St. Paul daily globe., 1893-08-16
THE COMING GRO
A PLAN TO HANDLE 1T WITH VERY
LITTLE CURRENCY,
BY CLEARING HOUSE CHECK.

BY CLEARING HOUSE CHECKS,
To Be Issued in Small Denomi-
nations-A Scheme Calling for
General Corporation = Bank
ers, Merchants. Farmers and
Railroads All Interested-Who
Will Lead the Movement
A correspondent of the GLOBE, who
stands high in financial circles, has
evolved plan for handling the coming
crop. We understand that conferences
of bankers, merchants and railroad 1aen
are being held with view OF consitier-
ing the practicability of the scheme, It
is as follows: @
To the Editor of the Globe.
Within the next three weeks the crops
will begin to be ready to move. The
| marketing of these crops will bring
many millions of dollars into the coun-
try to repay the advances which have
been made in producing them.
The harvesting, threshing and mar
keting is about half the cost of the
wheat crop. Hence, to harvest and move
or market the crops requires, within
the next three months, the use of very
large amount of money.
1t seems to be conceded that the nee
esSary money cannot be obtained from
the usual Eastern sources, and that the
local banks can do but little towards
furnishing the needful in actual cash.
10 meet the emergency, proposition
has been discussed that the banks of
st. Paul and Minneapolis should create
local currency by issuing, on the lines
of the tried plan of New York banks,
clearing house certificates in denomina-
tions of 50. $40. $50 and $50, which could
be loaned to the buyers to be used in
payment of wheat to farmers and of
freights anu charges to railways. and
T thus carry the wheat to market, when
the proceeds would be returned to the
banks, thus putting them in funds with
with which to redeem the local cur
rency.
The question whether this plan can
be worked seems to depend largely upon
the cooperation of three classes, viz:
the banks, the jobbers anu the rail-
ways.
First-Will the banks perfect their
organization and follow the example of
New York and other banks and issue
their certificates for this purpose. This
is question for the banks to decide.
Second-Will the farmers accept such
certificates in payment for wheat? The
answer of this question will depend
probably upon whether the local mer-
chants will accept them in payment
from the farmers, and the answer of the
local merchant will probably depend
upon the willingness or the jobbers of
st. Paul AMI Minneapolis to accept
them in payment from the local mer-
chants. This a question for the jobbers
to decide.
Third-Will the railways accept this
currency for freight? This is question
for the railways to decide.
Hence, it would seem that if this plan
of meeting the emergency is acceptable
10 these three classes it could probably
be successfully carried out. The prac-
ticai decision rests upon so few it would
seem that the plan should be adopted or
rejected speedily, and if adopted put in
execution in season to meet the necesSi-
ties which are clearly not more than
few weeks distant.
But each Individual of each class is
so intently engaged in his individual
affairs that it seems impossible to have
matters of general and vital Importance
considered. As far as the writer is able
to Judge by expressions of those he has
come III contact with, the general out
lines of the plan would be approved.
but the banks seem to wait an express
sion from the customers and the Gus
toners are awaiting the lead of the
banks