The Cairo bulletin., 1910-10-28

. 49, 1880
rose, hut the land hasn't, not yet. SO
land prices have gone up In every sec
tio9 o. 'te eest ard the cash to eff.
feet these biz increases In valuations
has come out Of the BANKS and not
out OF the land. In such cases, sredit
becomes the harlot of speculation,
rather than the handma'den or cor-
~ e~' d 40 "~c~nat,tio~ ~
these two. the former will always
owe. bid Legitimate demands, and taFe
the goods.
Finance referred primarily, to the
"finss' the finish, the harvest, tire
completion, inst rs II ought to d.
toaav In the production OF Gro IS
labor offers his m'nistratiors. as drer
~.e~ecr'~s ~ th4ir h~arvest. BIT ths
~er'u of finance Is called forth mos
frl'v In their MARKETING, when she
~ates setfle ~serts, raw~ding hin
"rh0 Aott s~d tat're m and carrvine
the load until the processes of co".
sumption nave been completed aud
the chain joined. These processes
can never cause a pan c or a depress-
ion any more than sunshine can
cause gloom. But when finance stens
into the beginnings of things, CAPT
talking hopes and funding expecta-
! tion~s--creat'ng paper profits fro
fields that are untitled or mines all
/ yratnpnsAAl AZ To tt,,,u ~. Ylattun D. I NAV
in this case. have made too sweeo''g
a generalization, and in some in.
stances the finances of commercial
banking may properly afford ASS
lance in harvest, o. -anor, or eve
seed in the spring time. Neverthe-
less the principle holds good, that the
real function Of finance Is at the fin
ism OF production, rather than at the
beginning.
Commercial credit has to do with
the processes oef consumption. Reye
with construction. The former brinrs
about its WI liquidation--the latter
but too frequently the heartsiekness
of hope deferred.
Right here do we approach tae un
DERIVING cause of the one weakness
of the American banking SYSTEM
weakness that has repeatedly
brought on our crises, our panics,
and the resultant ~depressians, name
ly, the fact that we are a growing
country, wild with ambition, and
growing, we have brought pressure
upon u $4,000 subcenters of com
mercial finance to divert their credit
power from the sphere OF commerce
tanother name for consumption) into
the great half chartei sea OF con
struetion, where hope holds the helm,
and far distant shores the reward
And our banks, vowing they would
ne'er consent. have yet consented.
and then, loaded to the guards witr
many excellent, but long lived ant
undigested securities have had te
throw their cargo overheard In time
of storm.
Europe feels no such c~onvlusiors
because Europe is not growing. Car
ada knows no such thralls, because
her banks are far removed from tee
enthusiasm Of local growth and he
development and construction mone
zones from chests abroad, tfe g.
ings Of centuries. But n iris CO..
try we have developed at a tremenf
Gus pace. not always. aaor indeed r.
ten, ratient enough to buiLl on car
tai but In posing a good share Of
load OH credit. In tais, | have tct
YOU tho real reason for these furiou
storms Of finance. max ng American
banking. really the ~grandest syste
ever devised, the reproach of obs r
'ers in all the other countries of tte
aarth.
Wherein is the remedy? Are there
my new roads for us to lay out, o
may we s~tralghten out somes of tire
"rrges and cut down the grades or
the road we have? For myself
voutl 'ate the latter course,
would retain all that is good a.
rand n U present system, mair
tanning the Independence, the autcn
omy and tine magnificent character
.of our banks, but / would add TO tina
system a strong. effective central au
thority, call II by what name you WI
"a rover great enough TO be Of con
.Ifinn0us assistance TO these banks at
Ill times, and poss bly, their saliva
ton in the time OF need. | do no
.apprehend il rs any part of the pro-
vince OF this paper, that | should dis
upon proposed monetary legts-
latson--I only suggest to you along
the line Of what / have alreaI,
said. that II "HnaEce" means any
thing, IL means continuous and eff
fective service in the marketing of
the products Of our marvellous pro
'ductiye country. This service it af-
fords today, under present systems
and present customs, in but an i'm
perfect manner and with a currency
that Is rigid, unresponsive and un-
helpful In tee time OF strain.
Under our present system, when
ever the demand for circulat ng me.
dunn gets great. either through
or abnormal causes, we pay