Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-09-26
Message Of Optimism at Association
Brought from Georgia.
COTTON CROP IS GREAT ASSET
Delegate from Germany Praises
American Energy and Advocates
Organization of a Gem
tral bank

most successful ever held by the sssocia-
ton. More than 1900 members have arrived
The report of the executive committee,
discussing the currency question said;
Some relief through financial legislation
is necessary II we would continue the pros
perity with which we have been blessed.
The prosperity of our country Is so great
that toe demands for money are so large
that we are at this very moment suffering
from stringency in money and with no
means under the law by which 1t Is possi-
BILE for the banks to relieve the situation
Governor Swanson of Virginia, addressed
the convention on THE South
Addresses were made by William S.
Witham of Georgia and by Herr Leiffman
of Dusseldorf, Germany, delegate of the
Centralverbond des Deutschen Bankund-
Bankier-Gewerbes Commerxlenrat
south 20 the Rescue.
Mr.. withar said in part:
l come to you from the land beyond the
Potomac, the home of the mocking BIRD,
and where the cape jasmine blooms u
land flowing with butter. milk and money.
l left our farmers engaged In tearing down
old barns and building larger ones to hold
the Unprecedented crops OF 19W1 l left
number of our banker friends trying to ar
range the cost of attending this conven-
tion. left people happy and prosperous
in the prospect of a lucent cotton crop.
left the borrower and the lender walking
side by side. engaged in peaceful converse,
ton. This is not the old south OF which
speak, nor is this the new south thet fur-
nishes this fascinating story of our condi-
ticn, but It is the great south which 1
representt the south which before the clvl
stood first In commerce, nrst IN agrl-
culture, and first In the halls of the ma
tional congress, and which comes To-Day
marching with the tread OF a giant on 70
pace of wealth. Is to become the gold end
of our great republic. am from the land
whose people; on every street and & oywaS nSasS 30
and plenty sit down together at every
board. Yet / am scarce across the border
of Mason and Dixon" line, when l am
told that great strikes arc on up here, that
anarchy is in arrogance, stalks up and
down unmolested; that the 'Black Hand
and Mana societies are here. eluding JUS
tice and detection; that the drouth has
shrunk up your berry crop. and the goldfish
are coursing toward foreign shores, and
that listed securities (more properly to be
called twisted securities). are on the shoot
de-chute, and that impending financial dis
tress stares you all In the face with an on
coming panic, beside which rs is but
baby Every crowd that | have met UP
here are going around singing that old
Methodist hymn. Change and Decaying
All Around ! See"
Limit of Growth Not Reached.
Now. come today. bringing this com
pany of stall-fed financiers words OF cheer
and consolation in the announcement that
this county shall not have o,,,,tfn financial
had. nor can 1t ever have,-a panic at, that
season of the year when the cotton crop
OF the south is moving to take its place OF
power In the world of commerce. Be IL
remembered that It was the early ship
ments In the "fieecy staple" in '95, which
crossed the ocean, and turned the tide of
yellow metal toward our American shores,
thus breaking the greatest panic of all
the ages l am here to tell you that the
huge cotton crop now being garnered, VIII
produce enough of quick cold cash to
quench the flames of dozen panics.
Why. have just read where one of your
prominent bankers has proclaimed that we
have reached the climax OF our prosperity.
take issue with this apostle Of finance
who thus speaks in the midst of our un-
halting growth. l agree with him that II Is
time for all to retrospect, and It Is a time
for investors to introspect. but 1t is time
also for money people to prospect. want
to announce to you that we have a long
way to travel before we shall have reached
the capstone of our commercial growth and
prosperity.
Advocates Central Bank.
After expressing his appreciation OF the
honor OF being privileged to address the
convention. Herr Leiffmann spoke of the
great interest manifested in American af-
fairs by the people of Germany. He con-
tinued:
1t is we'll known fact that the Ameri-
can money market is at present just as
tight as that In the old world. In all
places the raising OF wages and the larger
expenses Of all kinds have depleted the
money and gold which formerly formed
the greatest support, on account of being
visible and always present in the vaults
OF the banks. has been transferred to the
portfolio OF the small people. and that
working man who formerly carried his
small belongings in his vest pocket. has
today locked away gold and greenbacks.
Only after these millions who share now
I'm the standard of cash money have re-
ceived ell that is coming to them will it
be possible to attempt work to a larger
extent. And America at present is only Z
in the infancy of it's work; millions and
millions are necessary for creating new
forests. for construction OF irrigation
works to change deserts into fruit-bearing
tracts. and for extension and double
tracking OF your railroad system west OF
Chicago. l am OF the opinion that the
United States is in need OF such extension
of It's blood circulation, which cannot be
accomplished by restriction Of business
extension must he reached by a new svs-
tenn. 1t must be reached through the
creation and the extension OF the use OF
commercial bills Of exchange and through
the establishment of bank OF banks.
in other words. a clearing house OF all
your clearing houses. 4
The establIshing OF a central bank would
also tend to largely Increase the circulating
mediums of the country. That Is, In Ger
MANY the banks simply keep on hand
daily requirements and maintain their re-
serves with the Reichshank. which Is
privileged TO issue circulation against the
cash which IL denos,ted by various banks
II in the United States You had central
reserve bank. the national hanks would
sums Of cash in their vaults. but would
deposit the same with the central reserve
hank. which would then be nrivileRedi TO
issue It's notes against these daDoslts
when the amount Of cash which Is held
Nv the banks as reserve u tsken into con- 1
sderation ard II is real'zed that the central
10 this amount. YOU can readily understa-d
what an enormous SUN OF money would