The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-10-25

calling for money. Tf their denositu
IN the financial centers are not suf-
ncient for their needs thev in turn ne.
Tome borrowers, putting up as secur-
ity the paper OF their customers. This
- ehe demand that calls Cor the use OF
szVV'VVu'OOO in the south and west ev-
cry ralL Its effect is not confined 10
tnls territory, however. for tile east
ern business man who goes to his
Dank Tor a loan at this season finds
tnat ne must pay higher rates fer ii
than In the spring and summer This
IS the financial side of the great erop
movement. Every year II SUBJECTS
the currency system of the United
states to serious strain and causes
money to be tight" 1t is one OF the
chief influences that inspires the de-
mand for more elastic currency. a
system that viii permit the issue of
oank notes TO expand as the demand
for them increases.
Many business men. merchants in
the cities and farmers in the rural dis
lTictS' nave turned their attention to
TINS Phase or our financial system. re-
alzing that II is of genuine practical
Importance to them. That all classes
OF business men should be compelled
TO pay excessively high rates for mon
ey because wealth bringing products
are on their way to market strikes
them as serious defect in the coun-
try's monetary system. The wealth is
Ihere In greater volume than at any
otner season Of the year, in form that
makes IL an absolutely secure founda-
ton Tor credit 1t cannot be convert
ed INTO currency for the reason that the
panKs IN this country can issue bank
notes only against government bonds.
Could such notes be issued against
certain classes Of commercial paper Il
would permit an expansion or the cur
rency at this season that would en-
able the moving of the crops to be ac-
complished with practically no finan.
cial strain. Across the border. IN
canada, where banks are allowed "a
increase their note issues In response
TO demands Of this sort, the crops
move TO market with practically no
financial disturbance at all.
In the wake Of the golden flood OF
wheat and corn and cotton follows a
mood OF golden wealth. Half a billion
dollars In cash and credits and re-
celpted bills from Europe for our food
stuffs enough to pay for one-third of
everything we buy abroad. Four hill
lon dollars to the farmers of the coun-
try Tor their work In producing the
crops. Five millions in freight earn
ings to the railroads from wheat ship
ments to the primary markets alone
Nearly $4,000, 900 in wages for harvest
ing tne wheat and picking the cotton
OF the country. Pianos and European
traps Tor the farmers wife and daugh-
ters; automobiles and college edu-
cation Tor the farmers sons. More
work In making shoes and clothes and
thousand manufactured articles for
the workmen Of the Industrial cities.
When the farer walks down the VII
Iage street with the proceeds OF his
crop In his pocket he stops in at the
local stores, pays up back bills and or
ders new supplies. Within few
weeks he has put a good part of his
receipts into circulation through var
ious channels. The money seeps back
into the local bank which soon finds
Its cash on hand rising steadily again
and once more forwards its surplus
funds to the financial centers where II
Is set to work for the manufacturer,
the builder Of railroads and developer
OF real estate and all the various en-
terprises Of industry and trade. Thus
the cycle Of prosperity repeats itself
from year to year, receiving fresh inn
petus when the broad acres of the
south and west yield up their har-
vests. certain to continue while the
crops hold good.