Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-09-23
us MEYERS SONS 9Th AND BROAD JULIUS MEYERS SONS 9Th AND BROAD

one ninth OF the entire crop, when this
Is 100000 bales. remains In the section
where IL Is grown. OF the remaining
eight ninths. about 100000 bales are ship
ped North, where IL Is manufactured.
while about two thirds OF the entire crop
are exported from the United States.
The rapid removal OF so large pro-
portion of this great product within SO
short n period OF time requires a large
amount OF actual currency. for most of
the cotton Is paid for Ia interior towns at
the South with spot cash. A. the cotton.
growing region is not dcnsely populated.
the accumulation of banking capital there
Is not enough To prevent the enormous
amount of money ne4led Cor few
months TO move the crops and for this
reason the southern banks have to borrow
largely from. banks in other sections du-
ring the crop period. This is reflected In
national-bank reports for the past few
years by the following figures. showing
the amount OF money borrowed by ma
tional banks i'm the dlstinctively cotton
States Of North Carolina. South Carolina.
Georgia, Virginia, Mississippi, Louisiana.
Arkansas. and Texas. at dates I'm each
ySars approNimating October LIST ana
March LIST.
October 5. 1851 s6.s9sOoO; February "a.
1888 Sl,7S3.O00; october 4. 1888. Ss,Sis.U0;
February 26. 1889. sl,73l.000; September ~.
1883. 50. $4,000; February Is, 1880, G,ll,W';
october 2 1880, Sli,53i.00O; February ~.
1891. S,54S.00O: September %, 1891. sl0,bo5. 0oO;
March /. 1892. Si,62i 900: September 20. 1872,
SIC. $4,000; March g. 1898. N725.0o: October
3. 1898, Sl2,35l, 600; February p, 1894. N.9il,-
coo; October 2 1894 SILL 600; March ,,
1895. S. 600; September rs. 1895, sloSB.yO;
February 90 1895, Si0iG 600: October ., 1875,
$llO9S.0G0; March .. 1881, Si,3S5,0o0
when the borrowings OF the state
banks I'm these states are added TO those
of the national banks. and II IS UNDER
stood that most OF this money IL borrow
ed from New York, It can be seen how
potent a factor the cotton-crop movement
must be IN affecting interest iss,s ga .,-.t
York.
These figures. think, too. show how
vital an interest the bankers. merchants.
and farmers In the cotton-growing states
have i'm currency which would be elastic.
II any plan could be devised under which
the southern banks could issue additional
currency equal 10 one fourth OF tnen
capital stock. during the cotton season, II
would be a godsend 10 that section. Tor
IL would enable the banks there 10 fur-
nish the money needed without outsida
aid. and free from the cost OF interest
now paid on borrowed money. and ma
tonal banks in all sections raving the
same provisions. the result would be 10
make money more abundant and cheaper.
and TO relieve the New York market or
the annual strain now put upon II.
ION October 6. 1896 The capital stock or
the national banks In the eight states
named was about 100000. Could they
have issued currency to the extent or one
fourth OF this amount. they could them
selves have furnished about ys6D,l00 or
The 81 10000 they were compelled, under
existing circumstances. TO borrow outside.
In my opinion, therefore, the cotton
growing South has q more vital interest
in deyising a bank currency which II
elastic as well as safe than any other
section OF the United States