The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-11-17

~ q l10I VI II
board of directors Of Chase Ma
tlonal Bank, New York;
our country was patiently waiting
the completion of the legislative pro
gram for the regulation of big
business; they hoped for conservative
actlOn by Congress and believed that
PRESIDENT Wilson would secure Iva HE
and workable laws, which at the same
une would correct manifest wrongs
mere was a growing confidence that
thlS legislative program completed
business, under the impulse of un-
uSuaily large crops; business. so long
quasl-dormant, would take on new
,lle ana a period Of prosperity, and
happiness would ensue.
n involving Of the greater part of
the civilized world in the present war
mas changed conditions radically
Inc antitrust program of legislation
mas been completed, and, let us hone.
wisely, but the wal closed our
usual markets, some entirely. some
Parry n war insurance and the alb
sorptlon of vessels by the needs of
the war have increased the cost of
piaclng our goods in foreign markets.
our 100000 cotton bale" crop. in
stead OF making us rich, has become
d and unusual financing
becomes necessary to carry over the
year the unneeded surplus.
before the war was actually begun
the TWO greatest creditor nations
England and France, each declared y
moratorium; credit in each and every
form was denied to Americans: En-
rope however, continued to sell goods
uhoer pressure and at concessions to
Americans. ~
All exchanges were clos
81 ana foreigners sold securities in
the New York market as fast as tho
same could be absorbed, as a has i
1or creolt with which to export gold
Inc closing of the New York Stool
became necessary in ordar
o protect the gold holdings of the
panks and the gold holdings Of tho
ohiteo States Treasury as we'll.
Clearlng-EfOuSe Certificates
lohs as a customer of a New
1ork bdnk could deposit checks ~
MS creolt and the bank receive pold
Ioi lneSe checks from the New York
t!earlng House, there was no GOOD
Ieason why such gold should not he
.ulneu over TO such customer. The
cleaf1nS houses Of the ountry there
lore, went upon a credit basis. resort
ca 10 clearinghouse certificates ac q
means or settling balances. and tho
a customer depoSiting Checks co,,Ia
De told that the bank received on1H
creolt, not gold, at the clearing house
and, therefore, could only allow tho,
resulting balance to be checked 90
through the clearing house. This
course Of action protected the gold in
the banks and indirectly in the TDitaa
states Treasury, and enabled banks to
expand their credits.
clearinghouse certificates are good
only locally, and heretofore when re-
sorted to have produced PARALYSIS ~
exchange between different citiac
Inc emergency currency. with which
the Secretary of the Treasury ca
promptly supplied us, prevented this
lntercity congestion. as it was easily
sent by express or registered mai
from place to place, thus settling hal
ances and keeping all business all ovar
Inc country in an absolutely liouid
condition. 4oiu
1neSe two Observation-Disclosures,
leIcS and clearinghouse certificates
FURNISHED the necessary machinarr
70 work out our problems and "a >,
Us safety through the crisis.
Financing Cotton Surnlu~
cotton is the greatest confrihu..r
our international trade balance -.
Mhen our large crop became a h,raa
instead or a boon it was necessa-l .