davidaulloa/AmericanStories huggingface dataset:
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12
HARD TIMES AND CLEARING
HOUSE CERTIFICATES.

Political economists, when political
economy was just beginning to be
recognized as a science, decried the
idea that panics and hard times may
be caused by mistaken policy Of
government. Even Herbert Spencer
vehemently declared that acts of
parliament could neither cause nor
cure the evils of business depression.
Since that time history has testified
to the fact that panics may be
brought about by errors of legislation
in times when crops are good and
when there has been no over-pro-
tltlicjiien u zatno1ities.
While II is generally conceded that
manipulation of the stock market by
certain Wall street interests was the
direct cause of the present panic, it
must not be forgotten that behind
the manipulation is legislation that
makes manipulation possible. The
primary fault lies in the laws govern
ing the national banks and the trust
companies. The secondary fault lies
in laws created by the influence of
the special interests.
The fundamental principle Of the
present banking system, briefly
stated, is this theorem: No great
number of depositors will withdraw
their funds simultaneously. This
is true during times Of confidence and
prosperity. But at the least alarm
depositors begin to withdraw their
money, and the banks are crippled, if
not actually ruined. And under our
present business system the failure
of the banks means the collapse of
the entire business structure. The
theory that will not work under all
conditions is wrong.
This country has recently witness
ed the singular spectacle of univer-
sal law-breaking In times Of peace,
for which action public sentiment and
public policy demanded there be no
punishment. The banks ABSOLUTELY
refused to pay depositors funds which
were legally due them; locked great
amounts of money in their vaults;
paralyzed the circulation Of the busi-
ness life-blood; deprecated the earn
ing capacity Of the laborer and caused
widespread misery and suffering. To
remedy this condition the banks
issued certificates guaranteed by the
Clearing House Associations. These
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12
The Money Clouds Hale Vanished.

session. The fact that the presiden-
tial election is approaching and that
therC de diversity Of view as to
The sss;orm Of new legislation,
leads salief that the subject
viii be 81 sGdered, without final
action, dfh present session.
The necsssifs sme important
measure Of rein quite generally
recognized, but Nth of senti-
ment for strong central bank is
checking in some degree the move
ment for giving wide powers of note
issue to the existing national banks.
Atlanta Constitution.
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12

the last treasury statement is ST, 561,-
714719, which is equal to more than
SO per cent of the total money in
circulation.
Further Increase in Bank Notes.
SoIae furtler increase Ill bank
circulation is expected here upon the
Panama bonds and the treasury
certificates, but it is believed that the
bonds will be deposited in many
cases as security for the public money
which has been left with the banks,
and will not be employed as a basis
for circulation until the one-year
certificates are Cancelled in the spring,
when money withdrawn from banks
by the treasury for the redemption
Of the certificates will release the
bonds and the latter can then be
substituted for the certificates as
security for circulation. If this
proves to be the case, the increase In
bank circulation will not be very
great during the next few months,
and may even turn downward as
soon as it becomes apparent that the
banks have large accumulation Of
cash for which there is little demand.
The reports Of the condition of the
national banks on December 3, which
are being published n various
lecallties aud sire sra ll4ail y reaching.
the comptroller of the currency, are
verifying the anticipations of leading
bankers that large reserves would be
disclosed in the interior banks, that
the disclosures would tend to restore
confidence, and that the banks would
be willing to release such excess re-
serves after making their statements.
A rough calculation Of the reports
Of the Chicago banks, including some
state banks, indicates reserves OF
nearly IS per cent. About the same
proportion is reported from New
Orleans, and still higher reserves at
smaller places, where the law only
requires Is per cent, including de-
posits in reserve cities. The fact
that two failures Of national banks
of certain degree Of Importance
have occurred during the week with
out apparently causing any shock
to confidence, even in their own
localities, and still less in the financial
centers, is regarded here as another
favorable indication Of the state Of
the financial markets.
The New York Situation.
The increase Of $4,671 900 in actual
cash in New York clearing house
banks is regarded here as one Of the
symptoms that the currency crisis, as
such, is practically over. The re-
duction of loans by about $11 100000
is also considered a favorable in
dication Of diminished pressure. The
increase in the required reserve Of
$6,779,000 reduces the deficit in New
York reserves to $46,210,000, and
part of this will be covered by gold
xyot 70 o,,x;x,o
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12

certificates, so the banks maintained,
We're Of greater stability than the
national bank hote, as instead of the
credit of one bank behind them, with
It's deposit Of United States Bonds,
they were backed by the credit CT all
the associated banks. 1t can be east
ly shown that this is a fallaeious ar
gumept. In the FIRST place, the panic
was the result OF. loss OF confidence
ia The banks and the issning Of clear
ing house certificates by the banks in
lieu Of currency was an admission Of
the weakness Of the banking system.
If the depositors lacked confidence
In the individual banks their conf
dence could not be strengthened by
any association Of banks. In the
second place, clearing house certif-
Gates are not legal tender and in
reality have no more value than an
individual check given by one person
to another. These certificates are
somewhat similar to the currency
Issued by the Confederate Government
when there was no confidence In the
stability Of the government. It
makes no difference how solvent a
bank may claim to be, it becomes in
solvent when confidence is destroyed
and depositors withdraw their mon
ey.
The banks were in a bad predica-
ment and the country was in a bad
predicament. Doubtless the action
of the banks was the best way they
saw 60 escape q difficult situation. The
deplorable fact is that errors III Iogis-
latlon are responsible for this state
of affairs. The recent panic brought
into the spot light these costly errors.
The people now wonder why the
laws regulating trust companies allow
them to lend 50 per cent on stocks
and bonds as collateral. The stock
gambler deposits 10 per cent, his
broker puts up 10 per cent more, and
the trust companies lend the balance
on stocks and bonds as collateral. Of
course, when the corne in copper
collapsed and the value Of certain
stocks dropped below so, the lending
trust companies were hard hit and
some of them were forced to the wall.
The whole intimately connected
banking system received shock from
which it has not yet recovered
Several plans have been suggested
for guaranteeing bank deposits and
for establishing a national bank of
issue as obtains In Germany and
France. This should be done by all
means. But there is another thing
of more fundamental Importance.
The time is coming when political
economists will realize that gold and
silver have no intrinsic value. Gold,
except the small amount used in the
arts, has no commercial value. Mel
Their has silver. The stamp of the
government on gold and silver gives
it its value as money. The stamp of
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12

OF the past week in the financial
world have been such as usually
mark the gradual return of confidence
and the restoration Of normal con-
ditions in the banks. The decision
. Of the secretary Of the treasury to
issue only about $40,000,000 Of the
$150,000,000 in new securities, which
he expressed a willingness to issue
if conditions required, the disclosure
of unusually strong reserves by
country banks reporting to the
comptroller of the currency, the de-
cline in the currency premium, and
the improvement in the New York
bank statement, have been important
events Of the week which have tended
towards stability and reinsurance.
Plethora Of Money in the Spring
The action Of the secretary Of the
treasury, In limiting the issues Of Sc
curltles, was part of the original
plan recommended to him to meet the
situation by resolute and adequate
measure, but to carry the execution
of the measure no farther than Cir
cumstances required. The result Of
limiting the issue Of the Panama
per cent bonds to $25,000,000, and
the one year treasury certificates to
about $15, 100000, will be to con-
siderably simplify the problem Of
treasury management and money mar
ket conditions during the spring. 1t
is anticipated by far-sighted bankers
here that there will be plethora Of
money soon instead Of dearth, and
it will be necessary to reduce in some
way the large volume of currency
which has been brought into use
during the crisis.
Increase of Money in Circulation.
The increase in money in circula-
ton outside the treasury, as shown
by the monthly statement Of the
treasury department for November,
was 131,872,887. Of this amount
the increase in gold in the country is
computed at about $72,000,00O, in
cluding domestic production as well
as importation from abroad The
other principal form of increase is
in bank ciculation, in which an in
crease Of $7,533,521 was obtained by
the disbursement Of bank notes held
in the treasury cash, and $46,237,730
was obtained by actual increase In
the notes issued by the comptroller
and outstanding.
There have been fears in some quar-
tiers that if anything approximating
$1O0,000,000 in new bank notes were
issued upon the security of the new
one-year certificates the resulting
imitation would expel gold in large
amounts after the credits established
by the crop movement were exhausted.
This danger will be reduced to a
minimum by the relatively small
issues made by the treasury, and if
small amounts in gold should be
exported, it is felt that they could be
l..
The Jeffersonian. [volume] (Atlanta, Ga.) 1907-1917, 1907-12-12

total gold in the country reported by
the last treasury statement is 81, 561,-
714719, which is equal to more than
SO per cent Of the total money in
circulation.
The Washington times., 1907-08-02
BRIGHTON COULDN'T
FIGHT NEW TRACK
Auto Races Insure No Op-
position For Empire
City.

|. NEW YORK, Aug. 2.-The announce
ment that peace had been declared AMI
that there was no further reason for the
rapid preparations which have been go-
ing on at the Empire City track for
tne past ten days. was received at the
track By racing men with the grra test
enthusiasm.
Ever since the beginning OF TIE rusa
10 get the scene Of August racing into
perfect shape nearly 800 worKmen and
experts In building have been working
al top speed 70 have the track ready
FOR the announced opening on Monday
ana when the word was received that
mere was no longer cause for worry
there was a perceptibIe relaxing among
the workmen on the job.
There WAS not the renotest chance of
the thoroughbreds racing at Brighton
Beach next week. Homer George, OF
chicago, secretary Of the Brighton
Beach automobile carnival. declared hI.
association held a contract with tba
track owners for the use and privilege
OF the course On next Friday and Satur
dey, the occasion Of the associations
annual races.
Nothing will occasion Us to postpons
me races, averTed George.
The Washington times., 1907-08-02
Atlantic CITY
Auto CarniUQL
One Day Longer

NEW YORK. Aug. 2.-Thc race meet
IN connection with the Atlantic City au-
tomobile carnival which takes place
next week, VIII be the biggest racing
event that has been held In the East this
season and the managers, who origin
ally intended that the racing should be
held on Monday and Tuesday. have been
compelled on account of the large num-
Der OF entries TO continue them on
Wednesda" and also have decided TO
ofer three prizes equivalent TO 800 IN
cash for three classes, one for each
class IN which Is established the best
new worlds record. The three classes
are:
One-mile. open, free-for-all, flying
start, one-mile roadster fully equipped:
one-mile touring can fully equipped.
carrying FIVE passengers.
These three events will particularly
interest the manufacturers, and entries
for the same will be received until sun
day evening, when the post entries for
all events will close. The regular en-
tries fog the catalogue closed on Thurs
day.
The Washington times., 1907-08-02
PIMLIC0 ANNOUNCES
FALL STAKE EVENTS

BALTIMORE. Aug. 2-The stake
events for the Maryland Jockey Clubs
fall races were announced this week.
together with the conditions,
Secretary Riggs states that the pros
poets for the coming meeting are brighter
than they ever have been. and everv-
thing looks as If there would be more
horses at the track than ever before.
1t practically comes down to a ;noint
filled
This is taken as an indication that the
club is ready for its change to a bigger
I1IHe' ana tnose who know say that
when the club does move and fs ahIn =. :.
draw from Washington. Wilmington, ana
Philadelphia for support. It will speedilv
go up the ladder of sporting Importance
The Washington times., 1907-08-02
BROoKLANDS TO PLAY
BALTIMORE NINE

A game Of interest TO suburbanItes will
be pulled of tomorrow afternoon at the
BrooKland grounds, wleE the Independ-
ent team OF that place meets the I.Gfsy-
ettc aggregation. of Baltimore. ShIpley
will probably be in the box for the
Brooklands- The game will be called
at $50 o'clock.
The Washington times., 1907-08-02
Standing of the Clubs
ENGLISH CHAMPION TO
RUN IN NEW YORK

NEW YORK, Aug. 2.-As AIfred
Shrubb. the English champion runner.
who lowered the tWo-mile worlds run
ming record at Boston. has entered for
the one, three. and five-mile races at
the annual Scottish games or the New
York Caledonian Club. Washington
Park. Grand street between Maspeth
and Newton. l. l., Labor Day. a move
ment is on foot 10 pit Longboat. the. IN
dian. against him on that occasion.
The Washington times., 1907-08-02
BR0OKLAND BINGLES
PUZZLE NESC0 NINE

TIE Independent Brooklands easily
defeated the Nesco team yesterday aft
ernoon by 10 % T.
Tho Nescos were showing Up well un-
I'll the fourth, wnen Graham went to
pieces, and his support followed suit. In
the third the visitors did their best
work, they scored three tallies off a
single, homer. and an infleld error.
The Brooklands got down to business
in the sixth, polling six counts by heavy
hitting DUNCAN played a star game in
all departments.
The score:
z.,-, r. H. E.
~ ooAidllu- T-lQ 6 1
Nesco. o................... D 0 8 0 IL 8
The Washington times., 1907-08-02
THE SURVEYORS TAKE
DISTRICTS MEASURE

Surface clearly outclassed the Survey
ors yesterday in the District circuit.
winning by 70 8.
Beckett twirled a good game for the
losers. but patched up team gave him
ragged support and made a whole series
Of glaring errors.
Senior, America, and NeIlgan each
scored two two-baggers.
The score:
tB-HE
Surveyors s.------ -..--- o a
The Washington times., 1907-08-02

Cautillon received a telegram lest
night from Cliff Blankenship saying ne
had heard Of Warmers injury. and
would be on hand today. The noble air
great hit with the players-nit. They
explained That the real reason fc'r
Blanks sudden determination to return
from his scouting trip was 10 see Johu-
son pitch IL was Blankenship Wko
uneartned johnson in Idaho, and has
coached him along and prepared MIN
for his major debut He ia conndont
the kid will be a wonder and told Can
ullon that IL Johnson appeared as a
failure here he would buy the Idahoan' )
contract for $500 as a speculation.
The Washington times., 1907-08-02
Totals


First base by errors-Chicago, 2. First
base on balls-On T. Smith, S; OF c.
Smith, 2; of Pattsn, l. Left on bases
Washington, 3; Chicago, 8. Innings
by Gehring. !. Hits lnada-Om c. Smith.
2; cff Patjen. 4; of Gehring. l. Struck
oUJ-3y r. Smith. s; by Patten 2. Three
base hlt-ROhe TwO-bnsn hltE-Rohe. c
Jones. Sacrifice hits-Patten, Davis.
Stolen baSes-Ganley, Hahn. Double
play-F. Jones 10 Donohue Cmplres-
MessTs. Evans and Sheridan. Time Of
game hour and 80 minutes
The Washington times., 1907-08-02
EYNON IS WINNER
Of CAP PTAINPS CUP

E. B. Eynon won the finals in the
tournament for the Captains Cup on
the Columbia links yesterday from T.
Pliny Moran by three up. two TO play.
Both men played an even game. first
one winning a hole and then the other.
II wes close match. and a missed
stroke meant the loss OF hole. At the
turn Mr. Eynon was one up, four OF the
nine holes having been halved. Eynon
Won the eleventh and the thirteenth.
while Moran won the twelfth. while the
fourteenth and fifteenth were halved.
At the sixteenth Moran micsed a put
on the green. and holed out in six.
while Eynon made the hole in FIVE. win
ming the match three up and two 10
play. -sssa
The Washington times., 1907-08-02
STATESMEN POLL A
DECISIVE PLURALITY

BrookIand lost to the Congressionals
yesterday by II TO G.
Neither Hunter nor Bielaski was IN
his usual good form, and each made
two errors. although the latter made a
sensational catch. Mess and Thomas
handled The willow to excellent advan-
tage.
The score:
RH.E.
Brookland..... ! 0 2 o SIS Z
The Washington times., 1907-08-02
WEIRD DOINGS
MARK FINISH
Two Young Riots-Forfeit
in Capital City.

A game at which 1900 played was pulled
on IN the Capital City League yesterday
The baseball score was: St. Stephens. 1;
Alcysius, 3. Reports from Sibley Hos
pital state that Harry z. Davis. first
baseman Of the Aloysius club, is doing
nicely in spite OF a dislocated shoulder.
still another point of interest was the
suspension Of Captains Hughes and
Handiboe, pending an investigation Of
the active hostilities between these two
doughty generals in the first inning.
Umpire Newman was the referee
agreed upon, but in his absence AIessrs.
la Favor and Mackey handled the in
diCatOrs.
The Washington times., 1907-08-02
Standing of the Clubs.
NATIONAL LEAGUE
Yesterdays Results.

Philadelphia, 4. Cincinnati. 0.
Cincinnati. i; Philadelphia, o.
St Louis. s: New York. :.
Chicago. Z; Brooklyn, 2
Boston, 4; PittsbuTg. Z
The Washington times., 1907-08-02
SCULLERS
REACH OUR SHORE
Sands and Weber in Phila-
delphia for National
Regatta.

PHILADELPHIA Aug. 2--Waldemar
Sand and Richard Weber. from the Hell
las Rowing Club, Berlin, Germany, ar
rived In philadelphia yesterday at /
p m for the National Regatta on Au-
gust g and 10.
Commodore Harry Penn Burke. of the
Schuylkill Navy. and Captain Ketterer.
Of the Malta Boat Club. had arranged
to meet the German oarsmen at Broad
street station and escort them to their
rooms al the Bingham Hotel
Before dinner the commodore took his
guests for a drive through Paramount
Park. showing them the racing course on
the Schuylkill, and several Of the boat
clubs. The Germans were very much
surprised NJ the American clubs and es-
pecially impressed with those along
about Boat HOuse Row. They said that
they mad no clubs in Germany which
" any way compared with the New
York and Philadelphia sthlctIc clubs,
and thaJ the German Rowing Club sys-
tenn was not developed at all along the
lires OF the schuylkill Navy.
German Training Rules.
Mr.. Weber tol5 some interesting facts
about the methods and rules OF the Ger
man rowing clubs. He said that when
a man went out for club crew he bad
TO sign a contract swearing that until
the regatta vas ever he would not
smoke. drink. o. keep late hours, and
that he would both sleep and cat at the
club. agreeing 10 keep such hours for
meals as the coach appointed.
II man in training is caught in any
way infringing the rules he is ty,medi-
ately expelled from the club, and no
other club in the German empire viii
take him up afterward. Tho freedom
ard good fellowship OF the Quaker
crews and clubs particularly struck beth
Mr.. Land and NJ. Weber. and they COM
mentsd upon the fact that American
sport was sport
While in Philadelphia the Germans
viii be the guests Of the Malta Boat
Club. and will row from that club twice
a cay. starting at 10 O'Clock this morn
ing. Sands did not bring a shell with
him, fearing that It would be broken on
the way and intending to get one IN
America
Sands a Champion.
Sands was born In Berlin and educated
at the Humboldt gymnasium. but did
not take up rowing until after he left
college lie Is q wcll-known gymnast
and swimmer. having won several
championships In Germany and also
prizes at the Olympic games in Greece.
he was one OF the four oarsmeu who
composed the foar-oared she'll crew
which won the Kaiser's Cup az the Ger
man races. Sands Is nov thlrty-oue
yeers OF age and has been rowing for
five or six years. He will row IN the in
termedtate singles ct the National Re
gatta neNt week. but does not expect 10 |
compete IN any other American races
although he will not return 10 Germany
for several weeks
The Washington times., 1907-08-02
NINTH STREET BOYS WIN GAME.

The Ninth Street Athletic Club defeat-
ed the Tenth Street team N an errorless
game yesterday by TO l. The features
were the fielding of Colston and the
all-around work OF Dobson and Puryis.
The Washington times., 1907-08-02
Picking Pitchers
Is Hard Problem
For the Manager
Cantillon TearfuIIy Explains How He Used
Gehring and Smith on Wrong Days.
Thinks johnson Will Deliver Goods.
BY THOMAS S. RICE.

i am going out to the Old Ladies'
Home and get one Of the inmates TO do
my baseball forecasting by tea leaves. ="
growled Manager Cantillon of the Wash
ington team this morning
This thinking Of planning a line of
action has got me going. and ! don't
believe the seventh son Of a seventh son
would have any better luck than a
cross-eyed Swede with a hair lip in de-
Gliding how to select batteries When I
learned Walsh was TO pitch for Chicago
on Wednesday 1 decided 10 use Gehring
for very simple reasons In the first
Ilace, without being a gutter l knew
that with Walsh going good we would
hardly have a chance to score. and to
use one OF the men 1 considered my
most reliable twiriers would have been
a case Of using up his surplus energy
without getting any definite results.
Gehring Jared CantillOn.
Therefore, I named Gehring. He was
not one Of my regulars. but considered
him promising youth who might land
against the SOx, for when one Of those
spitters like Walsh goes wrong you can
bang out enough sudden runs TO require
only moderate twirling on your part,
while II Walsh were O. X. We couldn't
win anyhow and Gehring would at least
get the experience.
Now see what happened. Walsh was
good, as we expected, but Gehring. in
stead Of being a wild cub getting a
training stunt put up one OF the best
games a Washington pitcher has shown
this year. letting down the Sox with
three clean hits and three punky
scratches. 1 nearly fell off the bench
when II dawned on me what the kid
was doing and all against Walsh!
Mistaken About Smith.
Now. take another peep at what YOU
set in a baseball shuttle. Yesterday
when the Sox named Frank Smith /
thought we had a look IN and selected
Charley Smith as my most valuable
and reliable twirfer next to Hughes.
Frank Smith was as wild as March
hare and we also hit him in spots. while
Charley Smith didn't have enough pitch
ing in him TO beat the taHender in the
Independent Suburban League. II Gehr-
ing had been on the job yesterday we
would have handed the Sox lemon.
Instead, he had worked on the wrong
day"
In speaking about Gehring. Manager
Cantillon said:
Il haven't seen a green pitcher from
the minors show such finished form
breaking into the majors in all my
career He is the real classy boy in
my opinion. and even II he doesn't set
the world on fire this season you can
take ii from me he will be in the ma
Jors for many. many moons. All the
sox wanted 10 know where 1 got him
and what / was going to do with him.
The Washington times., 1907-08-02
GARFIELD STARS WANT GAMES

The Garfield Stars want games with
teams averaging thirteen
years. Address Manager George Hughes
l92 Hickman street southeast.