The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1906-01-26
G. Nichols.


ment for labor; of building and con
structive activity in all lines; of enor
mously enlarged bank clearing totals
and of strikingly small failure damage
considering the immense business
and the unprecedented number engag.
ed therein.
THE multitude of records broken
shows that new guideposts have, in.
deed, been set up. The commercial,
financial and industrial movement
surged forward, weather drawbacks
and disclosures of financial rottenness
in high places failing to stem the up
ward trend. Disregard of precedents
was, perhaps, best illustrated in the
persistent advance of securities de-
spite high money prices, and the ten
dency to discount prosperity was ire
sistible
The years statistical change from
1904 shows:
Increase yield cereals. :. 10.6 per cent
Increase value cereals. IA per cent
Pig iron output, increase SO. per cent
Iron ore shipments, inc Sc. per cent
Steel rail production, inc. 81, per cent
Anthracite coal OUTPUT,
inc ............... 3. per cent
Shoe shipments (cases),
inc Observation-Disclosures. Z. per cent
immigration, total inc. 40. percent
Exports, mdse. (est),
inc .................. 10. per cent
Exports, mdse. est,
inc 10. per cent
Railway earnings, inc. Z. per cent
Bank clearings, inc. $50. 27. per cent
CIRCULATION.
December LIST, increase. 8. per cent
Bradstreet's Financial Review says:
Though expanded by active stock
wheat and cotton speculation, bank
clearings reflect in the main immense
growth in trade and industry Month
ly totals since October, 1904, have
been in the tens of billions, successive
high records being struck in March,
November and December. Every
month but May showed increases over
the best previous totals. 1t would
seem as if the pre-eminent necessity
in 1906 should be conservatism, par
ticularly in labor matters and finan-
cial affairs generally"
This presents business view of our
nation, and as the burden of handling
all the business rests upon the banks
and bankers of the nation, shall try
to present the situation as they view
it and then argue a little further the
plan of relief suggested.
The bankers of the whole nation are
presenting false front in holding out
in every community that they have
sufficient funds to accommodate the
business demands of their customers.
when in fact they stand in awe of the
situation and curb, as far as possible,
the very demands they profess to be
able to accommodate. It is rare
community that has sufficient money
10 accommodate all seasons the bust
ness demands OF the country, and
knowing this, and the further fact
that New York and other centers
have more than they can do, they
hesitate to use even the funds at
hand, not knowing what will happen
at any moment, whether or not re-
discounts can be counted as GER
tainty. They close in and curb bust
ness at high tide as the water mill
closes and restricts business at low
tide.
The volume of money in circulation
in each community would almost &C
commodate the demands of that com
mUnity if the banks had a certain and
sure place of rediscount or relief, such
as is offered in the above plan.
In the year 1905 business surged
forward and the banks were obliged
to take even more than they had
dreamed of and they were obliged to
ask for help from the already burden
ed centers. To hold the business,
they, too, were obliged to call on for
eign bankers for funds, and notwith-
standing the high interest rate, mark
ed up in this and other countries, the
demand continues.
The reason for the advance in value
Of money is simply that it is worth
more; and it is not to be had. The
demand is greater than the supply,
and the reason why the demand is
greater is chat every bust
ness concern in this country
Is legitimately expanding, and I'M
less some relief, such as above offered
Is had, business will be curbed and