The times. [volume] (Richmond, Va.) 1890-1903, 1897-09-23
A MORE ELASTIC CURRENCY.
DeIuy Controller CONN Shows the GTat
Need Of Il in The South,
WOULD RELIEVE SIRsIN on EEW YORK
During the Cotton Season by Providing FOR
Local Currency to Move the Crop
OF vital Interest TO the Banks
ers Of Gotham.

WASHINGTON. d. c.. Sept. 22.-Dep-
uty-Comptroller OF the Currency Coffin, in
discussing recent advance In money rates
In New York. said this morning.:
Some OF the recent sharp advances in
rates Of interest on demand loans in New
York is. no doubt, due TO speculative ma
nipulaton Of the stock market. but /
think the Impulse 10 this upward turn
has been given by the heavy Withdrawals
from New York Of funds for the legt-
mate purpose OF moving tho cotton crop
now coming 20 market
INTEREST ADVANCED.
"As resident OF South Carolina. IA
uiI,ar with the movement Of this crop
I ts,o for years observed It's effect upon
national bank statements. as well as on
tto nancy market 90 New York during
tbs month OF september. AS rule, the
rates Of interest advance about this time
and in some years have approached the
danger limo and while the movement OF
tbo ,ybeat and other great crops has con-
tribtted TO this effect. stin / think the
rnovement OF the cotton crop has been
fbe main factor for this reason.
"The average value OF the cotton yl,iu ,i..
ie about $780, 900. and II ls pracLicaH5
marketed between october lst ana MaIel
fqt IN within q period Of FIVE months,
49, a. is noouliar in this respect that
orf, sbouf onc-ninth Of the entire CROP
,rbor tbie is . 100000 bales. remains IN lhe
,o@4to, ,ybcre it is grown. or the re-
naming eipht-ninths about 2VO'oD otle7
aro ebinned North. where u IS man
,,,rod ,-bile about two-thirds OF me en-
,ro croo arc exported from the Onlteu
,grno ranid removal of 60 large a pro
rorfion of this great product "lli',l
short period Of time requires l4'
amount OF actual currency t.l -, 81
the cotton is paid for Do interior 1o"l' -,
the south with spot cash. ~ .,,,iotod .l,.
H. accrroulati1n Of banking capital
t.oro ie NOT enough 40 provide tne enol
,,r,,s amount of money needed TOT ltm
,,,o,+te to move the crops. ana TOT tIl7
reason the Southern banks nave 20 ~
row largely from banks ln olnsr
AMOUNTS BORROWED.
,ort,t. te reflected in national BANK
rorte for the past few years ny '..
LOWING figures. showing tne anu .t,o
money borrowed hv national ..in 49,,
distinctivelv cotton states OF NoI I,1,,l-.,,, 1,l
lima South Carolina, 1eoI.Il. ord
1f,eefeeinpi Louisiana. Arkansas
49, az dates in each year. approx
,,otirg October 1et and March l'l' q.
aOctobor E 1897. 9f1o5000. February .l. lt'
,eoo e. -ea oo0. October 4. 1883. S''iA'.'''
Febr,arv 2f. 1S,9 n7nOoo: sepl.li,,,,i ,.,
=, 1eeo 20 Oh o00. February 2s. lso' szlAl'-
oo6. cstober 2. $500 al5aoS. Fe9ru,Iy ,,I
% os 1sm g5VW0: September =. lSl' >lo.-
~. ~, o,,. ,,orob fsq2 SO G2l 0o0. seDtemhor
!, 500 to eio o00. March 6. 1902. A.'-'ODl'
C..oto- 1SQ7 si2 951 000: February ~
,o,, et OF nm. october 2. 1S9i alllOn'
.,arot 1895 So 7m 00O: Sentemhcr -
1so- sto s0s O00. February %. 1906 SiVlolo
October G. 1896. tl1 10S0oo; March - l'''
81 3s5 .Ooo .to efot.
hanks I'm these states arc added 70 lnose
~ fbo National banks and u - unuel
etood that most of this money U.s. "''
royod from New York 10 can ns se'u
how potent % factor the cotton croI'
movement must hc in checting interest
rates in New YORK. ...r,,...o,
OF VITAL INTEREST
,.,,,..-. eo,,rc- Z think. show how vita
90, f,+erost tho bankers. merchants ana
-, I'm +he cotton growing States
80 an n currency which would be c'aa-
a., TO onv plan could De devised under
,rn,ch the Southern banks could issue
additional currency equal to one-ionf tn
~ fhoir capGaI stock during the cotton
eeaeon 70 would he a Godsend TO- thar
eoction. for So would enable the oank.
tbero to furnish the money needed with
o,t outside aid. and free from the cost
- interest now paid on borrowed money
and national banks in an sections hav.
ING the same provision. the result would
bo to make money more abundant and
chcaper and 90 relieve the New York
market Of the annual strain now put up
on it
"On October G. 1896. the capital stoch
of tho national banks I'm the eight States
named was about s2S0oo0oo Could they
have issued currency 20 tho extent Of
one-fourth or this amount, they could
themselves have furnished about $500.
600 OF the Sii 100000 they were compcllef
under existing circumstances 20 borrow
outside IN my oninion therefore. thr
cotton growing South has n more vita
interest in devising q bank currency
which is elastic. as well as safe. thar
any other section OF the United states