chapter  Chapter XV
21 Pages

Outside Criticism on the Causes of Disturbance in the Money Market

ByRobert E. Wright, Richard Sylla

Speculation is carried on in all markets upon a large scale; and the extent of it fluctuates, according to circumstances, between the stagnation point as one extreme, and the rampant activity which is itself the primary cause of panics, as the other. There is an infinite number of circumstances which may occur to upset the best arrangements and the most accurate foresight of those engaged in commerce, which is compensated for by the large profits realized by such as are fortunate enough and skilful enough to weather the storms. The number of persons who consider themselves capable of writing upon currency questions, the Bank Act, and the various branches of commercial practice, is legion. The unnecessary fuss that some people are always making about the Bank not keeping a sufficient reserve is exposed when this extreme sensitiveness of the discount market to the gold movements at the Bank is examined.