The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1915-09-12

New York and must be paid at once,
so the merchant is forced to sell the
cotton to the representative of ono
of the large cotton brokers, who
takes these same receipts and sends
them to one of the larger cities where
the government funds are undis-
turbed, and the broker gets the
money on these receipts, rs per cent
of their value.
Can you, Mr.. Editor, tell how such
circumstances can be avoided SHOW,
while l have taken the farmer, the
same thing applies to every farmer,
turpentine operator and railroad pro-
moter.
To my find there's simple remedy
for this great evil. It is simply this:
Let the federal reserve system be
extended to reach every centre OF
population of one thousand, or every
county seat. Let the system do a
regular banking business, Ioaning
money on either real or personal
| property or upon personal endorse
ment. Let there be RIO interest paid
on deposits of over $1,000. Let every
postofice be a receiving station for
deposits Let the interest rates be
fixed by law based on the character
of loans made. Now let us see the
advantage to the farmer.
He would borrow $1,000 from the
government bank, and would pay
cash for everything he bought.
When his paper was cue it will
not have been rediscounted two or
three times and thus force him to
sell his crop.
As to the railroad promoter. If
this proposition was meritorious he
could get the money and the '1ong
haul" would end.
1t seems to be the desire of Mr..
McAdoo to put this money in the
hands Of the farmer, and relieve him.
Before the days of the federal re-
| serve system the farmer was as near
the real money as he is now, and the
only way to reach the farmer is to
| put him face to face with the gov
ernment-his government, if you
| please.
Money has its greatest value only
from the government stamp upon it,
so why this middle man?
The failure of banks is fast becon-
ing one of the crying sharnes of the
L age, ard in most cases the failures
are dishonorabel rejecting upon the
integrity of the bankers.
i Some times these closings are un-
| avoidable. | know Of an instance
where there were two banks, ma
j tional and a state bank in a county.
i Both played politics hard to secure
the deposits Of the town and county
in which they were located. The
i stronger bank won, and kept up its
competitive fight on the weaker
bank. AS a result run was made
on the weaker bank. It's cash was
exhausted. 1t offered its competitor
certified Chicago exchange to get
cash to meet its depositors. The
stronger bank declined to honor same
and the weaker bank went under, al
though ii was entirely solvent, and
with its going under tied up the hard
earnings of hundreds of small de-
!. positors until it can be liouidated.
If the government had owned
these banks there would have been
no run in the first place. Now the
government has found that it can run
the mail and express to the best in
terests of the people. Then, why
can't it handle the peoples medium
Of exchange from the minis to the
Il people themselves? In this way the
i government would have clear in
sight into the many unlawful pools
and combinations that are made to
control legitimate business
i / do not favor any of the state
bank ideas or guarantees of bank
deposits, and Mississippi has a most
i admirable law, that has only recently
4 been passed, because money is the
property of the whole United States
and what we want is a banking sys-
tenn that covers every point without
conflict where Old Glory waves.
If the government was your hank-
er:
n You could always secure capital
). if your enterprise was legitimate and
your security right.
Your rate of interest would always
be the same as your brother and
fellow competitors.
But, above all things else, when
you lay down at night to sleep there
J would be no quakings for fear your
bank would break and with it ga
!, your last dollar in cash.
Mr.. Editor, the ideas suggested are
, open for criticism from am. banker
: merchant or farmer, or anyone else.
P. n. CARLISLE.
Millville, Fla. Sept. 6.