The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1898-12-09

money by express on his eastern balances
Nay. more; II the crops be large and prices
good. he Is forced to supplement his own
resources by borrowing for O period at the
centers His correspondent at the center, in
meeting his requisition for the money due his
country is Obliged to take II from what had
before constituted his legal reserve. This dis
turbs the equilibrium Of relationship. To re-
cover h is position he turns upon the street ana
calls in q portion OF his loans II the interior
banker. after thus calling for the balances due
him. asks In addition for u loan the city bank
er Is often Obliged to inform him that money
is very close" and he cannot &C ;ommotat' him.
Gradua ", after NOR. or less strain and anx-
iety. sometimes bordering on panic, sometimes
resulting in panic, n readjustment IL secured
Crops from the intcrior-not seldom forced
from the producers hands. with little regard
to price. because Of his inability to borrow
from his local bankers-move to the seabourd
The strain on the country Is relaxed. Again
currency in the form OF reserve funds" moves
to the center Again one dollar thus received
becomes effective MS reserve for four dollars Of
liability. Money Is quoted easy, as the pros
pect for summer dullness becomes rs sured
Whoever has followed this delineation Of our
financial movement. and those who are famill ar
with the facts which are thus portrayed. ought
not to have trouble in perceiving that the bot
tom cause Of the irregular and deranginR ef-
fects described is to be found in fixed
volume OF paper money clothed with
full powers OF legal tender Upon
this money-itself credit OBLIGATION
other credit obligations In the form OF
bank deposits through bank loans, may be
built up in the proportion OF four TO one. With
the volume Of paper money thus fixed--with no
natural movement toward its retirement when
not needed In legitimate trade-the tendency to
build the four-story structure upon IL as per-
manent base is irresistible. The withdrawal
pf q m nv wi m
the structure to vibrate and threatens 1t with q
fall
Consider now. as briefly as may be. the prac-
teal working OF bank note currency-non-
legal tender-if substituted for the paper money
issued by the government Verihcation may
be found by those who will look for IL in sys-
tens now current in France. Germany. Scot
land and Canada; or. II our own records be pre-
ferred. the New England system Of 40 years
ago, or those then In vogue in Indiana, Iowa
and Louisiana. will be equally good examples
When, with the recurring needs OF the In
terror to handle its products of the farm the
factory, and the mine the power to issue cir
culatinR notes may be summoned into use,
! then the needs OF industry will coincide with
the proflt-moving motives OF the banker. and
the full value OF this latent power will be ex-
perienced. not in the centers. where bank
notes are not needed and will not circulate but
in the interior where raw products are raised.
and where the busy wheels OF shop and factory
certify that labor wages are to be paid
| The power Of the bank note, so temporarily
suspended, will always be restored in full upon
| the call OF industry. The power OF our present
currency. ON the contrary. is not suspended 1t
| is. ms pointed out inevitably misdirected. 1t
| arthcially stimulates speculative activity In
securities At the centcrS IL practically alb
/ serbs the credit powers at times when they
! should be made serViceable to the whole couu-
try. II ministers to the Spectator. It preiu-
dices the producer. the merchant and the man
ufacturer. though, at last. all suffer from
its dernnging influences These are the rea-
sons. the more important reasons. why our
banking system should be reformed and made
! effective to commercial and industrial needs;
and these same reasons. with others not here
set forth call for the elimination in a safe and
proper way, of the injurious interference in our
! currency system by the legal tender paper
money Of the government
! II IL be conceded that the legal tender money
issued by the government does not possess the
ALLEGATIONS to make 1t a proper factor in the
| cOuntry's exchanges OF products and manufac-
lures; IL the fact also be admitted that 1t Il d
deranging and disturbing factor In its relation
to industry and commerce. then the time has
come TO substitute Tor 1t currency which will
adequately. economically and safely meet tn,
ever growing needs Of the country, rapidly de.
veloping, as IT. Is, in the power Of production
in the number of its people and the importance
OF its domestic and foreign trade.
In the nature Of things the banker is th'
/ proper agency for operating this importan
function. He must have motive for his actor
or he will not exercise IT, Given this motive
/ he will like the lnborrr. the merchant or thI
professional man. be diigcnt in the employ
ment Of his powers