the surplus of the Western banka is kept on deposit with their correspondents in New York and the other money centers, and they receive the going interest on their dally balances. The New York banks loan thia Western money to the Wall street operators on call, or short time, on stock exchange securities. When the crop-moving time comes the Western banks begin to draw their balances from Naw York to supply the local demand of the crop buyers. That brings about the annual old chestnut of Wall street furnishing the money to move the crops. In.fact the Western banks are only calling for their own money, not a dollar of which the Wall street banks can refuse.

In ordinary years this money movement makes the rate of Interest in New York advance In the fall, as an inducement to people who have unemployed funds to loan it on stock securities and replace the Western money, and in a few months the flow of funds is again to the financial centers through the ordinary channels of trade. The farmer selling his grain and paying his bills to the retail merchant, who pays the wholesalers, and the latter the manufacturers. When speculation is rampant, as it has been this year, the demand for money is greater, and the recall of the money to the West, makes It more difficult for the banks to finance the Wall street demand. When October arrives it may therefore be expected that money will be dear in New York, and the speculators will have to pay high rates. There is more than enough money to supply all the demands of business, but not enough to furnish the millions tied up in loans on stock collateral in Wall street. In former times the Southern and Westtm banks were borrowers of extra funds in New York to reloan to their customers who were buyers of cotton, wheat and otiher cereals, but that time has gone, never to return except to a very small extent, and then only if the New York banks have more money on hand than they can use to advantage in loans In their own locality. Be when the pinch comes and the cry goes up that the New York banks must have “money to move the crops” and the Secretary of the Treasury is called upon to aid them, the cry is really for money to move the Wall street crop of undigested securities that the trust promoters have been so assiduously cultivating. In the stress last fall every dollar that could be by any interpretation of the law be diverted from the United States treasury was loaned or deposited with the New York banks, which they have never repaid. The whole power of the administration has been used to aid the stock gamblers, and the promise is made that more and even illegal aid will be extended to them.

The present trouble in Wall street iij because the New York banks are preparing for the repayment of the Western money they have been using and are adjusting their loans to meet the emergency that they know will later encompass them. The financial magnates of Wall street see that the United States treasury has about exhausted all its resources to replenish the dwindling reserves of the Wall street bankers, and the overloaded speculators view with apprehension the shrinkage in value of the paper fortunes they possess.

The Republican idea that the government must aid Wall street, and that the financial affairs of the United States must be run according to the dictation of the big bankers, Is meeting its own reward. Unfortunately, thousands of honest folk wiU be ruined and the business of the country disrupted by the partnership of the financial and trust magnates with the Republican administration.

Financial Legislation. The new currency and financial bill which la being concocted by the senatorial coterie and has the presidential sanction will meet with considerable opposition both from Republicans and Democrats before ft becomes the law, if It ever does command a majority of both houses of Congress. The self-ap-pointed sub-committee of the Senate finance committee, consisting of Senators Aldrich, Allison, Platt of Connecticut and Spooner, have undertaken to pass a bUI to help the trust magnates, Mbs-Wall street speculator* and the }New Tort bankers out of a tight place.

The bill they are now so Intent on was drawn early last summer by the most able attorneys of the money power. It was attempted to be rushed through the Senate during the closing days of the last Congress, but Democratic opposition developed and Senator Aidrich, Its sponsor, had to abandon it The peculiarity about that bill and th* present one that is to take Its place 1* that, but few outside of those Interests above mentioned appear to think it necessary or desirable. When the object of the bill Is considered, which is to give the New York banks the right to keep the $150,000,000 treasury surplus and to replace United States bonds, wihlch the treasury now holds as security, with other city or railroad bonds apd to not only continue the deposit of the Internal revenue collections In the favored banks, but to also deposit likewise the custom receipts, It Is no wonder there is no public demand for the measure. The bill which Is now being concocted by the Senate committee has another feature that will be opposed by many Republicans and probably all the Democrats, namely, to allow tihe national banks to Issue credit currency.

There is no demand from the people —business men, farmers, or workingmen—for more currency and it la certain they are not favorable to legislation in the interests of the New York bankers, which compel them to pay taxes to be loaned to the banks.

Representative Hepburn of lowa, one of the few men of ability on the Republican side of the House of Representatives, was in Washington a few days since and an interview with him published fn the New York Post indicates the feeling in the Western States on this proposed legislation: “Mr. Hepburn says that there la *no scarcity of currency,’ and declares the view that there is a great draft on New York for money to move the crops not well founded. The only danger, he says, would come if the producers of the West became distrustful of the eastern banks, and so withdrew their money too rapidly. This, he believes, is prevented by the present rigid system of bond-secured circulation.”

But the senatorial coterie, who have also persuaded President Roosevelt that help must be furnished Wall street, will be backed up in all they claim by the whole trust interests. Every banker, State or national, will be urged by the most adroitly worded appeals, to join in bringing pressure to bear on Congress to pass the bill and the provision for asset currency—rubber currency, as Representative Cannon, who is slated for Speaker, called it—'Will be so fixed that the country banks will have an opportunity to get some of the spoils. Mr. Cannon is said to have modified hie views and if not favorable to this “rubber currency” at least will not oppose It Threats of defeating him for Speaker may have caused this change of sentiment. It was not difficult for the New York bankers to get Secretary Shaw into the conspiracy, for all his manipulation of the government funds has been in the interest of Wall street What has induced President Roosevelt to favor the Wall street program can be judged by the exigencies of his political ambition. Those voters who believe that legislation in the interest of Wall street and the bankers is against the interests of the people will have to bestir themselves and make it plain to their Representatives and Senators that they will bold those responsible who vote for such legislation.

Divided Counsel*. Ths Republicans are having troubles of their own these days, and on questions that they should be most united about, and the numerous pilgrimages to Oyster Bay of the leaders of the different factions does not seem to clear the way for united action. First we are tol<T that Senator Aldrich Mid his committee have agreed upon a financial bill which is generally acceptable to Wall street and is approved by President Roosevelt. Then we hear that Uncle Joe Cannon Is mul'ah and does not fall In with the program. He Is “agin rubber currency” and does not think any finao< clal legislation necessary; “we have the best currency on earth,” and so on. Strange to relate, Rockefeller and Morgan agree with each other that the Aldlch bill will save the country and. Incidentally, of course, Wall street. They are very Insistent that the loans to the banks by the United States Treasury, without Interest, should be made legal and, if possible, permanent. They also demand that the re-

ceipts from customs duties should bo deposited In the banks, as the Internal revenue taxes now are. This latter part of the program Is said to be especially objectionable to the prospective Speaker, and Congressman Fowler In an interview says that Uncle Joe prefers the Fowler asset currency bill to the Aidrich bilk With WaU street and Congress divided on the scope and plan of legislation, and the Republican leaders divided, there Is a chance that the Democratic minority may have to decide the question of legislation or no legislation. Fruit should be a large portion of one’s breakfast." •