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Excerpt from The Bank and the Treasury: Bank Capitalization and the Problem of ElasticityWhen, in the early months of 1902, Mr. Shaw took the Treasury portfolio, the country was passing through a period of marvellous financial activity. Four yearsMoreExcerpt from The Bank and the Treasury: Bank Capitalization and the Problem of ElasticityWhen, in the early months of 1902, Mr. Shaw took the Treasury portfolio, the country was passing through a period of marvellous financial activity. Four years of commercial and industrial consolidation, four years of trading in new corporate issues, on margin, had absorbed hundreds of millions of banking capital in speculation. Moreover, this encumbering of current funds had taken place at a time when commercial and industrial expansion was multiplying its demands on our banks for credit accommodation. True, on May 9, 1901, an unexpected corner in Northern Pacific had brought speculation to a temporary standstill. But the quiet which followed had been utilized by the large banking interests to get together needed financial support with which to launch United States Steel and other new gigantic promotions. From two to three thousand millions of new issues had to be digested and assimilated by the investing public before our institutions of commercial credit could sufficiently relieve themselves from speculators loans to meet the growing demands of trade.After 1898 the financial situation was at all times pregnant with danger to business.About the PublisherForgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.comThis book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully- any imperfections that remain are intentionally left to preserve the state of such historical works.