The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1907-11-07
eLaAa.Ne l4ousg cERTIFIoATgg

CLEARING HOUSE CERTIFICATES
The present strineeney. in the mon
ey market has made the Clearing
Houe Certificates a necessity. It
has come as a condition. remedial in
its nature and farreacbiag in its e.
feet. The News believes that con
eress ought 10 pass a bill to iegaIiza
ths Clearing House Certificates and
thus aive II a standing in The reg.
lar subsidiary coin OF the realm. Ga
a matter Of feet 1t is real money. has
pledged back Of it ample securities
TO place it Ga a par with treasury
certificates and bank notes and 1t
ousht to have that standing.
The News is pleased that the peo-
PIE Of Brunswick are taking kindly
to M matter and we appreciate that
civic ride and local interest that
DiscuNng The quesA ~ naking
legal the Clearing House Certificate,
The Atlanta Journal OF yesterday
very wisely SAYS
"Tae etringency in the money
market and the financial condition
in general haYe brought forth many
suggestions ~ to how The sitaall0n
should be met in the future, but the
Philadelphia Press comes forward
With an idea which appeals very
strongly t. The common seuse u the
people.
In practically every city Il lay
importance in the United satdY the
banks have adopted the plan Of fat.
aning Clearing House Certificates as
the best mean to keep the currency
st home. It ia recognized fact that
tia SO certificates are as good It's
gold In Atlanta, for example. there
Is dollar and half Of good col
lat raj behind every dollar issu ia
the form OF certificates, and lie
credit Of every member OF the " lr-
ing House is pledged 10 Che red D-
ton Of the certificates There ~
not the slightest question on The
part to the people as to TIE validib
OF the certificates. and they have
quickly found their way into t5aa
eral channels Of 2de.
pr,be ,,,sae,,, "A ssnt,,a -
tificates cgo loiasq
1t may be IS =
issue Of thea ites is a viola
lion OF the lo' he law.
It should beNef horne in mind
In this connection lat MS a con
tract between th u,ss and peo.
pie, the certificates are perfectly val
i'd They hove the same validity as
any other contract WHEN has been
entered INTO good faith, and there is
nor the slightest reason for looking
anon the certificates as any thing but
contract of the highest character.
"At the same time it f. probablf
. violation Of the currency laws os
The united States 10 issue these r
tificates.
The Philadelphia Press, therefore,
makes the suggestion that congress
enact law establishing the validity
OF Clearing House Certificates, ana
the suggestion has met with very
general approval A period like this
is liable to come at any time. If in
the midst Of unprecedented prosprity
and. in deed as a consequence of it,
to a large extent-there can be such
stringency as the present one in
the money market, we make take it
for granted that it is liable to occur
at any time. We must have some
form OF emergency currency, and
the Clearing Certificates ap-
pear TO be ths gical answer to this
requirement
but the banks should not be
compelled to violate the. law in order
to meet these emergencies. The law
should be changed. and Clearing
House Certificates should be Legal
lied. The banks viii. of course,
adopt this system only as d last re-
sort, and will always see to it that
the certificates are backed up by
sood collateral but they should be
spared the necessity OF violating the
law in order TO expand the currency.
1--WE hope to see the suggestion Of
tho Philadelphia Press carried out.
Eyn though the credit currency plan
goes through, rs endorsed by the
american Bankers Association, the
occasion may arise for issuing Clear
ing House Certificates, and the banks
should be able TO do without yiolat-
ing the law" "a
Brunswick is TIE bes "a in
Georgia. even if it is han 10