The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28
Money Needed
Views Of Mr.. John P
Branch on the Sit
uation.
Country Cannot Remain
Prosperous Unless We
Have Large Circula-
ting Medium.
New York Commercially

1 Speaking of the outlook for currency
legislation by the coming Congress and of
the sort most desirable John p Branch.
of Richmond, one of the best known
Southern bankers, said today:
I'm 1919 gold was discovered in Cali
lornia, and great stampede ensued from
the East overland and by way of Cape
| Horn to that State. The production of
gold increased yearly and brought in It's
wake a state of prosperity in this country
never equalled before, and which continu-
ed until the civil war
In January, 1879, our Government re-
sumed specie payments. This caused the
release of gold held not only in the Treas
ury vaults of the United tSates, but also
by individuals, which in its turn again
brought us great prosperity, especially
through the building Of railroads, reaching
far into the interior of the country where
they had been much needed. Overy TWEEN
W years ago gold was discovered in South
Africa, and the output increased from
time to time until it reached the magn-
cude OF nearly O,000.U00 per annum.
This also brought great activity in agri
cultural. manufacturing and commercial
business in Europe Inc heavy output OF
gold was not checked until the Boer war.
Shen depression set in from d curtaIl.
nlent OF the output, and II has not yet
ull recovered.
,,.,s 80 0oe ,.ro.,a.
III this country was at a low ebb, as we
were in the slough OF despond occasloned
by the great agitation OF the free-sifyer
iallacy; and Ye remained in this deplor-
able state until the election OF President
mckinley in November, 1886 That event
.estored confidence and, together with the
protective tariff of 1897, brought about un-
equalled prosperity in this country, which
created a great and growing demand for
the medium OF exchange, which was in
creased about 25O,OO0,000 in national
bank notes. besides a large production IN
gold But, with all this, the supply is
not sufficient for the great demand caused
by the activity in trade OF all kinds and
the increase OF securities unparalleled be-
tore in this country-and l doubt if equal
ed in any other portion of the world i'll
the same length of time.
while our country is still very pros
porous, this, in my judgment. cannot con
tinue unless we have a large circulation
medium This can be accomplished by
taking the tax off of national bank notes.
also by allowing an emergency circulation
to be issued when needed to prevent a
panic and to move our large crops.
THE Aldrich bill presented during the
last session of Congress is as good as
far as it goes; but. in view of the banks
having bought very large amount OF
bonds at a high price, which they have
put up as security for Government de-
posits that are paying them only about
IL per cent per annum. they cannot af-
ford to pay per cent interest on Govern
ment deposits; and / would suggest mod
ication of the Aldrich bill, reducing the
interests on Government deposits to
ger cent or less. where Government bonds
are deposited as security for the same.
The newspapers say that the President
will call an extra session of Congress
early in November next, but / am afraid
that will be too late to remedy the great
scarcity of money that will probably oc-
cur in the early fall months when the
bulk of the crops will be moving What
we need more than anything else in this
country is: First, confidence; next
cheap money; then, cheap house rents:
and, last, but not least, constant EN-
ployment for the laboring classes. S.
John p. Branch is president of the Mer-
chants National Bank of Richmond and
senior member of the firm of Thomas
Branch & Company, the oldest financial
concern in Virginia. He is connected also
with many other enterprises and is one Of
the most astute and successful fnanciers
in his State. p.
Richmond. Va. June 16. 1903