The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1910-09-27
.PLUNkS WILL Be PLENTIFUL
With Bumper Crops and Balance Of
Trade In Our Favor, G0Od Times
Will Rule This Year

Washington, D. c., Sept. 27.-It is
unlikely that there will be any short
age of money anywhere in the United
States this year. This is not to be
construed as a promise TO any partic-
ular Individual, but is the opinion of
the treasury department., whose hand
is on the pulse of the nations f1nan-
cial and business life and represents
the opinion of qfneials who constantly
watch for symps(5ns of any stringeney.
In their opinion the danger mark. il
there has been one during several
months past, has been left astern.
They give these reasons for their pres
diction Of plentiful money. Primarily
the banks saw what looked like a
money shortage coming several 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 and other securities
which might not be easy to sell. have
been turned into money. New loans
have been closely scrutinized.
Crop. VIII Help a Lot
The banks have thus fortified them
selves against any emergency. How
well they did 1t was seen last week,
when $1O.OO0.0OO was moved out of
New York to other banks and done
very easily. Panics foreseen never
come, fnanciers say.
Money is plentiful in England and
on the Continent That is always said
to be a good sign in making a predic-
tion for this country.
Nearly every crop in this country
this year is reported to be bumper
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 1t was last year.
The other crops are reported very
large Next month it is estimated in
vestors over the country will receive
!$17O,OOO.OOO in dividend checks from
industrial. railroad and other cerpor-
ations. That will add ta 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 manufacture
| ing materials to sell to Europe.
San0l TakeS the Money
Europe in the meantime will be sell
ing material to America. hut undoubt-
| edly not to the extent 1t 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 Subtreasuries to be
stored away in the vaults and gold
lcertifcates will be issued to represent
lit. Thus several more millions of dol
lars will come into circulation for
business;
This is what finaneiers call "the bal
ance of trade" and In such an in
stance 1t would be "in our favor"
The question may be asked why the
i treasury department could not help
the banks as it did in 1903 Because
it has not the money. The expense of
digging the Panama canal is from $2,-
100000 to $4,OOO.OOO 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. hu,
for many reasons bonds could not be
sold on favorable terms and Uncle
Sam has been paying his canal work
ers out OF his cash drawer until now
the canal owes the treasury S125,OOO,-
900.
One Of the best reasons why treas
Jury officials believe there will be nc
money stringency is that the national
banks are preparing themselves to is
sue $5OO,OOO,00O extra currency as the
emergency currency law provides, il
they have to. Secretary MacVeagf
believes the common knowledge thai
such an immense reserve is available
will stop any general movement t<
take money out Of the banks to hoari
it in stockings.