Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-08-26
Friday, August 26, 1921.

on June 80. 1920 the total loans and
discounts in the national banks in the
United States stood at s12,396 SOC, 900
BY April 2S, 1921. they had been re-
StriCted 10 $11, ,367,074,000, a loss in
credit machinery Of the Federal Re
serve banking system Of 1,029,S26.OOO,
in the short period of ten months. The
total deposits in national banks on
June 80, 1920. were SIT, 1856, ,421 900, and
by April 30, 1921, these had been re-
duced to $14.S51. .959, 900, loss in de-
posits within that period of S2,3O3,-
$4,000. During the same time the cur
rency Of the nation was contracted
$460 100000, which makes a grand total
dehatiOn in the financial resources of
the nation of S3,733, ,41S,0O0, or approx
mately $37 per capita.
The Comptroller of the Currency
stated on August . that the Federal
Reserve banks could now issue ST.
G92. 100000 of additional Federal Re
serve notcs, or grant $3,O76,S69,OOO OF
additional deposit credits, and still
maintain legal gold reserve basis Of
40 per cent These figures from the
comptroller's official office prove that
while the per capita circulation based
upon the old gold reserve was de-
creased $4GO,OOO,000 in the past twelve
months, the gold reserve actually in
creased $5O2. 2.472.0O0.
The per capita circulation, as ~
startlingly Illustrated above, does not
mean the actual money in circulation,
as a great mount of said per capita
circulation may be locked up and
boarded by those who are assisting in
the dchatiOn policy. However, 1t Is
amazing to realize that the fearful
contraction Of per capita circulation in
NF.sIIs .afl In
other leading financial countries is as
follows:
United States:
Per capita circulation June 30, 1914,
$3435: June 30. 1921. $53.42: showing
IN increase Of $l9.07 per capita circu-
lation.
Great Britain:
Per capita circulation June 30. 1914,
Sl9.4G; July 6. 1921. $45.j3; showing
an increase Of $2G.Ol per capita circu-
latiOn.
France:
Per capita circulation June 80 1914,
$Gl.17; June 30, 1921, $1S5.l9; showing
an increase OF $l24.02 per capita cir
culatiun.
Germany:
Ter capita circulation June 30, l9l l.,
5000; July T, 1921, $36SG2; SHOWING
an increase Of $34S.59 Per capita cir
culatiOn.
Italy:
Per capita circulation June 30, 1914,
Steps; May 81, 1921. $lOG.OS; showing
an increase of $9O.SS per capita cir
Culation.
This comparison cannot be brushed
aside with the statement that these
countries have an inflated currency.
Making all allowances for the imitation
this fails To remove the fact of the
startling restriction in America. The
increased per capita circulation in the
United States is not only entirely on,
of line in this proportion with the in
creased per capita circulation shown
in the above countries, but in addition
10 this il fails TO show the increased
per capita circulation necessarily
based upon the enormous cost of the
World war To America. We largely
financed the World war, necessitating
imitation for years, instead of dPilatiOn,
as has been so severely in force dur
ing the past year. and has brought
wreck and ruin TO The agriculture and
the commerce of this nation.
While the figures show an apparent
iHCr"HS" in TIA" per capita circulation
in the United states of Sl9.O7 over th'
circulation of 1919. it docs not mean
that this amount is in actual CiYcula-
ton. AS Il matter of fact GCnatiOn in
currency, contraction in credit re-
sources and loss in deposits during the
IctSt twelve months amounted To $31
per capita, which makes the available
financial resources of the people at
this time less than they were in 1911
Suggested Legislation to Bring Per-
manent Relief
Providing for the enlargement Of
the Federal Reserve board. 50 as 20
make it more largely representative of
business ana commerce in all branch
CS.
md To prescribe the method to lc
used when thc board undertakes to
change IL" rat" of discount or the con
traction of The currency, either ul
which changes the status Of every
debt and every Investment in the
country.
Long wears of experience in the
most advanced agricultural countries;
Of Europe have clearly demonstrated
that the entire system OF commercial
banking fails to meet I'll" requirement.
Ur the farmers. Commercial banking
las been built up on short time loans
"nd quick turn-ovcrS. The TURNER'S
can only make n turnover uf their
Should be divorced from commercial
banking methods, and should run for
:iX months To one year in the cotton
belt and from six months to three
wears in the grain ami livcStUrE 500
tiOnE. The interest rate should j."
mui' a.s low as possible
The farmers require $ncCia! lC"iSla-
ti"n in regard to these matters. not
because Of any need of ratcrnaIi;m.
cation. Th" experience of the last
twelve months demonstrates quite
clearly that laws should hc inaugural
cd which would absolutely prohibit
thos" i'm control of the Federal Re-
sciN" banking system from puttin% in
to effect and force any kind OF policy
ur alt;iirial Gcflation @llcCIin% Tin"
llar>'' values oi staple farm pruductS
uctw""n 'h" time Of planting and the
marketing Cr such crops.
There should also be legal pruvi-
siunS m%do regarding more general
publicity oi any decided change IN tho
policy of the Federal Reserve board
with reference To restriction uI credits,
contraction OF currency. o" the raising
Of IrdierOmt interest rates. The fl
nauciai machinery lug American farm
,rs aS applied 10y the Federal Reserve
Banking system is inadequate To meet
their needs.
believe in the financial principi,::
underlying the Federal Reserve" Sys.
tenn ! hclicv" that as originally pro-