Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1912-05-24

teh country"
That our present banking system
ifs fundamentally wrong with regard
10 the distribution OF reserves Is The
Unanimous opinion OF bankers, bust
ness men. economists and financial
experts"
Our system is nearly fifty years
! old While the business OF the eoun.
L try has grown 10 vast and wonderful
proportions and has undergone
changes remarkable alike for depart
ures from old methods and the intro
duction Of new ones. our banking sys-
TEN has stood still"
Under our system II is practi-
ically impossible 10 increase the
amount Of what We term real money
or debt discharging power. in cirru-
lation except by two methods
the importation Of gold from forelgn
countries. and the other the purchase
Of United States or other agreed
bonds 10 serve as a basis for circl.
laiion 10 be- issued by national bank
| Ia therefore obvious that in order
10 procure these bonds IL would be
necessary TOR the banks 20 purchas
same before the currency could boz
issued thrs in point OF credit not
Increasing the facilities OF the
banks"
a bale Of cotton weighing five
hundred ounds. worth fifteen cent.
per pound possesses the equivalent in
debt paying power 10 currency notes
aggregating seventy five dollars. The
only difference between the bale Of
cotton and the currency Is that the
latter Is easier to handle They both
possess an equal debt discharpina
power"
What We need is a system which
will crmit our people 10 place their
cotton or other products In posi-
ton where they can be utilized a. o
basis for the issuance OF currency 10
reasonable extent. such currency ia
be backed. In addition. by a reason
able amount of gold or other lawful
money 10 insure prompt and sure re-
demptiou What applies 10 cotton
will also apply 10 other products OF
our farms. manufactures and mines
The true debt paying power Of our
country does not depend upon Tho
actual amount Of money In circuia-
tion SO much as il does upon the
value Of our products and resource
Money Is nothing but a medium
OF exchange II is absolutely OF no
value except 10 the extent OF its pur.
chasing power n you have one hun
drcd bushels OF corn, market value
soyeniy-five cents hushel and want
g. if ! have a buggy market value
seyeuIy-five dollars and YOU want II.
We don't need any other circulatin
medium 20 make trade We each
have the purchasing power which
will serve as the medium OF exchange
or barter Should there be a diff
ference in value in the corn and the
buggy. then we would need some
thing else 10 enter into the transac-
tion either something else repre-
senting the difference IN wanna efAsfi'-
way Of product or chattel or some
thing called money" which we know
win be redeemed upon presentation
to a stated place or which will serve
as a debt discharging power"
The amount OF circulating me-
dunn required depends entirely upon
the demand of the business trans
action ~ the country for H. n can
not be rigidly fixed with satisfaction
We have this hy our own experience
Tor the past fif'v years There should
hc that element of elasticity ~ our
circulating medium which viii per
INIT " 10 reson dto the demand and
contract when there is no demand
We have approximately twenty
three thousand banking institutions
BOZ the United states Like the prov
erhial uh. each stands upon its own
bottom in times of stress They are
isolated and unrelated. and solf-n~es-
oryation demands What whom cur
rency fails 10 flow from the money