The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-14

A man in Kansas named Griffin has
put forth a plan to end what he calls
money famine" from which, he con-
his plan:
!. Let one or more states establish bull
lion bureaus or warehouses in which sill
yer can be deposited and receipted for in
quantities of $71h grains, or multiples
thereof, with the statement that that
amount of pure silver, worth at coinage
rate one or more dollars. will be delivered
to the holder on presentation.
,. Require the officer in charge to an
nounce, at the close of each business day,
week or month the average price of the
bullion in a silver dollar during that
period at some designated market; pro-
vide further that these receipts shall be
receivable at the price of silver bullion
last announced. for state county and
municipal taxes; and also authorize the
sale of so much of the metal as may be
necessary to pay creditors that decline
to accept bullion receipts-f there be
such
g. Provide that. when silver is remone-
tized, the bullion on deposit shall be
turned over to the general government
and the paper issued thereby be used to
redeem the outstanding receipts.
The foregoing is published not because
it contains anything worthy of serious
consideration, but to show what curious
ideas in respect to the currency are held
in various parts of the country. In the
first place there IS no money famine"
There is a great deal more money in the
country now than there is any use for.
That this is true is shown by the state
ment of the New York banks. These
banks have above their legal reserves
more than $5O0O0,OOO, which they are Of
fering to loan at one and three-quarters
per cent. per annum, and yet at that
low rate of interest nobody applies for It.
We admit that in Kansas there are thou
sands of people who would like to borrow
1t, and who would willingly pay twelve
per cent. per annum for 1t, but what Sc
curity have they to offer for it? Some
of them are now paying fifteen per cent.
for money with which to pay their taxes.
There is plenty of money in the coun-
try. Nearly all the banks have more
than they know what 10 do with, but
they are not loaning it in Kansas They
wouldn't loan it in that state If they
were offered twenty per cent. for it, be
cause OF the uncertainty of ever getting
it again.
But suppose Mr.. Grinin's scheme were
adopted, how would those Of the people
of Kansas who want to borrow money
get the warehouse receipts? Would those
who have the receipts loan them in Kan
sas? What reason is there for thinking
the owners of the warehouse receipts
would be any more willing to loan them
in Kansas than banks or capitalists are
to loan their money in that state? AS
far as we can see there is no reason.
a failure.
What Kansas needs is more credit and
fewer cranks. If her people had credit
they could get all the money they want at
a reasonable rate of interest. Their pop
ulist statesmen, however, have destroyed
their credit by making laws that prac-
tically prevent creditors from collecting
the money due them. Until Kansas gets
into the control of those who believe in
dealing honestly with creditors her peo-
pie will labor under the delusion that
there is money famine" throughout
the country. There may be a money
famine" in that state, and perhaps in
some other states in which similar ideas
in respect to money are held. but there
will be an abundance of money elsewhere
in the country