The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1907-11-01
THE MONEY rIEp UP.

course in limiting the cash withdraw
ais from their several institutions;
and the public generally. we believe,
when they understand the real situa-
ton, win agree with this proposition
The situation, as we see it, is this;
There is no money panic; there 10 no
business depression; there is nothing
the matter except a Wall Street furry
| in stocks, which constrained the
banks of the city TO adopt this cash
limit rule for temporary purposes;
ami the banks OF other cities, large
and small became effected by that
rule. and are forced to adopt the same
in this way: The Nashville banks
have large balances in New York; and
the Columbia banks have balances In
Nashville. While the Nashville bal
ances are temporarily tied up in New
York, the Columbia balances are tied
up in Nashville: but it is a tie up
simply; just like freight becomes con-
gested and a tie up follows sometimes
inst like there is a shortage OF coal
sometimes; not because there is no
coal in the mountains, or on the mar
ket but because it cannot be freighted
10 reach given point at a certain
time. ana a shortage follows.
So there is no lack of money in the
country; the country was never more
prosperous; money was never more
plentiful; just as plentiful now as 1t
was year ago. But there became a
sudden and unusual and unexpected
demand for money in New York, and
the New York Clearing House adopted
this emergency rude, and of course
the country banks were compelled to
protect themselves by adopting the
same rule.
There is no cause for alarm. In
New York few so-called banks, but
really nothing more than brokerage
concerns, because OF speculation In
stocks, became embarrassed, but none
Of the real banking houses have been
hurt. And outside of New York not
single bank has been reported in the
least distress. And no question what
ever has been raised about a single
hank in this state. And there being
no cause for alarm one good reason
for this rule is to protect the we'll
balanced depositor against the frantic
effort of the panicky deposition, who
might start some real trouble by de-
handing what he has no need for, his
bank balance, in cash.
That is the way runs are most often
started; and any bank can be tempo
8rarfly embarrassed by a run. And
there being NO cause for alarm, the
best thing that could have been done
was to take precautionary steps
against any alarmist from getting In
his historical work. 4io'3'
After all, the banks are only asking
the people to go on in their normal
way. Nearly all the business Of the
commercial world is now transacted
by checks. Comparatively few people
use cash except in small amounts,
Bank checks constitute largely the
circulating medium of the country.
And this temporary rule Of the banks
simply requires that for the present
this same circulating medium, the
bank check, which now does nine
tenths Of the business OF the business
world, shall be used just little more
freely. IA
The rule is just a little new and
novel, but not dangerous. Don't be
afraid Of 1t. 1t won't hurt you or
your credit II you owe anybody any
thing, pay them with check. Your
creditor will be satisfied, and that
ought to satisfy you.
And last but not least, be good
citizen; do not try to magnify the
trouble. Do not try to excite or irri-
tate the public mind DO not be a
knocker on the banks The banks are
all right. Nobody questions their
solvency or their good management.
Go on about your business, and adj
wise other people to do the same, and
the general business interests of
Maury county, and the general pros
perity Of the people Of this county,
will not be in the least disturbed by
the little furry produced in the actual
cash money market by the Wall Street
gamblers.
one thing that ought to be done ia
this The Treasurer Of Uncle Sans
money ought to stop going to the
aid of this Wall Street gambling
clique, and on the contrary they should
he outlawed from the business world.