The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1899-08-15

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also that the effort OF the city banker
to restore his impaired reserve by
calling money from the street does not
accomplish that direct result. There
is no money in the street," it is all IN
bank vaults, and the total stock can
not be augmented except by inducing
it to come in from without. What
does result is a forced liquidation, a
fall in prices Of securities, q rise in in
terest sufficient to induce outside
money to come in. In this process the
merchant and the manufacturer find
it difficult to negotiate their credits.
They also are told that money is tight,
and that they must withhold applica-
tions for discount tavors.
II forbear to follow into further de-
tail the Improbable and vexatious
movement. Gradually, after more or
less strain and anxiety, sometimes
bordering on panic, sometimes result
ing in panic, a readjlstment is secured.
| Crops from the interior-not seldom
forced from the producers hands, with
little regard to price, because Of his
inability to borrow from his local
banker-move TO the seaboard. 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 as reserve for four dollars of
liability. Money is quoted easy, as the
prospect for summer dizziness becomes
assured. "The street" breathes easier,
stocks and securities become firm"
and the movement toward an expan-
sion in loans, with its attendant phe-
nomenon of an increase in deposits, is
again abserved, to be again followed
by restriction and probable distress Is
the active season in productive indus
try and trade again appears"
From all this the able Secrertay
draws an argument in favor of retiring
all government notes and giving the
banks a monopoly Of issuing paper
money. Evidently the astute banker
overlooked the fact that he has built
up, perhaps unconsciously, a forcefuI
argument in favor Of a postal bank.
In fact, it shows the government, i. e.
the people, should go into the banking
business more thoroughly rather than
adopt the slogan Of the bankers as
groWled out By the ''bears" OF finance;
The government should go out of the
banking business" Further, iE shows
the falsity of the Oft echoed assertion,
There is money enough in the couu
try" There isn't. The Secretary
proves that the competition for the IN
ad quate money supply makes money
very close" impairs the credit of
the country banker, the merchant and
manufacturers" ''impairs the re-
serve Of the city banker" forces
Zig Iidation, " brings a fall in values, "
a rise il interest" and panic to the
street" and Wholesale wreck and ruin
TO the country. HIS remedy ia bank
issue and bank control of all currency.
In J ,nuary, 1883, the bank notes of
the National Banks in circulation ex
ceeded 1862, 600, 900. In one year 1t
was $12. 600. 900 less. In one more year
it was $21, 600, 900 still less. They
called in S12, coo, 600 in the following
year. Retired $21, 600. 600 in the cue
ceeding year. Withdrew a28, 600, 900
the next year. Maybe you recall the
pinch in 1892 Well, the banks made
money scarcer By 835 600, 600 in the
t #elve months Of 1888. Those who
didn't affirm "there is money enough"
were denounced as calamity howlers"
and condemned for ''overproduction"
OF wealth. Industry made infamous!
These Pharisees of finRLce to whom
G ,ge, the astute, would confde the |
issuing AND RETIRING Of ALL currency, |
locked up $50, 600, 0CO more of their
ote during 1899! Do you recollect
December OF 1892 Every one was
told money is tight" And no wonder
it was tight" 1t had drunk Of the
wine cup of the wrath of the National
Bank monopoly and all business reeled
in sympathy. The year 1890 saw a
further reduction of $19, 600, 900 in Ns-
tional Bank circulation. There is as
much money in the country as there
ever was" echoed the cuckoos of
finance. The year 1891 saw a reduc
ton Of IS OOO, 600. The bears among
bankers began to feel their own squeeze.
July Of that year saw the lowest depth,
1857 927, 574 bank notes in circulation.
The vortex of the whirlpool was in
In January, 1892. it had risen
to $173, 600, 900. Some one had seer