The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1898-12-09

money b express on his eastern balances.
Nay. more; II the crops be large snd prices
good. he IS forced 20 supplement his own
By borrowing for q period at the
centsrs bis correspondent 1t the center, IN
meeting his requi sitiou for the money due his
country, IS obliged 70 take &c from what had
before constituted his legal reserve This dis
turbs the equilibrium Of relationship To re-
cover his position be turns Upon the street ana
calls in portion Of his loans II the interior
banker, after thus calling for the balances due
him. asks In addition for . loan, the city bank
er is often obliged TO inform him that money
is very close and he cannot accommodate him
Gradually, after more or less strain and anX-
iety. sometimes bordering on panic, sometimes
resulting in panic q readiustment IS secured
Crops from the fnterior-not seldom forced
from the producers hands, with little regard
to price, because Of his inability TO borrow
from his local bankers-move 20 the seabOard
The strain on the country Is relaxed Again
currency in the form Of reserve funds moves
70 the center. Again one dollar thus received
becomes effective as reserve for four dollars OF
liability Money is quoted easy, IS the pros
pect for summer dullness becomes as sured
Whoever has followed this delfneatiOn Of our
financial movement and those who are familiar
with the facts which are thus portrayed. ought
not 70 have trouble in percsiving that the bot
tom cause Of the irregular and deranging ef-
fects described is 70 be found in q fixed
volume OF paper money clothed with
full powers Of q legal tender. Upon
q
other credit obligations in the form Of
bank deposits through bank loans, may be
built up in the proportion Of four % one With
the volume Of paper money thus dxed-with no
natural movement toward its retirement when
not needed in legitimate trade-the tendency 20
build the fOur-stOry structure upon it as per-
manent base is irresistible The Withdrawal
Of the base by those who really own It causes
the structure to vibrate and threaten IL with
fall
Consider now, as briefly as may be, the prac-
teal working Of a bank note currency-nOn-
legal tender-if substituted for the paper money
issued by the government VeridcBtiOn may
be found by those who viii look for il IN sys-
tens now current in France, Germany. Scot
land and Canada. or. IL our own records be pre-
ferred, the New England system Of % years
ago. or those then in vogue in Indiana, Iowa
and Louisiana. viii 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 70 issue cir
Culating notes may be summoned into use,
then the needs Of industry viii coincide with
the prOflt-moving motives Of the banker, and
the full value Of this latent power viii be eE-
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, viii always be restored in full upon
currency, on the contrary. is not suspended It
is. as pointed out inevitably instructed 1t
artidcially stimulates speculative activity in
securities at the ceuterS Il practically alb
serbs the credit powers at times when they
should be made serviceable TO the whole cOuu-
try. It ministers 70 the Spectator. IL preju-
dices the producer. the merchant and the man
ufacturer. though. at last ali suffer from
its deranging influences These are the rea-
sons. the more important reasons. why our
banking system should be reformed and made
effective 70 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
qualifications 70 make IL a proper factor in the
cOuntry's exchanges Of products and manufac-
lures; IL the fact also be admitted that it IS q
deranging and disturbing factor in its relation
to industry and commerce. then the time has
come TO substitute for It a currency which viii
adequately. economically and safely meet the
ever growing needs Of the country, rapidly de-
veloping as IL 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 the
proper agency for operating this important
function He must have motive for his action
or he will not exercise it Given this motive
he viii. like the labOrsr the merchant or the
professional man be diligeut in the employ
rneut Of his powers