The Caucasian. (Clinton, N.C.) 188?-1913, 1911-11-16

on4ra;Ions the Southern Railway
Company aims 20 aid IN the car
ring out OF this polIey. So far
a. IL can consistently do 50. 1t
allows the money II receives In
payment for freight and passen-
ger transportation TO remain In
the localities In which IL In col
lected. in the shape OF deposits
In local banks. 20 be drawn up
on from time 10 time a. occasion
may require In payment OF
wages and other obligations"
What President Finley states
about the need In the South OF more
money during the fall and winter
when the cotton crop ID TO Be- moved.
and also the evils effects from the
failure TO have sufacient money al
ways At such times IL fact that ID
patent to every one. The policy adopt
ed by the Southern Railway TO keep
Its funds In Southern banks along
the line of the railway. instead OF
sending the same TO New York. in
order TO help relieve a local scarcity
of money. Is very wise and COM
mendable. That. however, is only a
partial remedy for the trouble, as
Mr.. Finley admits.
The establishment OF postal saw
ings banks by the government is
still greater remedy, not only to pre-
vent the congestion OF money In New
York when 1t is needed in the South
and West, but it is also a most eff
cient means for preventing panics by
putting that much money out beyond
the control of the Wall Street bank
ing ring. The panic which started in
Wall Street In 1907, TO which Mr..
Finley refers, was purely and simply
bankers panic. 1t was an attempt
to create a panic over the country at
the very time when the money which
New York had boarded was greatly
needed to move the crops. Nothing
prevented a bad panic at that time
except the fact that the farmers in
the South and West were nearer out
of debt than they had been for many
years, and that the local banks had
wisely kept most Of their deposits in
stead of sending them to New York,
as had largely been the custom in
the past
A further remedy, however, is
needed. President Finley refers to
this in general terms by saying that
the great cotton crop which the far
mers Of the South have to move in
the fall, should become a basis on
which credit should expand rather
than contract"
Mr.. Finley, further on, says that
some change in the currency system,
Ito meet their seasonal demands for
cash and to expand their credit with
in safe limits will be benecial to the
entire country" In this statement,
President Finley is outlining in a
general way exactly what the farm
ers have contended for in the estab-
lishment of what is known as the
''sub-treasury" plan.
The contention of the Farmers
Alliance, which put forth this relief
for these very troubles. was that
cotton is one Of the great staple
products which the whole world
must have, and which cannot be de-
Perforated by being stored. This be-
ing so, the plan of the Farmers Al
lance was to have warehouses estab-
lished in which the farmers or mer-
chants or millmen or anyone else
could store cotton which they had
and receive therefore q warehouse
receipt. and that then there should
be issued On such warehouse receipt
up to a certain per cent Of the face
value OF the same, cotton certi-
ficates" which should circulate q.
currency just an . gold Or silver Ger.
acate circulates, the same to circu.
late as long "a the cotton II stored
and to be retired when the cotton /,
withdrawn from the storehouse.
No one will deny that q "oottor
certificate" 80 issued will be as SOUND
currency as q gold certifoats" o,
"silver certificate and besides, i
would make an automatic elasticity o.
the currency at the very tine whel
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