The Marietta journal and courier. (Marietta, Ga.) 1909-1918, 1914-08-07
the waters.

struggle across the waters.
Fortunately cotton is a thing that
will keep and that too without any
very great expense. There is not
much cause for worry. 1t is just
temporary furry so far as money
matters are concerned.
n
There has already been issued a
hundred million dollars of emer-
| gency currency, and four hundred
millions is still available, while Con-
gress has authorized as much more
as may be needed.
This emergency currency was au-
thorized originally under what is
| known as the Northumberland law
| but the rate of interest was so high
that the banks never used a dollar
| Of it. The interest started at five
per cent. The second month it went
up to six, the next month to seven,
and so on, increasing one per cent
month until it became ten per cent
per annum in six months. No bank
would borrow money at that rate
unless it was in the throes of dis
solution.
In June of last year money was
so scarce that many bankers were
uneasy and stocks were away down
| suggested to a member of Con-
gress whom | knew that the situa-
ton be relieved by reducing the rate
of interest on the emergency GU
rency so the banks could afford to
use it,
'H-ll, no." was his answer,
that law was passed by the Repub-
licans. Well never do anything to
perfect it."
That was a new view of states
manship for me but | let it go. In
the next paragraph | will tell you
about something that happened six
months later.
Three days before the Currency
bill was passed Senator Hoke Smith
and | were sitting in his office in
the Capitol. In the Chamber the
Senators were still wrangling over
the measure. The Republicans were
mad about the night sessions and
the expressed purpose of the Demo
Gratis to wear them out and force the
passage of the bill. There had been
run on several banks in Washing
ton and there was a row on between
the Treasury and one of the big
banks of New York. 1t was expect
ed that within thirty days serious
trouble would be precipitated.
Senator Smith was worried over
the situation. He knew that it
would take at least six months to get
the Regional Reserve banks into Cd
Grafton. He knew that in the mean
time, with the taking of 100000
600 of stock in the Regional banks.
and the transfer of reserves from
one section to another there would
be a perfect opportunity for hostile
interests to force a panic.
After a little thought he asked:
Have we in Georgia a Currency
Association organized to borrow
e m ency currency under the
Aldrich-Vreeland law"
1t happened that | had Just been
examining the Report of the Comp
troller of the Currency and stated
that there was such an association
and that there were more than TWEEN
ty in the United States.
He had me bring down from the
Document Room a copy of the law.
| still have the copy on which he
made changes reducing the rate of
interest so that the banks could uso
the money six months at a rate of
three and a half per cent per an
mum, less than is paid on savings de-
posits.
That night he proposed the amend
ment in the Democratic caucus. 1t
was adopted unanimously. The
next night it was adopted by the
Senate without dissenting vote. It
is in the law and today over a hum