The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-04-11

than any other part of tho country b.
It's revision along intelligent and pro-
g:essiTc lines. To put It conversaTiy,
the South suffers more from the cur
bcrsomr and unfair financial orftni-
cation. under which we are attempt
ing to do business to-day than amy
other considerable territory In th,
Union.
The reason for this is twofoId. Thu
south Is inndequateiy supplied with
barking capital. In financial projocts
OF size II is necessary for business mon
10 so TO New York OF to other North
crn money markets: At the same time
the South IS entering upon period
OF tremendous industrial expansion. in
which the increase. not only IN new
enterprises. but also In the volume ana
extent Of ordinary business. viii re
quIrc more flexible and reliable credit
facflitcs than now are available
1t is familiar fact In the fall sea
son when the great Southern crops lei
BY tobacco and cotton. are being moV.
cd maritetward. and when all the man
fold commercial activities arising
from this harvest movement are a.,
full tide. the South is dependent unon
banks outside IL borders This an.
plies not only to tho instruments or
credit which arc employees in this
work. hut also to tho actual currency
that Is required. which must be solp-
ped here from what arc designated as
reserve or central reserve cities. re
amount varies from year TO year. bat
in the aggregate {, runs into tho nun
dreds OF millions annually.
Nhcre does this money come FROM?
Chiefly from New York some Of i,
belongs TO tho depositors OF South sru
Dahks' u was originally sent to New
York by these banks bcc;iusc. ma, H.
Julio. a.
can nc employed at profit under tho
present system. Moro OF IL Is nancy
belonging to dcpositors OF bauks -,
->HW nork and other parts Of the com
try Which is loaned out acro "a, ,ii,
CROP moving season in order to ob,,;,,
~" nigh rates OF interest which .han
prevail. Tho point Of the mattar &c
that the South mus; have credi, an,
must have currency in order 10 move
her crops. She secures this nrcoiup,,,
dation at present by paying higher
rates than the Wall street opcrators
are willing 10 pay for it in order 20
carry stocks and bonds in their smear
iatiVc movements.
But is there any obligation ON tnc
New York banks To supply ends ia
INC south at The crop-nuvin. sc.e.,n
or al any other time? Not the slight
est These banks arc In business Tor
what ihcy can make. II spcculatin, "a
active ana call rates high In New Sor,;
me south must outbid these rates. If
money Is tight ard a panic threatens
southern bankers may he unable 10
OBTAIN 1t on any tcrrns: may be unlb,o
even To secure the return of tho funds
they have on deposit in Northern re.
serve cities In other words. the south
rs absolutely at the mercy of tho met
ropolltan banks in obtaining funds mt
any time when her business needs .iso
nhnNn ae f,,.J,,,
THIS condition she shares with cveryott-
or part OF the country outside the charm
cd circle Of Wall street. which Ia In.
only available market for unoccupled
funds under present conditions. As
Professor i. Laurence Laughlin, Of Chi
cage APPLY phrases it. there is SON
dillon OF 'fcudal Dependence" ~ our
credit system ny which the smaller
lanltine institutions mus, rely rDon
the larger ones In the big cities. Tho
citadel OF this feudalism is New YORK
as the financial capitol Of the country
This condition gives pith and color to
the charges of the existence Of Il
money trust"
Two of the strongest recommends
tons of wat is known rs the National
Reserve Association plan, providing
for cooperative action among all The
banks of the country. are. first, tina;
II provides for giving preferences 20
commercial paper arising out of trans
actions in agriculture, commerce ANA
industry as the basis of bank loans
and. second, that ii makes 1t possible
for n bank to place its funds largely
on such security by providing n
branch association, through which, I'm
der proper restrictions, the bank can
secure the rediscount of such paper,
not as favor. but os q right. The CT
feet of this twofold provision would
he TO bring about che employment Of
local funds in local business operations
more largely than ut present ana to
remove this condlctTon of feudal de-
pcndence upon the favor OF the moncy
lords OF Wall Street. These arc con
sidcrations of the utmost Importance,
and 1t therefore becomes the duty CT
every citizen, and especially OF avery
farmer and business man of the South,
to study this question and TO scrulinize
any proposed legislation carefully. to
the end that whatever plan Is finally
adOrtua shall provide for tnc nnanc,aI