El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-02-07
SOUTH NEEDS MONEY.
DiversificatiOu of Crops and Growing
Industries Will Make Money Plenty.

Inc SOuGuGEu 6UdUSS w 6hu hlcI Jul
rency to carry on their agricultural in
dustry and to make their commerce al
exchanges. This want, which is genu-
inc and urgent, for small part of the
year, makes the southern people p
cujiarly susceptible to cheap money
crazes, whether of silver or pap +.
Few of them reflect tn at kind of money
having equal value the country owe
would be as hard for than TO get as
the present currency, which deserts
them five-s ixths of the year to earn 2
GER cent in New York, and has to be
laboriously logged back the other
sixth.
The trouble with the south is that.
like ev-ry other purely agricultural
country, it's demand for currency to
make exchanges aud carry on indus
tries is spasmOdic and uneven 1t re-
quires large amount of currency
when the cotton cropis being gathered
and sold, and much less at other times.
The west resem bles the south 10 this
respect. not SO much as it did when
the west was more purely agricultur-
al and one-crop country. With diver
eity of agriculture and growing up of
other industries, demand for currency
to market crops comes at different
times in the year, instead of all at
once, and varied Industrial employ
inents have created other profitable uses
for currency that keep it in the coup-
try in the intervals. The only effective
cure for the evil of which the southern
states complain is to diversity their
crops and other industries, so as 10
create q constant profitable use for
currency. This will keep q supply in
the country, which can be Grawn upon
at need, s nee it will increase and
diminish, like that of any o'her coun-
Try. with rise aud fall of interest, due
ID conditions of demand. No part of
the country will be stripped nearly
bare of money, as often happens now,
q the interval between crops.
The law of the automatic movement
of money which makes dearth in the
south aud west when the is glut in
simple. Money, which always is seek
ing employment. moves about, precise
" as men seeking employment move
about, only with vastly more quick
ness, facility and freedom. 1t flows
where there is highest interest, security
being equal, and where there is great
est security, interest being equal. This
is the law of panic flight and disappear
ance of money as well as that of peace
full circulation. 1t will remain idle
or unpaid anywhere, either for lack of
employing Mt or from distrust of secur-
ity. Either. condition puts it to
flight. This law governs the move
ment of money in the interior of a
country as we'll rs among nations.
The trouble in the south is that en-
ployment for large amount of money
stops from one crop to another, and it
is sent away to earn interest The
only remedy is diversiication of indus
Try, which will make more even d.
mand all through the year. This Is
oming gradually, as it comes to all ad-
vancing countries, which Introduction
of new crops and establishment Of
manufactures. In.the meantimenc.o'her
romedy is worth much. Infamati ion of
currency would not help, since relat-
u same and the new would follow
the same law is the old. Restoration
IF the right of note issue to state banks
would not help greatly. if the state
bank notes were worth their face va
iue and q ual in value to other cur
rency. If they suffered discount, they
might stay near home. The fact is
that banks whether of issue or discount
do not increase the amonnt of money in
i country. That is fixed by demand for
at fair return and secur-
ity. No matter how many state BANK
notes were issued, if they had sound
value they would go where interest was
highest.
Small national banks, contemplated
by present legislation, would help the
south every bit as much as state banks
though there is no great objection to
The latter, under the same safeguards
a d the same national control. But
all any banks can do is to facilitate the
natural movement of money by bring
ing it in quickly when wanted and Diff
fusing in O uickly where it is wanted.
Banks in small cities uudOu otedly
would help in this way. But no con-
agency will make good mo-
ney stay in q country :where there is
no profitable emplo, ment Tor tn. Y.
Commercial Advertiser.