New-York tribune., 1907-11-04
THE LOOMS & HART MFG.

THE LOOMS & HART MFG. CO
As write. 1 have before me THE Daily Ga
zette, of GAINESVILLE Wis, issued October 30
19O', IN which 1 lind the following advertise
ment:
NOTICE TO THE PUBLIC
AS a result of the New York Chicago and MIL
We deem il, our duty to our customers and the
of deposit and savings accounts in cashiers
ehGks may NSw Se aSed fn n A o
iran Transaction % Of all local business and outside bills
Sashiers check Of any local bank will be accepted
new cashiers checks for any amounts desired may
Pc Re Issued therefor 1t is said that 95 cent OF
checks and drafts; it has become necessary tempo
peoples Is as as st It eTef aesS @as and bd e
properly is just as good, but since It is absolutely
deposit in the reserve cities ali the people, Ws be SH
,f ney,e are best served by the steps taken All
until further notice will be accepted only subject
ROCK, COUNTY NATIONAL BANK.
FIRST NATIONAL BANK.
MERCHANTs AND MECHANICS SAVINGS
BANKS IN COUNTY FOLLOW THE LEAD
Issue cashiers certificates the same in Janesville
Beloit drops in Line.
At Clinton.
In Clinton the banks are issuing cashiers GER
phcaes the same as the Janesyille banks and the
than usual ana the people are satisfied with the
system.
At Milton
VII, Tae d, Bank Of Milton % is doing the James
VINE nahKs are doing, and are issuing cash ex-
cept in small sums.
In Madison the banks are issuing ONLY casbier
certificates, and no trouble IS being experienced
In Beloit
The banks Of Beloit are following the lead of
9 J99nesvilie and have a statement in the Beoit
afternoon papers to the effect they VIII use cash
iers certificates the same as Janesville
1t may be said that these forms OF curranc,,
are contrary TO law Yes I'M t1v1ac
no law" 1t is unlawful to break open vour
neighbors house, but If you know It to be on
flTe' IL would be your duty, notwithstanding the
law, to hammer down the door, rescue the fam
iiy' remove the contents, and. If possible, save
the house
That is the commercial situation to-day and
the bankers and business men are going to dis
regard the law and save the business Of the
current credits in such form and quantity as the
occasion requires, trusting that Congress will be
wise enough to pass such laws as will preclude
the same necessity in the future.
PERMANENT CURE.
An issue of credit currency adequate to meet
the requirements of trade and currently re-
deemed in gold con
This principle is followed by every civilized
country in the world except our own
Mark thisl The banking power Of the United
States in 1880 was about $4,000, 0000 900. and now
exceeds $4,000. 100000. or equal to the entire
banking power of the world in 1890. which Null
hall placed at s15,9S5,000,000 To-day the bank
ing power OF the entire world outside of the
this amount 20 per cent or more than $4.000000.
600 is in cashiers checks or current credits
that is, credit currency-and yet while the United
States has three-sevenths OF the banking power
Of the entire world, II has not one single dollar
of current bank credit, although the other four
sevenths of the worlds banking power has the
advantage OF $4,000 100000 current credits, or
credit currency.
on the same basis we are entitled to have
S3,000,000,000 OF current credit, or credit cur
rency.
If this principle were broadly adopted in this
country. II should be- our bank reserves might
be increased from an average of 92-1O0 per
cent to about 20 per cent, and our banking LA
bilites remain practically the same
To explain this statement it will be necessary
TO give the facts more explicitly and fully:
On July l, 1907. there was in the banks ap-
proXimately S1,0OO,0O0.OOO in reserves, and in
the pockets of the people and IN the tills Of the
stores there was approximately Sl2JOOO0OOo
In other words, the people were using more more gold
certificates United States notes and silver GER
tificates or reserve money by % per cent than
the banks held
Can any one give a single reason why we
should use a checkbook for credits to order and
not use a current credit Of the same bank upon
which draw our checks? Is not the cashiers
check just as good check upon the same
bank-indeed, far better-when protected as 1t
should be by guarantee fund deposited with
the United STATES government many lILiTS -,
more than ample TO insure its redemption IN
gold coin?
If the banking institutions Of the country
could exchange S1,OO0O00OOO of cashiers
checks for 81. 1.O00O00O00 OF reserve money now
floating around in the mines. wheat, corn and
cotton fields, and this $1,OO0OOO.OOO added to
the 81 600 O00OO in the banks July l, 1907.
our bank liabilities would be increased only
about 8 per cent, while our reserves would %
increased 100 per cent, and instead Of our aver
age reserve being about 10 per cent. II would be
90 per cent, and this end alone Is sufficient 10
Justify the adoption OF the principle Of current
credits in this country
CREDIT CURRENCY ABROAD.
Scotland has credit currency issued by the
hanks that EXPANDS and contracts twice a year
at the rate of 81 % per capita, or -, ,5Oo0ol
The same ratio would give the United states
about 500 100000 Of credit currency; but we
have not one cent Of credit currency, though we
need II more than any other country in the
world. ,, - 40
BanL of France which Is constantly expanding
and contracting throughout the year at the rate
of 81 73 per capita, or $G7GO00OO
The same ratio would give the united states
s150 600 600 of credit currency; but we haye not
one cent OF credit currency, though we neeo 1t
more than any other country in the world
Germany has credit currency whlch eN-
Dands and contracts four times every year at the
rate Of 50 - per capita, or Sl25O0ooD
The same ratio would give us $lSo,oOoCoO or
credit currency; but we have not cent OF credlt
currency, though we need II more thah any oIher
country in the world.
Canada has a credit currency issued by the
banks that expands and contracts ar tne rate OF
So % per capita every fall, or S25OO0OOO
The same ratio would give the United States
$3.50 600 600 of credit currency: but we have not
a single cent OF credit currency, though we need
n more than any country in the world
This is the story OF the whole civilized world.
Criminal IGNORANCE and criminal negligence have
Drecipitated the present situation.
ON March . 1907. I used the following lam
guage in the House or representatives, anu
venture to repeat 1t here:
In fifteen years our population has increased
IS OOO00O and the capita pocket ana t!l m9ngy non
of our people has gone up HUll gif,, 90 ~ " higher