The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-11-12

MI. u. A. lNmpklnS, OF CnarlOtte,
the foremost citizen of North Car
olina and one of the South's BRAIN
lest men today has written from New
York his views on the present finan-
cial situation and the need for elas-
tic curreHcy. Nh. Tompkins is we'll
known in business circles in South
Carolina and on account Of his recog-
nized superior Judgment in such mat
ters, we publish below his ccmmuni-
cation. which appeared in the Char
1otte Observer:
New York, Nov. 5.-In latter years
the United States has been very pros
porous. Wages have increased, the
value Of all farm products have in
creased and everything which money
Buys has increased. While these
changes in values have been going Oh
the volume Of money in the country
has had no proportionate increase.
1t used to take $25 to $50 in cash to
pay for a bale Of cottoA. Now it
takes $50 to $50. Three hundred mil
Zion dollars used to handle the CROP
Now it takes more than six hundred
million. Here in New York [ am
tcld it takes sixty thousand dollars
per day to pay street car fare on the
metropolitan or Interborough Rail-
way, if that's the right name for the
combine. A few years ago no such
amount was required. Prosperity has
Increased the riding on the street
cars and railway trains all over the
United States and it requires more
cash. Wages are greater and require
more cash.
In tae face of this situation and in
the very midst Of an abundant pros
perity tinid people lock up and hide
away the currency.
EHigh-priced cotton and good wages
made good condition. In times like
these when times are good but only
ready cash is short everybody ought
TO put money in the banks to keep
the good prices up. Taking money out
ofscirculatioa tends to decrease prices
and wages and whoever does it is con-
tributing to break down the good
prices for farm products and good
wages.
It's a little like the ship-wreeked
mariner VINO saw water everywhere
and not one drop to drink.
There is abundant property and
good business and the only trouble is
shortage of actual currency and this
is due to action of those who lock it
up or hide it and take it out Of cir
eulation.
The next congress will probably
amend the banking law so as to allow
the banks to issue currency in tin IS
Of panic pressure to take the place Of
that which is taken out Of circula-
ticn. When That is done we may have
sgueezes but not disastrous panlcs
where a firm or corporation doing
good business has to shut down be-
cause it cannot get the currency to
pay wages, buy and pay for farm
products and otherwise keep agricui-
ture. manufactures and commerce
moving.
On tie subject Of an elastic cur
reney the St. Louis Globe-Democrat
says:
''The present tension shows what
has often been shown before, that our
currency system needs a little more
elasticity than it nas had in the past
third of a century. It does not re-
spond quick enough to new demands
for additional circulation. In GER
tain degree clearing house certif-
Gates supply his lack. But this en-
ergency currency is available only as
a means Of meeting the balances be-
tween the banks.
"Some sort Of an emergency cur
Tency. however. may have to be adop-
ted, which will be available fer use
among the people. Many plans for
creating this sort of currency have
been suggested. The subject is diff
cult, as is shown by the fact that
bankers and fina1ciers in general
differ as to the sort Of currency which
would best meet the demands of a
situation like that which the country
IS now passing through.
Currency which will expand when
The need arises and contract when
the occasion ends and which will be
safe at all times is what the country