New-York tribune., 1907-11-04

furnish to his customers the kind OF credit they
may m @ ask for If they want book credit subject
the want current credit that passes by delivery
exemption in gold coin which is insured by
b The farmer, bringing to town his potatoes corn
seI7ss +b beatue wheat cotton and other products
seeks i'm TIN 10 Ihe local buyer and getting his pay
,s-ba buSpOsll, upon which the banker pays him any
Dop per cent Just according to how large the de-
b9ntterrS 10 ana now long It is to remain with the
he me m banker in return sells this credit for which
farmer or local dealer for higher rate of inter-
ing credit liner words the banker is buying and sell
CITIES % 6uys and sells produce. shipping it to other
viii send away ali his excess Of U creds iGs pa Fe
tmlSIReI "A where he can sell them at the best price
leans meat we epG nave cotton market at New Or
credit marfet at al ana grain market at Chicago and
The loans made by the bankers or credits so,a
5SSI,hf Sfn Nv are approximately equal to the credits
ha6nai gTtTate ha8 September 1906 the loans of the
To coTpI ISGa JePosts t We're 4199, ,S3S.31O 30.
aboy eUrHpel me great mass of people to carry
Of certificates instead Of ban C9ln crddt IN It the form
10 10 Ine people and as absurd to pass law
paV for IN the WagonS tgsS With gold tires Who would
instead Of credit currency? Do You thing the
by sysfeg VINO no. is carving aor the load imposed
serve money into the pockets Of the Deopq Gp Te i1
S'p Bo ydn GI t current credit convertible into gold?
Grain aGd paying paying II any more than the stock
tiYac
pr6ducTe WTTe so 0geTous burden imposed upon the
The effecte m muuStres @ OF the country? What would
IN in The Ti,o}HWV0S Of the reserves now locked
MHeGe " per o they would sustain loans Of more fb
But oI5y Win reserve Of 20 per cent?
vboTaS increased and this is the very heart Of this
Our people are using the reserves Of the country
sbo1Id Go lin tbI OF exchange when current credits
precisely rs the demand comes and goes 81 raqtjS
as perfectly the variation in cash TRANSACTIONS oe
m osnk credits. Increased wages and increased cost M
for raeb nage @ MADE greater and greater demand
our reserves the business Of the country has rons
to such extent or what is Se eaye same sold 3D. credits
haze due Ioans TO such an extent. that the reserves
untl now they are only 992 per cent against a 73
Per cent In 1895 in all the commercial hanks s-ra
uTxa, Ix STATE. trust companies and private banks
II one-third Of the reserves hidden in the pooIets
the i nbap peoPe or the gold they have taken from
tb r1anieIS or trade since 1895 the banks
ISos r&t5o @ OF our reserves would be as high as in
rockets Of the people in the commercial hanks
% - me o,e county, our reserves would be 20 per cent
Thus 1t IS clear that the reserves in the country
ai are more than ample for any apparent demand for
{t Ia1eg we're IN the bank vaults instead Of in the
Thus it happens that the condition OF our national
sor oro rs scon that the people are constantly ao
become more prosperous. Indeed, our financial and
currency ponCy Is such that prosperity must
perity-an anomaly but the direct and natural fruIt
OF our ignorance and wasteful folly.
Nor shall We escape the evil consequences Of this
ffI GpnGluon which Will come to us in various ways
until We recognize two three great economic
TEN upon them. 0-'~' SSS-
The first IS that the place for our reserves Is IN
the people. N ''AiS VI
The second is that there IS not tho slightest az,
credits. ~ -iN O'AiirI4Oto
The third IS that tho required reserves shou1d Ia
ample; the handbook credits passInF WITH nerfoc9 I
FACILITY into the banknote credits, and both cur
rently convertible into the reserves ~
When we recognize and adopt these DrlncfnIas IN
corporatng them into system. our rates OF in
tArest VIII become practically uniform throu-boIi+
me country and throughout tho year and not Eng
land but the United States VIII be the financial
centre, and the worlds commercial bills Of er
c.ange VIII bear the signet OF the eagle and not
or the lion and the unicorn