The Brandon news. (Brandon, Miss.) 1892-1961, 1910-09-29
MONEY FOR ALL
IN THE FALL
Expected Shortage In Finances
Will Not Occur II
Is Said
BANKS ARE WELL FORTIFIED
Crops Are Bountiful and Money to
Move Them is Coming in From
Europe Rapidly Enough

Westinghouse is unlikely that
there will be any shortage of money
this fall anywhere in the United
States. This is not to be construed
as "a promise to any particular indi-
vidual, but is the large, impersonal
view of the treasury department.,
whose hand is on the pulse of the ma
tion's financial and business life and
represents the opinion of officials who
constantly watch for symptoms of
any stringency. In their opinion the
danger mark, if there has been one
during the several months past, has
been left astern. They give these
reasons for their predictions of plenti-
full money:
Primarily the banks saw what look
ed like a money shortage coming sew
eral months ago. They knew 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 reserves
and cut down risky loans and bonds
of other securities which might not
be easy to sell, have been turned into
money. New loans have been closely
scrutinized
By doing all that the banks have
fortified themselves against an ener-
gency. How we'll they did it was seen
last week when $10,O0O,O0O was moved
out of New York to other banks and
done very easily. Panics foreseen
never come, hnanciers say.
Money is plentiful in England and
on the continent of Europe. 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 bumper
one.
Corn will set new record. Four
ffths 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 100000
bales greater than it was last year.
The other crops are reported very
large.
Next month it is estimated invest
ors over the country will receive $170.-
100000 in dividend checks from in
dustrial, railroad and other corpora
tons. That will add, of course, to the
money generally in circulation
The record crops are one argument
against money shortage, because
they mean the United States WILL have
a great amount of food and manufac-
turing materials to sell to Europe.
Europe in the meantime will be sell
ing material to America, but undoubt-
edly not to the extent it did last year,
and therefore will owe Americans
money. This will be paid in gold,
which will come across the ocean in
bars. The banks will take it to the
United States minis or sub-treasuries
to be stored away in the vaults and
the 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 hnanciers call ''the bal
ance of trade" and in such an instance
it would "be in our favor" IF the re-
verse were true, if the crops had been
poor and Europe had sold the United
States more than it bought, the United
States would have to pay the differ
ence in gold, as it did in August to
the extent of 100000 and the "bal-
ance of trade" would be. against us.
The question may be asked why the
treasury department could not help
the banks now as it did in 1903. Be-
cause it has not the money. The ex-
pense of digging the Panama canal
is from 100000 to 100000 a
month and is a great drain on the ma
tion's ready cash.
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 is
sue $500,00O,000 extra currency, as the
emergency currency law provides, if
they have to-
1t was the intention to build the
canal with ready money obtained from
sales of Panama canal bonds, but for
many reasons bonds could not be sold
on favorable terms and Uncle San,
has been paying his canal workers
out of the cash drawers until now
the canal owes the treasury $l25, 900
900.
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