The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-12-20

HE GREATEST demand FOL
increased currency come:
Il when it is required fol
moving crops in the farming
states. If this can be supplied quick
ly and automatically as required by
the banks in those states, and if, after
performing it's duty, it is returned tc
the banks and retired, it will mark q
great advance in the Improvement OF
our facilities for handling the vast ant
rapidly growing business Of this coun-
| try.
In the latter half of each year the
problem is presented to the banks to
furnish currency needed to handle
from $500 to 5000 millions of bushels
of grain, 8 TO 10 million bales of cotton
and corresponding quantity Of other
farm products. The total value of
these products for the year 1902 will not
be far franz 5000 millions of dollars.
| This calls for the use of a vast sum
of money. Much of 1t is done on bank
deposit credits, by means of checks.
and the increased number of banks
and better means of communication en-
able the people in country communities
to handle more and more in this way,
OF. we should not be able to transact
such an amount of business at all.
| So much of it, however, must be
handled with currency of some sort as
to make a demand for currency in
large amounts, and every year there is
a great deal Of anxiety, and often SER
| ious disturbance in business, until the
crop season is over and the money re-
turns to those who have had to furnish
it. This is matter Of more importance
to the man who needs the money than
the man who furnishes it. When in
terest rates advance it is the man who
pays the higher rate who suffers the
most, not the man who has the money
| to lend
| The people in the country who do
this enormous business and produce this
great wealth are entitled to better SER
vice than they get, are in fact entitled
to the very best facilities which can
be devised and supplied to them. 1t
it to supply these people who have just
raised such quantities of the most read
, lily salable staples the money they re-
Quire in that form of bank credits rep
resented by circulating notes. These
people own land worth 1854 millions
OF dollars, farm implements worth 761
millions, live stock worth 3,07S millions,
and raise over 1900 million dollars
worth of products. In the farming
states there are banks with over 600
millions of capital and 70 millions Of
surplus. They have on hand in cash
$40 million dollars, and due from other
banks SO2 millions. Here are agencies
enough to perform this work and
abundant bases for the credits if the
law permitted it. We place no limit
on the loans they make but that sup
piled by reserve requirements on the
deposits; why should they not supply
| q limited amount Of notes secured by
| two-thirds their value in bonds and
| made absolutely safe to the note hold
er ty the guarantee fund raised by the
tax on circulation? Such q change in
the currency would not only supply
! the reeds for crop moving, burt also
| the currency needed for other business.
Each bank could supply what it
| found was necessary for its own GUS
toners. The demand which generally
| begins i'll the late summer months
would gradually be met as it came. In
e"ery community the supply would be
IL the hands of men who are familiar
with local needs and conditions, and the
distribution would be made where and
when needed without reference to con-
| ditions elsewhere or dependence on the
| money market in the reserve cities and
| financia! centers
This would be OF great benefit, not
only to the people in farming districts
and those handling farm products, but
to the vast number Of business men en-
Gagged in mining, manufacturing, mer-
camille, and commercial lines. Instead
of the whole business public dreading
the approach OF the crop-movipg time
Tor fear there might come some strin-
| Sency in the money market to upset
| their calculations and interfere with
their financial arrangements, the banks
would be in position to furnish the cur
rency needed for the crops when and
where it was to be used without dis
turbing business in other lines.
| In times of panic the power to issue
additional notes would be an element
| nf gfr I, tn
of weakness. 1t would enable the
banks to protect themselves and their
customers when protection is most