The Washington times., 1907-11-05
Lack of Ready Money
Gipen As Main Cause
Of Financial FURRY
Reconstruction of Monetary World Will Be
Slow But Sure and Greater Stability
Will Be Ultimate Result

the banks would have been but a drop
in the bucket compared with the neces-
stiles OF the occasion.
The great trouble lies in the non
elasticity Of the countrys currency.
There is no credit currency, but cash
iers' checks, and they do about II per
cent Of the business OF the country.
Now. however. there are clearing house
certificates. cashiers checks and pri-
vate checks and promises to pay.
Begin With Crop Movement.
Every year the situation becomes seri-
oCs along about the time for the move
mer5 Of the crops. Bankers begin 10
prepare for the contingency and legiu-
mate business and speculation as well
as investment-and stocks are as legiti-
mate investments as anything on earth.
for without these the national prosperity
would ebb and never how-aTe curtailed
in order that the necessary millions
may be sent to move the grain. cotton,
and other products to market.
These millions on millions Of dollars
OF valuable commodities have no value
as currency. The GovernuSent with its
time locks viii not, can not advance
a dollar against 200. 900 bushels OF grain.
But on bills Of lading gold may be
| brought from abroad and thus the grain,
cotton, and tobacco, or rather that por-
! ton not used, brings back from the
ether side gold IN large quantities.
First Work for Congress.
The panic viii make the chief topic
OF the coming session Of Congress one
Of currency. It win not down. Every
other question will have to wait its
turn while the lawmakers settle the
question of currency. either through a
national bank or through some other
| scheme-but settle it they must
The Bank Of France, the Bank OF
| Germany, and the Bank Of England.
| These are the monitors of the financial
condition on the other side. They are
the makers Cf elastic currency when
| IL IS needed, and the institutions that
make money rates for the world, al
though In our present abnormal situa-
ton their rates have no influence on
those prevailing here.
Elastic Currency IN Europe.
Scotland has an elastic currency OF
| 1872 per head that expands and re-
| eedes as occasion demands, within a
/ limit OF &5,0000O0. The same ratio
would give this country $4,000 900 much
! needed money right now. France has an
! elastic currency of S1.T5 a head, with a
I volume of currency expansion of $67,-
600.0cO as needed, and the same ratio
! would give us S150O00000. Germany has
! an elastic currency of $2.12 a head and
/ Sl2J, ,l00. 900 IN volume, which ratio would
/ give tke United States $50. 10000 OF
/ money Canada, our neighbOr has an
/ elastic currency OF S3-25 a head. and the
1 same ratio would give US $3.50. .000. 600
In 1900 the United States currency was
/ 5000, 100000, IN l9J4 $4,000 600 900, equal
| 70 the entire volume OF circulating med
1 ium IN 1870.
Need Financial Assistance.
Such expansion needs great financial
! assistance.
| The cotton crop for 1907 held back for
/ higher prices. Will bring $40. 900. 0o0 from
/ the other side. and IL is going on board
/ tramp steamers Just as fast as the
| gangs can load IL and railroads trans
( port It to tidewater. The grain crop
/ win bring $40 O00 600, and on the farm
I the entire crop viii not add a dollar
/ to the circulating medium
Twenty-Five millions a week from cot-
ton and gra1n-this IS the outlook and
hope OF the future, and patience will
serve it, purpose.
There was palpable warning Of this