The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-08-27
THE GOOD 1T WOULD DO!

Comptroller of the Currency Viii
liams makes the sound suggestion b-a@
the banks would do far greater
work for the country by employing
their surplus funds in making loans
on staple commodities, meaning cot
ton. wheat and corn, where such loans
would relieve congestion and pro-
mote legitimate commercial transac-
tions, than to permit these funds to
be used to initiate stock market specu-
lation. The tremendous power for
good these banks could exert is mani
fest in a statement made by the
comptroller as to the manner IN
which they are fixed" He says The
national banks Of the country and tie
twelve federal reserve banks, exclusive
of the State banks and trust compa-
MES, '"have at this time sufficient to en-
able them, if need be, to carry for our
own people at market value the entire
crop and half if not the w-ole OF the
wheat and tobacco crop, which it is
not of course conceivable that they will
be asked to do, and also finance until
the purchasers can pay in gold or its
equivalent 0OO,0O0,0O0 or so of ex-
ports of foodstuffs or manufactured
products to be shipped to the rest OF
the world" If this country has any
trouble at all, it is not a lack of money.
1t is the money that is tied up. The
national banks nold a reserve Of $319,-
100000, the record of all history, while
the national and reserve banks hold
$1,000, 900, 900 in specie.-Charlotte OBJ
server.
1t would seem from this statement
from tie Observer, and also from the
statement of Mr.. Williams, which The
Herald and News has netofore printed,
that the matter of financing the crop
in such a manner as not to cause the
cotton producer loss is in the hands
of the banks, and if b-ey will, the
money is available for the financing
of the crop to nelp the producer. Tha:
is what we need in this neck of the
woods. If it is only to help the manu-
facturer, and do not desire to see
him suffer, but if the money is not sc
used as to help the man who produces
the crop to save him from loss the
whole business of the country is going
to suffer, and with it the manufactur-
ing interests as we'll 1t makes little
difference to the manufacturer what
the price is so long as the price OF
cloth is keeping up with tie price of
the raw material, and it usually does.
1t is not a lack of money, but the
distribution of it on a sound basis so
that the producer may be able to hold
his cotton until the price is such that
he can realize a living and small
profit for his labor. Cotton is a good
basis of credit and if we place the pro-
ducer in such condition that ne can
hold his cotton for a fair and living
price the contraband order of England
will not hurt the South. The world
must have the cotton and we had bet
ter bold this crop for a price equal
ct least to the cost of production and
raise none at all another year, rather
than have it SOLD for less than cost
and every one go broke.
We believe that the banks are going
to take care of the situation this year
and that business will soon be good.
This war can not last always and even !
if it is to keep up those vito are en-
gased in it must have our cotton to
make combustibles to shoot their guns
and to clothe the soldiers.
"AUTOMOBILE ROAD"