The times. [volume] (Richmond, Va.) 1890-1903, 1902-08-20
THE NEED or CURRENCY.

THE NEED or CURRENCY.
IN yesterdays paper we spoke of the
need Of local currency throughout the
length and breadth OF the land, and
pointed to the only adequate means OF
supplying such currency according to
the needs Of the people. In the same is.
sue of The Times was the following state
ment from the Wall Street correspondent
OF the Associated Press:
Reports from interior monetary centres
were of firm tone to tlSe money market
and large demand from smaller town
and country places fer currency, indi.
eating the near approach OF the demand
upon New York reserves. New York ex-
change at Chicago continued to drop and
was quoted at 10 cents discount, compared
with % cents premium early last week.
The New York sub-Treasury is con-
tlibuting slightly TO the local money
market by reason of the full tide in the
monthly pension payment, but the recent
daily deficit reported by the Treasury
nj washington gave place to-day to g
surplus of several hundred thousand
dollars for the first day during the cur
rent month.
For some time past there has been APP
prehension in financial circles lest there
should be what is known as a squeeze
in the money market, and the appre-
that a great deal of money would soon
be required to move tho crops. There is
more money in this country than ever
before, more in voluma and more per
yy,,t Sc J,,-;c1 Jor
money for business purposes and a little
while hence there viii be an extraorCi-
nary demand to remove the enormous
crops which cur lands have produced.
The demand comes largely from the
western wheat-felds ana corn fields and
from the cotton-fields of the South, but
while the demand is local the supply of
money must come from other sources,
and New York must furnish it's part.
But why should New York be called upon
to supply money to move the crops in
Kansas and Missouri and Ohio, in Ala
bama and Louisiana and Texas, and
other States far removed? With these
enormous crops the Various localities in
ance Of bankable assets and if such as
sets could be used as a, basis of currency
the necessary currency would be found
at home and the financial centres would
not be disturbed. Local currency would
be issued by the local banks to meet the
extraordinary demand and as soon as the
crops We're marketed the currency would
return naturally and easily to the banks
OF issue and be taken III. AS it is, these
distant States must send to New York,
for money, the New York banks must
be taxed to their utmostl capacity to sup
ply it, and in all probe bility local bor-
rowers will be called ul,on to pay their
loans, and if the thing goes far enough
there will be a pinch ard a squeeze and
business will suffer accordingly.
We direct especial attention to the
statement contained in 9he above Asso-
ciated Press report that the government
has been doing something toward re-
lieving the situation by its pension dis
but this is a mere incident
and a mere accident of the situation.
The government is almost powerless to
act in the premises. /. is certainly in
no position, and we do not see how it
could be put into position of supplying
this need unless we should put the gov
eminent in control of the farming inter-
ests of the country and of nll branches
of business and Industry.
There is but one remedy, and that is
for the government to permit banks to
issue currency against their own as
sets, and when that is done there will
be a perfectly natural supply OF cur
rency according to the demand in each
and every locality Of the country.