The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1892-02-16

Do We Need Banks to Accommodated
It Takes Less Money to do Busi
ness on o. Cash Basis
Than on Credit.
Mr.. EDITOR:-Do we need reserves in
finance? If so, why SOL What is
money created for! 1t is credited by
the government of the people to assist
in making their exchanges, pay taxes
and debts. Money has no other func
ton. Money is not wealth. 1t is a
token, a sign of the substance. 1t will
not pay taxes, debts and make ex-
changes locked up in reserves. Money
bears the same relation to our indus
tries that blood does to the human sys-
tenn. In a healthy man the blood fills
every capillary vessl. The capillary
vessel of finance is the peoples pockets.
When the finance of a nation is in a
! healthy condition the money is in the
pockets of the people. A congestion of
blood to the head means the capillary
vessels II depleted. Congestion of
money to head centers means there ia
but little money in the peoples pockets.
Deplete the human organism of blood
and you weaken every energy. Con-
tinue this depletion and you will de-
strOy the human organism. Retire the
circulation of money and you weaken
! all the energies Of o IT Industries. Con-
tinue this depletion and it leads to in
dustrial stagnation, decay and death.
! Blood is created to circulate. When
congested Gn head centers) in produces
fevers in congested parts and lacitude
in the parts depleted. When money.is
cOngested to head centres it produces
| feverish and unhealthy action (gamb-
ling and speculation and lasitude
among the people.
The individual is oaly healthy when
the blood circulates freely to every
part Of the human system. Our indus
tries are healthy only when money
flows freely into every channel of
trade. When money is concentrated
into head centres it Is a sure sign it is
scarce among the people. AS conges-
ton of blood to any part 0t the human
organism prOclaims a diseased COndi-
ton of the circulation, so congestion of
money to head centres prOclaims our
industries are in a diseased condition.
The congestion of blood is an abnormal
condition, and the congestion of m )ney
is an abnormal condition. What is
blood created for9 To circulate and
give strength and life to the human
organism. What is money created
for? To circulate and give life and
evergy to our industries. Does the
blood need reserves or something to
redeem it to give value to its healing
and restorative power? DOesa correct
monetary system require reserves and
rrexioen1eas To~nGketh2money circulate
and perform it's functions? What
benefit is blood to the human system
that does not circulate! What benefit
is money to our industries that is
locked Upl As money is created by
the people to make exchanges, pay
d 9bts and taxes, how can it perform
these functions locked upG Dear sir,
doesn't banks need reserves! Do we
need private banks. If so, why SO?
The people, through their representa-
tives in Congress, will issue full legal
tender United States notes in sufficient
quantity to do the business of the
country on a cash basis. This money
will go into circulation by paying the
obligations of the government to the
people. Once in circulation it will re-
main there. Why have private banks?
eve want private btnks to accom-
modate our business men" If we have
a sufficient volume of money put into
circulation to transact our business on
a cash basis, business men will not
need any accommodation. Our bust
ness being on a cash basis, the farmer
sells for cash and buys of the mer-
chant for cash and the merchant buys
of the wholesale man for cash and the
wholesale man buys of the manufac-
turer for cash. Each starts with a
cash capital and each pays cash, and
their money is being continually
turned. Where is there a need of
banks to accommodated Can any one
tell7 Under our credit financial system
there is a demand for banks to accom-
mOdate business men. The farmer
buys on credit, the merchant on credit,
the wholesale man must borrow to
carry his customers. Whoever carries
custOm ers must borrow or have alarger
cash capital than if all transactions
were in cash. The farmers out of debt
they sell their produce for cash when
there is q demand for it; the warehouse
man buys it because there is a demand
for it, pays cash and sells at once to
the consumers for cash. Under this
cash system each man starts with a
cash capital, buys for cash and sells for
cash. Do you see any need OF private
banks to accommodate? The armer
out of debt and money IN their pockets
they will not sell until there IS a de-
mand. When the farmer IS IN debt, as
he is now, he is compelled to sell before
there is a demand for his produce. inns
cOmpells the warehouse man TO buy
and hold for the market. and this re-
@llires a larger amount of money than
q takes to buy for cash and sell at
once This c0mpels the warehouse
man tn borrow and this calls for banks
- accommodate. tits individuals and
classes being in debt that compels capi.
talists to have a large cash capital to
buy and hold, AS long as individuals
and classes are in debt they are forced