Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-11-14
SKIES ARE CLEARING
FINANCIAL CLOUDS ROLLING BY
In The EAST.
The mississippi Valley Lumberman
of November 8, on the Financial
Situation in That Region. A Plan
Proposed to Eliminate Feeling of
DiStruSt of Banks,

During the past week there has
been considerable change in the
business outlook. A week ago there
was much gloom in spite of the fact
that clear-headed people knew there
was nothing in general conditions
throughout the country that usually
accompany business depression, or
causes it. Today the feeling is hope
full because that fact has been rec
Ognized by most people, and because
business has in measure adjusted
itself to the new order inaugurated
by the banks. Money is more plen-
tiful and there is a greater DISPOSE
tiOn to permit 1t to circulate. The
prompt action of the secretary of the
treasury in depositing government
money in the large financial centers
and the large imports of gold from
abroad have supplied currency for
the necessary cash transactions in
the east, and the equally prompt ac-
tion on the part of the secretary of
the treasury in notifying the New
York banks that they were expected
to utilize portion of the government
money deposited with them in meet
ing their obligations due Western
and Northwestern banks, has started
enough currency westward to insure
the prompt handling of the crops.
Much more business has been
transacted during the past two weeks
by use of cashiers checks and clear
ng house certificates than ever before
and the country has learned that it
can be done in this manner with COM
paratively little inconvenience. In
fact, it has been demonstrated that
much business that has been trans
acted in other ways can be done bet
ter by the use of these certificates.
The system should be continued be-
cause of it's convenience. There is
no reason why grain and other farm
products should not be paid for in
used by the farmer either for deposit
in his bank or for the purchase of
supplies from the country merchant,
who could deposit it in the bank or
use it in remitting for his goods pur-
chased from the city wholesaler. This
would do away with much of the
transfer of currency balances be-
tween the country and the city
banks. 1T would lessen the demand
for actual money and leave plenty
of the real currency available at all
times for use where it's use is abso-
lutely necessary.
Since the money stringency COM
menced many plans for currency re-
form have been proposed and many
schemes for avoiding similar troubles |
in the future have been exploited. 1t
is generally recognized that much
trouble could be avoided If distrust |
of banking institutions could be elm
mated. Incident to the recent fin
ancial furry were the runs on num-
ber of savings banks and banks of
other kinds because the people lost |
In some instances this |
loss of faith was apparently war
ranted. When the officers of such |
institutions can use the bank funds |
for speculative purposes, no matter
how large the surplus, the institution
is not entirely worthy of trust.
Hence any plan that will guarantee
to the people that these institutions
will meet their obligations will tend
to eliminate this distrust.
In the Piece STUFF department this
week will be found an interview with
a gentleman who proposes plan
that will guarantee safety to all de-
positors. It is nothing more nor less
than the formation by the banks of
guaranty company that will absolute
Iy insure the obligations Of every one
of its member banks. The principle
would be practically the same as that