The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-12-23
SOUTH NEEDS MONEY.
Defects in Our Currency
Laws are Glazing
MONEY GOES ABROAD
BECAUSE THERE is NO MONEY
COLLATERAL HERE.
BETTER BANKING SYSTEM NEEDED
The Fact That Our Money Stays in Europe
While Our Business Suffers for it, An
Swers MIR. Coffin EffectuaIIy--A
pne;nace Name Vians.
Business Mans Views.

A prominent and successful Raleigh
business man says that, mas
much as free coinage cannot e
secured until 1900 in any manner
that can be devised, it is to the interest
of the South to try to secure some meth
cd by which the money can be more
evenly distributed. Talking yesterday
with a News and Observer reporter. this
gentleman said:
In your issue of Sunday morning you
have an article from Richard A. Me-
Curdy on the Branch Bank System of
Europe. which, if inaugurated in this
country. would make the article from
the Assistant Comptroller of the Cur
rency a much better answer to Bryan's
argument. His article reads &c follows:
George Coffin, Acting Comptroller Of
the Currency finds in the present trans
actions. insulting from sales of cur crops
abroad, an answer TO the BRYAN argu-
ment that the United States allows
itself TO be financially dependent upon
European nations. when Coffin called at
tention 10 the disparity n lw existing he
tween rates of interest in New York.
and those in the chief financial centers
of Europe Thursday in New York.
Coffin said: Money could be borrowed
on three months at 2ia per cent per an
nun. while in London the market rate IS
three per cent, and as high rs Al in
Berlin and Hamburg and Frankfort.
This difference explains why rle Uni-
ted States is not importing gold in set
Element OF the enormous excess n value
in exports over that of imports.
American bankers and others to whom
this large balance Of trade is due, pre-
ferred TO lend out their money ia Europe
at rates Of interest higher than they can
ger at home, which would further in
crease the supply of money in America,
and lower the rate of interest here.
This condition of affairs is all the
more marked in the face of the fact that
large sums Of money are needed Just
now for moving our wheat, corn and cot
ton crop, and that S220,000,000 Of cnr-
rency Is locked up IN the United States
Treasury balances
Two things, which it shows beyend
8 ouestson-tlat there is supersbla-
dance Of currency in the country, and
when the United States is lending en0T-
nous sums Of money TO other great
COMMERCIAL llaI4gAA Oh l1S AUlLA ltS
financial independence is already achiey-
ed. ana this without the consent Of any
other nation
After reaa4rg tbs extract, the Raleigh
business man said:
The defects in our currency laws
and banking system must Ike glaring in
deed. that VIII keep in Europe the sur
plus OF our exports, to be loaned at four
per cent, when two thirds Of the States
in the Union would gladly pay six per
cent II is true chat the low rates quot
ed IN New York are for call loans secur-
ed by stocks or bonds, but all of the
large financial institutions would gladly
lean il they might, on six months time
at per cent, but they find that our
laws prohibit leaning money on such
collateral as most sections Of the coun-
try have to Offer"