The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-13
WHY NOT ISSUE cHEcKsP
The Present Crisis and the Power Of
the Banks to Relieve the Pressure
Upon Our Community

fact that the total amount of money in
the country is considerably larger now
than it has been in years, and yet we see
so great scarcity Of money in actual cir
culation thatit is commanding premium
| as high in some instances as 3 per cent. il
not more. This anomalous condition 81
affairs has forcibly impressed even the
| most careless, and has attracted the earn
est attention of those who usually give
little thought to business and financial
matters. We see the country, as stated
In the message Of the President, in pos
| session of all the materials and ground
work of prosperity, and yet it is involved
in the greatest distress and depression
which is bringing loss and ruin
| to all commercial, agricultural and
industrial interests. The causes of
the evils from which we are suffering are
known to all. Initiation, extravaganza,
and unwise legislation upon finances and
the tariff have brought about their nat
ural and logical result and the country is
now passing through crisis such as
none Of the present day and general ton
has ever witnessed. Chief among these
evils is the sO-called Sherman silver law,
a law which is denounced by the platform
| OF the Democratic party as a "cowardly
makeshift,' law which is not only I'M
| just and iniquitous in thati it compels the
| government to provide a regular and
steady market for the product of one
| class of it's citizens 1.-THE citizens of five
| states whose combined population is less
than the state of Georgia), when 1t is I'M
| able to supply equal markets for the pro-
| ducts Of all, but which also commits this
| government to the stupendous folly of at
| tempting to keep up and maintain the
value of this prOudct in the face of the
Itconcerted opposition of the balance of the
IL civiliZed world Such an attempt can
NNFaIfr sr,f co.
| only could have been, but, as a matter of
fact, were actually foreseen and
predicted by eminent economists
| and statesmen both in this
| country and abroad among whom was the
| man who is now President of the United
| States. The first effects of this law were
the creation of widespread apprehension
and alarm and the destruction of that
confidence which is essential to the eXis-
| tence of all business dealings. AS a re-
| suit vast sums have been withdrawn from
| circulation, by the timid and the specula-
tor alike, and boarded up in safety boxes,
| stockings, and chimney corners, causing
| the serious scarcity in the circulating
medium from which we are now suffering
so acutely, and which is paralyzing all
branches of trade, industry and com
merce, and threatens to leave the crops to
| rot in the field for lack of means to move
I
tries are closing down, throwing thous-
ands Of workmen out of employment, be-
cause of their inability to obtain the ready
money to meet their pay-rolls, and bust
ness is either badly crippled or brought to
\ a standstill because it can only be con-
| Quoted on cash basis.
What are our banks doing and what
can they do to help us in this emergency2
| IL is known to every one that no bank
! keeps on hand at any time enough money
to pay of all its depositors at moments
| notice. If il did it could do no business,
and would be not only useless but actually
| pre1udicial to the welfare and progress of
a people because it would have locked up
| funds which could be loaned out to build
up enterprises and enhance the prosperity
| of the community Our banks have for
months been terrifying themselves and
accommodating cash which might now
be put in circulation to certain
extent but for the fear of run
upon them by their depositors, and for the
steady drain upon their deposits, which
goes to increase the accommodating boards
and thus intensities the acuteness of the
situation. 1t is these steady withdraw
ais and secretions and the senseless runs
| made without any reasonable ground that
has caused so many perfectly solvent in
stitutions throughout the country to close
their doors. Our banks here are known
| TO all to be perfectly solvent and to be
| carefully and prudently managed. They
| have come to the assistance of the
people by showing the utmost Gberality
| in granting renewals of existing
| loans, but they are able to do avery little
in the way of making new loans because
OF the reasons given. Meanwhile we see
a steady drain of currency going ont Of
the community, for this is a distributing
point for a large section of the country
we see merchants and commission men
unable to purchase supplies except against
actual shipment of currency; we see
the great Chicago and Kansas City pack
ing houses instructing their agencies
here to make no deposits but to remit all
| receipts in currency by express to the
| home offices and we see and hear of
other similar drains upon our supply of
| currency in this city. All of this money
! comes out Of the reserves of the
| banks. What are the banks going
| to do about it? Are they
| going to sit quietly by with folded hands
and see their supply depleted and bust
ness forced to suspendl Is this wise2
| Is it true bankingl The community is
wholly dependent upon the banks, and
the time has come when for the protec-
| tion of the community the banks should
| take decisive adtion to check the steady
| outflow Of currency, and to relieve the
| pressure upon our business interests. 1t
is respectfully submitted that the associ-
ated banks of Savannah can easily Issue a
substitute for currency which would be
received readily and would pass current
! ly not only in Savannah but through most
of the territory which is tributary to it.
| There is a technicality in the way of this
issue being made directly by the banks,
| but there is none in the way
of their being issued by
the Savannah clearing house. Let the
| clearing house issue certificates or checks
| payable, say, ninety days after date,
without interest, in such denominations
as may be desired, preferably bills not
over $50, and in such amount as may be
found necessary. To secure these let the
| banks of the city combine together and
| pledge themselves to the clearing house
or to its officers as trustees, each bank as
Stunning pro rata liability for the amount
of the issue 1t draws out giving its note,
secured by sufficient collateral, for this
purpose This would place behind the
clearing house bills not only the collat-
eral deposited by the respective banks,
but the entire capital and surplus Of each
bank would form reserve security to
protect the bills drawn and issued
| by it. There is no doubt that
such bills would take the place of, and
pass as readily as currency all through
this section, for there is no one who has
the slightest doubt that all our banks are
| thoroughly solvent and that their only
| present trouble is the difficulty of obtain