Bisbee daily review., 1913-06-21
EMERGENCY cuRReNcY.

The reassuring value of Secretary McAdoo's announcement that curren- cy will be freely issued under the AId- rich-Vreeland act should the emcr- gency arise is very great. IL removes from mems minds definitely the fear that the demands of the cropmoving season this fall may produce a cur Tency famine and money rates hlgn enougb to cause business disturbance. It was well worth while to take away trvm- the pessimists the basis of dire predictions on that score It is not ct that there is any present need for the issue of emergency currency. The money rate. though not low and rather firmly maintained, is not high enough to yield profit on issues under the Aldrich-Vreeland act, taxed as they would be at per cent for the first month. increasing at the rate of l per cent, for each month thereafter. But the bankers know, and, what IS more important. the country at large knows, that there will be no financial trouble this fall through lack of the medium of exchange.
 It is not. indeed, the lack Of cur rency either present or prospective that has caused uneasiness or appre- hension. Of the circulating medium we have an abundance, 8 maximum. It is accommodating in the banks in the form of surplus reserves Need is rather for reserve money, but above all, as Mir Schin pointed out the other day. of more ample supply oi accumulated capital. The enormous demand upon capital for public uses. it's destruction in the Balkan war and the hesitsting attitude of invest ors, amounting to actual timidity, have made it difficult for borrowers, notably for corporations and even Ter states and cities. to secure needed funds. In the present condition of the European money market we can hope for no aid from that quarter. That vas one Of the reasons no doubt, which prompted Mir Mchdoo to issue Lis statement.
 We should not add to our stock of capital, but as temporary expedient. to which. in fact, we may not have Ito resort, it would serve to avert or tldef over a period of stress unTiI investment conditions become easter .thr9gEa the operation of natural 'causes. The country cannot afford to let the reasonable, much less the urgent, demands of railroad and eth, CT corporations go unsatisied. Dis tuTbing incidents of that nature by checking the activity Of business and industry would put off the coming of the time when fresh accumulations of capital and restore confidence will bring the natural relief
 We're the bankers of the countr, less experienced and wise. there would be some fear that tbe provis ions of the Aldrich-vreeIand act might be avaiIed of too freely with result ing imitation that would bring on ] craze for speculative ventures. Thai would be worse ever than currency famine. But the conservatism of th' country's bankers win be safeguar, against those evils. The banks mIgh at any time exercise their right t' take out and issue thls form of cur rency. but in present conditions the! would have been little likely to eN ercise the privilege. Secretary Mo Adoo.s statement, has. called the al
 a
 tsnti6n .Ot ike Shoie4country to stn' means of relief at hand. should nee arise. It was justified by the reassur ing effect the notice has had in fnaH cial communities and upon the couH try at large