The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-09-28

Washington. Sept. 25.-It is unlike
ly that there will be any shortage of
money this fall anywhere In the Uni
ted States. This is not to be constru-
ed as a promise to any particular in
dividual. but is the large impersonal
view OF the treasury department.
whose hand Is on the pulse of the
nations financial and business life
and represents the opinion of Off
cials who constantly watch for symp-
toms of any stringency. In their
opinion the danger mark, if there has
been one during several months
past, has been left astern They gave
these reasons for their prediction of
plentiful money:
Primarily the banks saw what look
ed like a money shortage coming
several months ago. They knew that
they could expect no help from the
United States treasury, such as they
got in 1908, and prepared themselves.
They have piled up gold, built up re-
serves and cut down risk loans, and
bonds and other securities, which
might not be easy to sell, have been
turned into money New loans have
been closely scrutinized.
The banks have thus fortified
themselves against any emergency.
How we'll they did it was seen last
week when $4,000 600 was moved
out of New York to other banks and
done very easily. Panics foreseen
never come, financiers say.
Money is plentiful in England and
on the Continent. That is always
said to be a good sign in making a
prediction for this country.
Nearly every crop in this country
this year is reported to be a bumper
one. Corn will set a new record.
Four-fifths of the crop has been
gathered, so the chances of loss from
frost is small. The oat crop is the
greatest in years.
The cotton crop will be 1000, 900
bales greater than it was last year.
The other crops are reported, very
large Next month it is estimated in
vestors over the country will receive
$170, 100000 in dividend checks from
industrial, railroad and other corpor-
ations. That will add to the money
generally in circulation.
The record crops are one argument
against a money shortage because by
their means the United States will
have a great amount of food and
manufacturing materials to sell to
Europe.
Europe, in the meantime will be
selling material to America, but un-
doubtedly not to the extent it did
last year and, therefore, will owe
Americans money. This will be paid
in gold, which comes across the ocean
in bars. The banks will take it to the
United States mints or sub-treasuries
to be stored away in the vaults and
gold certificates will be issued to
represent It, Thus, several more mil
lions of dollars will come into circu-
lation for business.
This is what financiers call "the
balance Of trade" and in such an in
stance it would be "in our favor"
The question may be asked why
the treasury department could not
help the banks now as it did in
1908. Because it has not the money.
The expense Of digging the Panama
Canal is from $4,000, 900 to $4,000
600 a month, and is a drain on the
nations ready cash.
1t was the intention to build the
canal with borrowed money, obtained
from sales of Panama Canal bonds,
but for many reasons bonds could
not be sold on favorable terms. and
Uncle Sam has been paying his canal
workers out of his cash drawer, until
now the canal owes the treasury
s125, 100000.
One of the best reasons why treas
ury officials believe there will be no
money stringency is that the national
banks are preparing themselves to
issue $500,000,000 extra currency
as the emergency currency law pro-
Vldes--if they have to. Secretary
MacNeagh believes the common
knowledge that such an immense re-
serve Is available, will stop any gen
eral movement to take money out of
the banks to hoard it in stockings.
BEFORE, THE IICOnnI|v,