The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1893-08-10
TRANSACTIONS BY CREDIT.
August Belmont Tenders Few Timely
Suggestions on Thie Point.

From the New York Times.
1.-THE country is not in an unsound
condition." said Mr.. August Belmont to
a representative of this paper yesterday.
There has been no great public calam-
ity, or failure OF crops in America Bust
ness and commerce have been conducted
on conservative lines, and although a
few local speculative concerns have col
lapsed there have been no large invest.
ments-as compared with the total bus
mess OF the country-in unproductive
properties.
The currency system, if persisted in,
promised to lead tho country into an
unsound condition, but in demanding
the repeal of the Sherman law, and
calling halt, as it is doing, for careful
consideration OF new departure, tho
country stands far away from any dan
ger and upon perfectly safe ground. IL
the boarding of the money and the
blocking of the channels Of credit con-
tinue, those who are responsible for
this work-and practically everybody
appears to be doing this-will simply
wreck their property, and without rea
sonable or proper cause.
ut is the duty of every man, high
and low, to do all he can to allay fear
and to increase as much as possible the
methods OF adjusting transactions by
credit. Merchants should endeavor to
clear their receivables among them
solves as much as they can, and the
banks should accept new receivables
for maturities when they can instead of
simply extending paper or forcing pay
ment.
The present boarding and draining
out of deposits, especially Of currency,
fro hn hny, Nd oil
tories, by which a premium upon cur
rency of all kinds is now created, has
much to do with the closing down of
great many factories. Sound con-
Germs, with plenty of raw material on
hand, in view of the difficulties Of OBJ
tanning the money for their payrolls,
are closing down, and the laborers are
forced to draw from the savings banks
for their needs. This, in my opinion,
need really not be.
II observe that in some localities they
are adopting system Of credit for pay
ing off their hands, paying them in
small demand checks, which are circu-
lating through the stores in the towns
in which their holders live. In fact,
this system is in vogue among some
large concerns even in good times. But
| believe that the present juncture re-
quires much more than that. Many fac
tories could be kept oyen il the en-
plOyes were paid by system of pay
warrants.
Ito give you an illustration, large
concern could actually assist in easing
up this feature of the present situation
by putting in circulation very fair
local circulating medium for its own
locality. AS you know, our statutes
give the employee first lien. in case of
an assignment of the establishment for
which he is working, for his wages or
salary. A note could be issued in a
form, roughly sketched as follows
NEW Yonx Xur 8 S,s
on demand, at any time after sixty (GO)
days from date, without grace, we promise {:
: to pay to bearer the sum OF ::
: with interest at ak CO.. per cent per annum,
interest to cease after ak months from date.
{: This obligation is issued as security for, ::
: and in payment Of. certain wages due
: RICHARD ROE.
!: and OH payment hereof such claim to be sat ::
: TIE tBlankl MANUFACTURING !:
{: COMPANY.
"These payments. as we might call
them, could be issued by firm or COM
pany in small denominations of 81, So,
IS and $40, as the Giro instances required
(the smaller the better), paying frac-
tional amounts of less than 81 in cur
rency. These warrants would be the
best sort OF promissory note-practi-
cally as good az builders lien-and
would circulate in neighboring country
towns ard stores, even in the cities: and
probably before maturity would be
sought for as a per cent Investment
and in lieu Of currency which is now so
tnobtainable. They should be issued
in portable form and on sufficiently
good paper To stand the wear and tear
of circulation.
This suggestion | have to day sub.
nitted to another of the leading manu-
facturers and bankers, and have found
1t very generally Endorsed. 1t would
simply result in this, that. so far as the
pay rolls are concerned, If this metho
were adopted, not single factory need
lean upon the banks at present, nor
upon currency for their pay rolls 1t
would largely mitigate the distress now
falling upon the working people, whic h
the shutting down OF so many concerns
is bringing about.
other reasons this method of relief
would naturally no. appeal But so
many arc simply stopping on account of
the difficulty of obtaining money for
their pay rolls that | present til is sug-
gestion at the present time for tho
earnest consideration of every manu-
facturer ana employer"
If YOU have sour S stomach and feel
bilious. and yOur head arhac talo a