The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-04-17
FARMS AND FINANCE.
Professor DenslOw Tells the Union
League the Great National
Need.

Professor Van Buren, Denslow, Of New
York, addressed the Union League Club
last night upon the subjects OF Bank
Currency, Farm Mortgages aud the
Farmers Alliance. The parlors were
filed with prominent Republicans. Ex-
Judge John A. Blair introduced the
speaker IN one Of his characteristic
speeches
Professor Densiow declared that the
Farmers Alliance movement, intelii-
gently interpreted, was only a call from
the people for the establishment Of
Federal, State and local system Of bank
ing on a more sound and cosmopolitan
basis than has yet been attempted; but
the Government should constitute itself
leading agency to the farmers, and loan
them money on deposits Of grain; es-
tablish its banks in every county, and be-
come the banker of the farmers, issuing
a greenback currency which shall be the
only currency Of the country.
NOT A FACTOR.
Inc Professor did not think the Farm
er's Alliance would ever amount to much
as a factor in American politics, but
urged that it was well for the Republican
party to remedy the evils complained of
by the farmers. There was no need, he
urged, OF loan upon the farmers crops.
All the crops the farmer produced were
cash, and there was no more need of a
loan upon them than Of loan upon cash
1t was the farmer who hadn't any crops
who needed relief.
II Is mainly the use of the banks credit
system, he said, that moves the crops and
the merchandise. The grain merchant
In the West puts upa narrow margin Of
deposits to secure n purchase Of grain.
The bank takes the grain certificate and
completes the purchase with ils own bank
credit, of which the buyer and seller Of
grain get the benefit Of as If 1t were real
money. The farmer gets check or a
credit on the books of the bank. which Is
instantly convertible into cash. The
latter gets the apparent ownership of
grain. OF which the bank holds certih-
cate of storage.
WORKING BACK.
THE same process goes on in the east
between the bank and the manufacturer
of cloth, etc. In the end the grain pro-
ducer is supplied with these goods, and
the producers Of them consume his grain.
At about the same time or earlies. the
two bank credits, representing dve-sixths
Of the value Of goods and grain cross each
other ia the New Y ork clearing house, or
IN some intermediate bank in the form of
two checks. The credit of the bank has
moved the crops without the help Of
money"
The speaker said that foreign capitalists
controlled the banking houses of this
country. Some cnange was necessary IN
the legislation of the United States TO
secure sufficient aggregate of capital, IN
corporate form, to permit competition on
equal terms with European bankers.
What the farmers wanted was really
that mouey should reach them as
borrowers at q low rate OF In
terest Il did so during the recent
civil war. and farmers were then
more prosperous. They were enabled 10
pay of the mortgages on their farms.
since the resumption of specie payment
in 1880, the money Of the country had
been as good as gold. in the agricultural
sections the difficulties of borrowing 1t
had bean exactly as great as If it had
been all gold