The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-11-12

not when times are dull and business
bad.
There has been a tremendous specu-
lstion in stocks of all kinds. and
values now are on a very high level.
The schemes of promotion and COM
bination have been on such an enor-
nous scale as to be startling and be-
wildering. This is all so spectacular
and sensational that 1t attracts great
attention in the newspapers and the
public mind is filled with stories of
great stock deals and enormous sums
made by spectators. We should re-
member. however, that all this is not
the cause of our great prosperity nor
it's chief result, but merely an una
Voidable, if not necessary, feature OF
ii. 1t is not speculation which has adj
vanced prices so much as it is adj
vanced prices which have caused spec
ulation. Railroad stocks have gone up
because we have $4,000. 900. 900
worth of farm products and $13,-
000,000,000 worth of manufactured
goods to move, In consequence. rail-
road earnings were more than so per
cent. higher in 1901 than in 1896. and
the traffic of the railroads to-day is
only limited by the capacity of the
cars and motive power. A billion-dol-
lar steel combination was only possible
because we were producing Is, 900 900
tons of iron ore; 900 tons of pig
iron; 100000 tons of steel ingots, and
100000 tons of finished steel a year.
and were finding ready market for 1t
all.
/.
We have hardly begun to develop
this country. In the South, the South
sw,NRll
sibilities as yet untouched. You of the
South have before you wonderful op-
portunities. With your oil, timber,
coal and iron added to the richness
of your lands, you should record in
the next ten years as great progress
and growth in wealth as the country
has ever seen. know of no greater
opening anywhere than the South pre-
sents to-day for men of capital. indus
try and ability. You are attracting
them from every direction, and what
is better you are developing them at
home.
1t is unfortunate that the weakest
point of our banking system Is in its
provisions for dealing with such a sit
uation as seems before us to-day
Nothing could better illustrate the ne
cessity for a more elastic banking cur
rency than the demand for it at the
present time. Our banks have been
and are being called upon to furnish
the currency and credits necessary to
move enormous crops, probably the
largest in volume and value the coun-
try has ever produced. We have
raised over 5000, 900 900 bushels of grain
worth at least $500, 900, OO0' and 10,-
100000 bales of cotton worth $780,
| 900, 600. With the other varied products
raised the total value will probably be
about $1,000. 000. 900. This call for cur
rency comes at a time when all bust
ness is being done on an enormous
scale. OF course. this crop does not
all move at once, and some of It is
used where it is raised. but enough
of it to require a very large amount
+ of money must be financed in some
way within a few weeks. Much of 1t
| is done on bank credits not recurring
actual currency, but the currency re-
quired is enough in volume to be a
large and difficult matter to handle
each year. This year it has been more
so than usual, and has been a cause
of considerable anxiety.
l believe in branch banking. The
oretically ii is the best system as
it is more economical. more efficient.
Will serve its customers better and
the organization can be such as to
secure in most respects better manage
ment. Owing TO cooperation between
its branches. it can be made safer
than any system of independent banks
If | were outlining new system for
country in which there was none. I
would adopt this system; and l regret
that it was not adopted or permitted
in the beginning of the National bank
ing system.
II believe the national banks would be
stronger and better to-day II branches
had been permitted and the system
had been developed with the branch
feature an essential part of it, If this
had been done. the currency would
doubtless have been made more elastic
before now. II IL had not, IL would be
easier now to do so with a system
OF large banks with numerous
branches. our system, however. WAS
started on the other plan. All its