The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1915-08-25
CROP MAY
Be CARRIED OVER
CONTROLLER OF CURRENCY IS
SUES ENCOURAGING STATE
MENT-BANKING SYSTEM
STRONG.

w oSIllIlS WIN E
of the Currency William an
nounced today that the present un-
employed loaning capacity of nation
banks and reserve banks was sufici-
ent to finance at market value the
entire cotton crop and half, if not all,
of the tobacco and wheat crops, and
to justify an expansion of credit Of
$4,000, 600, 900 or $4,000, 600, 900.
A statement by the comptroller re-
ferred to the prospect for unusual
demands for funds, particularly if
cotton should be declared contra
band, and ne declared that never be-
fore had the banks been strong and
thoroughly prepared to handle any
problem.
Just before the statement was is
sued the British embassy authorized
the announcement that the allies had
agreed on the principle that cotton
was eontraband.
Special requirements, which the
banks may have to meet in the near
future, were summarized by Mr.. Will
liams as follows: g..
What Banks Must Meet.
"First: The yearly recurring de-
mand for funds with which to move
the crops, which this year, except as
to cotton, are unusually large and
commanding full prices.
Second: The unusual demand
which may arise to enable cotton
growers to meet any congestion in
the movement or marketing Of the
crop, in the event that cotton should
be declared contraband.
"Third: Demands which r likely
to be made on national banks, both
directly and indirectly, in connection
with the extension of credit to for
eign purchasers Of supplies of all
kinds, and to pay for the American
securities which may be returned to.
us by foreign creditors"
Concluding, the statement said:
!. National Bank Strong.
"The actual figures show that the
present condition Of the national
banks of this country have never be-
fore been so strong and so thorough
ly prepared to grapple with and han
die successfully any problem, how
ever large, which may be presented
to them, as they r today. These
figures show that the national banks
Of this country and the twelve fed
eral reserve banks, exclusive of state
banks and trust companies, have at
this time an unemployed loaning ca
sufficient to enable them, if
need be, to carry for our own people
at market value, the entire cotton
CROP. and half, if not the
whole, of the wheat crop and tobac-
co crop, which it is not, of course,
that they will be asked
do, and also finance, until the pur-
chasers can pay us in gold or it's
equivalent, $1,000, 900, 900 or so of
exports of foodstuffs or manufacture
ed products to be shipped to the rest
of the world.
1T is far better for the banks to
employ their surplus funds in max
ing loans on staple commodities
where they can relieve congestion or
promote legitimate commercial trans
actions rather than permit these
funds to be used for the imitation of
the stock markets, where speculation
securities has already reached al
point which invites caution.
New Banking System Sound.
The soundness of our new bank
ing system and it's ability to meet
successfully even the most trying
emergencies have been demonstrated.
We also have confidence that it will
be equally able to cope with and con-
troll imitation growing out of pros
1t behooves the national
banks and the department of the
government charged with their super
vision to exercise, under present cir
cumstances, the utmost vigilance and
wholesome restraint, lest over con
hdence and unwise expansion or
speculation may check the prosperity
Which now seems SC likely to in
crease and endure"