The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-11-29

New York. Nov. 2s.--That the Wall
Street Of the future will be something
iiffering considerably from that of the
present day. so far as its activities as
he money center Of the country are
concerned, Is a fact which is becoming
more and more apparent here, as a
result fthe awakening OF business
interests all over the country to the
need Of monetary reform. The Amer
lean business man is generally re-
garded as the shrewdest and most up
10 date in the world; yet for more
than twelve decades he has been con-
tent to look upon the one business on
which all others rest that is our bank
ing system with its vital function OF
preserving credit-as one to be con-
sidered only by experts and the great
aloneyed powers. The belief has been
strongly fostered that currency prob
ems are too complicated and too del
cately adjusted to be solved by the
average business man and Wall Street
has retained seren control. UP to
very recent period there has been as
little Of a general understanding Of
Iuch terms as elastic currency as there
vas in 1892 of the famous shibboleth
'16 to l." when. it is no exaggeration
70 say, there were many persons who
actually believed that the establish
ment Of this ratio would give them
I16 for each 81 they then possessed.
At last, however, the money lords
Of Wall Street are face to face with
the realization that their power is to
De taken away from them. The
awakening fthe business men gener-
ally to the truth of the statement re-
Gently made that ours is the worst
banking system in the world means
he downfall of the Wall Street money
dynasty. And no one realizes this
better than Wall Street, itself. From
business men, manufacturers. farmers
in all parts of the country has arisen
IN overwhelming demand for currency
reform. Perhaps this is due to the
money panic Of 1907 which would have
been impossible in England, France
or Germany, or perhaps to the grow
ing realization that those countries.
because of the existence of banking
systems far superior to those of this
country are free from panics. Or per-
haps 1t is due to an ever growing re-
alization of the inherent weaknesses
Of our system. Whatever the cause,
however, the demand is loud for re-
form which shall give to this country
through the medium OF a central re-
serve association that greatest guar
antee of credit and financial security
that is elastic currency.
AS things stand at present our cur
rency system is the most inelastic in
the world-which is to say that II is
least adapted to the fuctuating needs
OF business. A glance at a chart of
our national bank note circulation
shows that it is indicated by a steady
rising line with no fiuctuation. The
amount does not rise and fall with the
needs Of business. The line showing
the circulation in Canada, however
resembles a series OF elongated saw
teeth, one for each year with the apex
always occurring in November. That
is the time when the crops are being
harvested and moved and when money
Is needed for this purpose To meet
this need Canada's elastic currency
proves as adequate as does our in
elastic currency prove inadequate.
Elastic currency in its simplest
terms may be defined as the system
which furnishes money-or rather
credit-to meet the fiuctuating needs
of the business world. The fact that
rates running as high as so and even
100 per cent could not obtain money
in the panic Of 1907 shows how incl
astic our present system is. AS a hat
ter Of fact the existing banking sys-
tenn in this country is admirably
constructed to furnish an abundance
of currency or credit when there is no
particular demand for it and to make