The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-12
TKE FINANCIAL QUESTION.
Review of the President Financial
Situation and the Need for Elias
tic Currency by Ono of tho
South's Brainiest Men-
Takes an Optimis-
tic View of tho
Situation.

York his views on the present finan-
cial situation and the need for elias
tie rurrcAcy. Mr.. Tonplins is we'll
known in business circles i'm South
Carolina and ON acrNllnt OF his rrrog-
nlZrd superior JUDGMENT in such mat
ters. we publish below his commune
cation. which appeared in the Char
lottc Observer:
New York, Nov. j.--In latter wears
the United States has been very pros
porous. Wages have increased. thc
value Of all farm products have in
&'rea.Srd and everything which money
""'yS has Increased. While these
changes in values have been ..oiny Oh
The ~olumc of money in the country
has had no prnpnrtionalc increase.
1t used to take $25 to $50 in cash to
pay for ii bale Of cotton. Now it
takes 500 to $50. Three hundred mil
lion dollars used To- handle the crop.
Now Il takes NOR" than six hundred
mlIlj"n. Here in New York | am
En!d i; ,alc> sixty thuu>and dollars
per daN to pay street ear fare ON the
Mctr"l"llIan or Imtcrbor"uyh Rail
way, If that : The RIGHT name for fine
combine. few years ago no such
amount WAS required. Prosperity has
increased the riding on the street
ears and railway trains all over the
United States and il requires more
cash. Wages are greater and require
more cash.
In Tn" face Of this situation and in
the very midst Of an abundant pros
perliy llmid people lock up and hide
away Che currency.
ili"h~plirrd cotton and good wages
mad" good condition. In times like
these when times are good but only
ready cash is short everybody uu.ht
I" pnl money in the banks t. keep
The good prices up. Taking money ont
of rircu!ai"h tends tu decrease prices
and wages and whoever does il is con-
trlbulln- to break down the rood
prices for farm products; and good
wages
1t : Il little like the ~hip-wrcckrh
mariner who saw water everywhere
,and not one drop to drink
There is abundant property and
E"nd business and the only trouble IS
. :Shorla~r of actual currency and this
rs due I" action of those who lock il
mp or hide il and take il ont Of cir
GuIatiun.
Fhr NEXT congress will pr,:habIv
amend Ghr barking Law 50 AS to allow
the banks /" issue currency in times
Of panic pressure to take the place of
.hal which i" taken ont Of cirrula-
tirn. When lhat is done we may have
*Gn""Z"> but net disastrous panics
Whrrr u iilu nr r"rpnratiun ,lnin"
good ''u~iHr>S has 10 sim, down be.
cause ii cannot &c, the rurrrnry ln
pay Wages. buy and pay for farm
products and nt!NrrW i->r keep a1ricu,-
tur". M:a"ut'IrtUr,# and commerce.
moving.
On ''1' Suh.irc' Of an elastic rur-
rrnry the ST. Louis GIohr-Dcmocrat
SAYS:
'The present tension shows what
has often been shown before. that our
currency system needs little more
elasticity than il has had in the past
third of II century. 1t does not re-
spond quick enough to new demands
for additional circulation In a GER
tam degree clearing house ccrtti-
Gates supply his lack. But this en-
%r&'ncy currency is available only as
u means Of meeting the balances be-
tWrra the banks.
'S"mr sort of an emergency cur-
rrnrN, however. may have to- be adop
t"d. which will be available fer usc
anon" the people. Many plans fer
creating this sort Of currency have
been suggested. The Suhjcc, i> diff
rult. rs Is shown by the fac, thot
bankers and finaacicrs in ocncr,l
differ rs to tine sort Of currency wh;cl,
would best meet the demands Of =
situation like that which the country
ES now passing through.
Currency which will cynond v,on
The need arises and contract whom
the occasion ends and which will no
safe at all times is what the conntry
requires This is a subject 70 which
our fmancicrs and statesmen should
give immediate attention."