The times. [volume] (Richmond, Va.) 1890-1903, 1892-07-20
rHE roof or THE DISEASE.
The Balance of Trade Against the South
and West.


and West.
In the South and West the farmers feel
and know that something IS wrong, but
they do not seem 10 be able 10 see Just what
the trouble IS They know very well that
cash is scarce with them. aud that when
they desire TO borrow interest IS hlgb.
Many of them have come 10 the conclusion
TINT the cause Of their difficulties
is a scarcity of the circulating me-
dum, and hence they are clamor-
ing for an unlimited issue of light
weight silver dollars. A glance at the bank
statements of the country shows that these
silver inilatiOnists are wide OF the mark In
their diagnosis In New York money IS so
abundant that it is going begging at the
lowest rates of interest, and yet there IS
more demand for II in New York than IN
other places. Some Of the rural banks OF
Maryland have sent hundreds of thousands
of dollars TO New York on deposit tor the
2 or per cent. year that IS allowed Tor II.
Most of the banks of Maryland have more
currency than they know what TO do with.
and all the commercial centres are con-
gested. What, then, ID the cause of the scar
city IN the West and South More currency,
propOrtiOnately. is needed in these rural
communities than in the East because there
all payments are made in cash, whilst here
the greater majority of debts are paid by
bank checks. And yet they cannot keep
their currrncy. Ii is all drained toward
New York or some other city. The reason
is that what is usually called the balance
of trade" is against these communities.
They buy more than they sell and have 10
pay the difference IN cash. If a man has
wheat crop or a cotton crop 10 sell he finds
no difficulty in getting cash for it. All the
marketable products will command cash,
but if il takes all that the cotton crop or
wheat crop fetches TO pay the fertilizer bill
the bill for shoes clothing. blankets and
ironware IN the city no cash comes back 70
the farm.
The Southern planter and the Western
farmer are subjected TO the drainage OF
Federal taxation. and the enormous volume
of this drain IS not appreciated. II is sui
fcent 10 withdraw the entire circulating
medium from a Southern State in an incred-
IDLY short time Take the matter of pen
sions alone. Any one of the Southern States
has 10 pay several million of dollars into the
treasury for this purpose. This is with
drawn from these States absolutely and put
into circulation In the Northern States. u
We add TO this the amount which the tarln
withdraws from the South and West
and hands over 10 the protected manufac-
turers of the East, it will be readily per-
oeived why money cannot remain III the
States which are now clamoring for 1t I'M
less the farming industry is SO prosperous
as to overcome all The truth is that the
remedy for the troubles of which the West
and South complain lies more in an eco
nomical administration of government and
an adjustment of taxation upon that basis
than in any wild monetary schemes Of tink-
ering with the currency. The scarcity of
currency is the symptom: Let the people.
like a wise physician, strike at the root of
the disease and the symptom will disappear.
Baltimore Sun