Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-07-01
A GooD-LooKING BILL
Provides Elasticity for the Currency in
Practical Way.

'. ~ o.
a Practical Way.
In the New York Times Of yester-
day we find the full text Of the pro-
posed administration currency and
banking bill. Necessarily, 1t Is long
and complicated document. 1t changes
our entire system of finance. The gist
of it Is that each region, or section of
the country will supply its own needs
for money, the faith and credit of the
government and a SO per cent basis of
gold reserve being behind every dollar
issued. AS we understand 1t, say,
Richmond would be the reserve city
for Virginia, North Carolina and South
Carolina, perhaps, also, for West Vtr-
ginia. The plan, as outlined, provides
for twelve Of these reserve cities, dis
tributed through the country as near
ly equally as possible according to the
peculiarities Of the territory. Virginia
and her adjoining states being cot
ton, grain, fruit, stock, coal, iron and
truck producers, need supplies or
money at different seasons OF the
year. A bank in Roanoke, Tazewell,
Chase City, Greensboro, North Caro-
/
Carolina, or in any Of the factory
districts, needing money to move the
local crop or product, could take It's
collateral to Richmond and, by en-
dorsing it and having 1t approved by
the board of managers, get the cur
rency 1t required; and as its own ad-
vances were repaid, would repay Its
borrowings to the reserve city and so
make 1t impossible for any solvent
bank to be pinched for currency or
troubled by run" Its securities can
be turned into money practically In
few hours. Also, we believe the
new plan gives national banks the
right to lend money on real estate
mortgages.
1t has happened sometimes that a
practically well managed bank hiss
had its money lent out to good, safe
people on 80, 60 and 80 days notes
we'll secured and a sudden scare or de-
~ md for cash has can embarrass-
ment and the closing Of doors, de-
mand for quick settlement or inability
to accommodate people entitled to a
line Of credit and needing 1t to carry
them through. Now II a bank can
call on q reserve city and get cash
for its notes, mortgages, stocks and
bonds, 1t can take care Of Its custom
ers and pay it's depositors over the
counter in response to demands.
This system ought to make panics
and squeezes impossible. On the face
of it, at least, 1t will make money
worth and earn according to the
legitimate need for 1t In the ordinary
and orderly course Of business. The
tendency Of it will be to allow and
enable each part of the country to
take care of itself and provide for Its
own needs and each group Of banks
to adjust itself to its requirements and
to trade and currency financial power
Is avoided. We will not have all
our eggs in one basket and that basket
the crazy. tossing, frequently mys-
terious Wall street receptacle.
This new bill provides stability and
security against any disturbance, tariff
changes may cause or may be made
the pretext Of causing. 1t will balk
and prevent money famine and bust
ness distress. It Is hard to under
stand why any member Of the con-
gress should oppose 1t, except those
who have hearts fatally bent on mis-
chief and whose horrid JOY Is to tear
their country and their kind destroy.
Roanoke Times.