Arizona republican., 1897-09-29
MOVING THE CROPS.
Need of the Cotton Growing States
 for Currency.

Washington, Sept. 2S-Deputy Con- troller of the Currency Coffin, in dis cussing recent advance in money rates in New York, said to a Star report CT this morning:
 Some of the recent sharp advance in rates of interest on demand loans in New York is no doubt due to specu- lative manipulation of the stock mar ket, but I think the impulse to this upward turn has been given by the heavy withdrawal from New York of funds for the legitimate purpose of moving the cotton crop TOW coming to market.
 ''As resident of South Carolina familiar with the movement of this crop I have for years observed it's eff feet upon national bank statements. as we'll as on the money market in New York, during the month of Sep tember. As a rule the rates of in- terest advance about this time, and in some years have approached the dan ger line, and while the movement of the wheat and other great crops has contributed to this effect, still I think the movement of the cotton crop has been the main factor for this reason.
 "The average value of the cotton yield is about $300,0O0,0O0, and it is practically marketed between October l and March 1, or within a period of five months, but it is peculiar in this respect, that only about one-ninth of the entire crop when this is 5000, ,OOO bales remains in the section where it is grown. Of the remaining eight ninths about 100000 bales are ship ped north, where it is manufactured, while about two-thirds of the entire crop are exported from the United States.
 'The rapid removal of so large a proportion of this great product with in so short a period of time requires large amount of actual currency. for most of the cotton is paid for in interior towns at the south with spot cash. As the cotton growing region is not densely populated, the accum- ulation of banking capital there is not sufficient to provide the enormous amount of money needed for a few l months to move the crop, and for this reason the southern banks have to borrow largely from banks in oth- CT sections during this crop period. This is reflected in national bank re- ports for the past few years. When the borrowings of the state banks in these states are added to those of the national banks, and it is understood that most of this money is borrowed from New York, it can be seen how potent a factor the cot | ton crop movement must be in af- ! fecting interest rates in New York.
 These figures I think, too, show 1 how vital an interest bankers, mer- 1 chants and farmers in the cotton i growing states have in currency which would be elastic If any plan could be devised under which the southern banks could issue additional currency equal to one-fourth of theil capital stock during the cotton sea. son it would be a Godsend to thai
 section. For it would enable the
 banks there to furnish the money
 needed without outside aid, and free
 from the cost Of interest now paid
 on borrowed money, and nationa banks in all other sections having the same privileges, the result would be
 to make money more abundant anG ! cheaper, and to relieve the New Yorl
 market of the annual strain now pu
 upon it.
 "On October 6, 1896, the capita
 stock of the national banks in the eight states named was about s39. 100000. Could they have issued cur
 rency to the extent of one-fourth O
 this amount, they could themselve:
 have furnished about $9,5O0,0OO O the $11 100000 they were compelled
 under existing circumstances to bor
 row outside. In my opinion, there
 fore, the cotton growing south has ;
 more vital interest in devising a banl
 currency which is elastic, as well al
 safe, than any other section of tn,
 United States
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