mmoutb
Journal.
lLATTSMOUTII, NE 151? ASK A, THURSDAY, NO VEM I5E1? 7, 1907
.VHMIJUH -:
VOLUMK XX VI I
platte
CREDIT (KilHiIKieV
So Says Chairman Fowler, of the House Com
miiiee, Who Declares It Will Bring
Permanent Relief.
HIS IDEA MAY BE
The Glearing-House Certificates Must Be Used
Temporarily, He Asserts Very Explicitly.
A special from New York, underrate
of November 4, in speaking of the fi
nancial situation, says: That perman
ent relief from the present monetary
stringency can only he had through a
system of credit currency adequate to
meet the requirements of trade and re
deemable in gold coin, was the opinion
expressed today by Representative
Charles Fowler, of New Jersey, chair
man of the Hanking and Currency Com
mittee, which will, at the coming ses
sion of Congress, endeavor to have a
law passed providing for credit currency
issued by the national banks. Until
such permanent relief is made possible
by legislative enactment. Mr. Fowler
asserted, the situation must be met by
the issuance of clearing-house certifi
cates, cashier's checks, and due bills of
business houses and manufacturers.
"The underlying business conditions. "
he said to the Associated 1'ress today,
"are essentially sound as evidenced by
the increased earnings of railroads and
the products this year are $50ooou,000
mo;e than last year (which was the
highest year in our histo;-y ) . and are
bringing t our people about 7.' (). oon.
OtMi. but public confidence has been
greatly shaken and credit seriously af
fee ted, therefore, every patriotic citi
zen, from the President down, should
do all in his power to restore that con
fidence which i essential to national
prosperity.
Cause cf Stringency.
"The cause of the currency stringency
is that there is scattered broadcast
throughout the country, at the mints,
in the wheat, corn and cotton fields, in
the pockets of the people, or locked up.
about $l.:ltm.ooo.o0 of the reserve
money of the United States, most of
which, under a proper condition, would
be in the banks serving as reserve.
Temporary relief will be through the
forced use of current credit in the form
of clearing-house certificates, cashier's
checks and due bills of business houses
and manufacturers during the ninety
days. The permanent cure must come
through a system of credit currency ex
panding and contracting with the or
dinary demands of the smaller trade,
precisely as checks and drafts do in the
broader field of commerce.
"We have not proceeded far enough
into the present financial crisis to get a
pretty clear perspective of the real sit
uation. "First, the condition is now general,
reaching every nook and corner of the
country.
"Second, if the gold certificates, the
United States notes and silver certifi
cates or the reserve money which the
banks of the country have sent in agri
cultural districts of all sections to settle
up the year's business, I say, if these
reserves now scattered broadcast over
the land were in the banks, where they
properly belong, there would have been
no money panic this fall.
"The proof of this assertion is con
clusive. During the past four months
there has been sent from the banks in
to the country districts approximately
$300. 010,000 of currency. Of this amount.
$250,000,000 approximately was reserve
money, which, if it were now in the
banks, would serve as a basis of more
than $1,250,000,000 credits, or loans, and
the present crisis would have been
averted. This result could have been
accomplished without increasing our
bank reserves to the extent of a single
dollar, without increasing the liabilities
of the banks of the country to the ex
tent of one cent.
Challenges Contradiction.
"I challenge any man to controvert
this statement, and submit the follow
ing a3 absolutely conclusive proof of the
assertion:
"If the banks of the country in which
the $250,000,000 had been deposited, had
ADLYH
EEDED
JUST THE THING
been authorized, as they should have
been, to create bank-note credits, as
bank-book credits, and they had pro
ceeded to convert this $250,000,000 of
bank-book credit, the banks would not
have been affected in any degree or in
any way whatever, and the whole coun
try would have been amply supplied
with currency, with which to transact
all the fall business.
"How could this have been done?
Simply by authorizing each bank to is
sue cashier's checks, payable to bearer,
which is a current credit, that is, credit
that passes by mere delivery, requiring
no indorsement. By this process the
$250,000,000 of bank-book credits would
have been converted into bank-note
credits, and as the reserves required for
both forms of credits should be the
same, there could have been no change
whatever in the situation. The bank
debt is the same, the amount of the re
serve is the same. It has been only a
matter of book-keeping.
"An issue of credit currency adequate
to meet the requirements of trade and
currency redeemed in cold coin is a
principle followed by every civilized
country in the world except our own.
World's Banking Power
"Mark this: The banking power of
the United States in 1S00 was about S5,
im 10, 000, Ouo and now exceeds $1(5, 0(h),
0f 10.0(h), or equal to the entire banking
power of the wo.-id in 181)0, which Mul
hall placed at f :5,'.)S5,000,OOO. Today
the banking innverof the entire world,
outside of the United States is only
$2 1,952, 000,000, and of this amount 20
per cent, or more than $4.000,000, 000, is
in cashier's checks, or current credits.
That is, credit currency, and, yet, while
the United States has three-sevenths of
the banking power of the entire world,
it has not one single dollar of current
bank credit, although the four-sevenths
of the world's banking power has the
advantage of $4,000,000,000 current
credits, or credit currency.
"On the same basis, we are entitled
to have $3, 000, 000, 000 of currency credit
or credit currency.
"If this principle were broadly adopt
ed in this country, as it should be, our
bank reserve might be increased from
an average of 9.92 per cent to about 20
per cent and our banking liabilities re
main practically the same.
"Can anyone give a single reason why
we should use a check book for credits
to order and not use a current credit of
the same bank upon which we draw our
checks? Is not the cashier's check just
as good as our check upon the same
bank indeed, far better when pro
tected, as it should be, by a guarantee
fund deposited with the United States
Government many times more than
ample to insure its redemption in gold
coin?
Increase of Reserve.
"If the banking institutions of the
country could exchange $1,000,000,000
of cashier's check for $1,000,000,000 of
j reserve money, now floating around in
j the mines, wheat, corn and cot ten fields,
and this $1,000,000,000 were added to
the $1,000,000,000 in the banks of July 1,
190 1, our bank liabilities would be in
creased about 8 per cent, while our re
serve would be increased 100 per cent;
it would be 20 per cent, and this end
alone is sufficient to justify the adop
tion of the principal of current credits
in this country.
"Scotland has a credit currency, is
sued by the banks, that expands and
contracts twice a year at the rate of
$1.22 per capita, or $5,500,000.
"The same ratio would give the Unit
ed States about $100,000,000 of credit
currency, but we have not one cent of
credit currency, though we need it more
than any other country in the world.
"France has a credit currency, issued
by the Hank of France, which is con
stantly expanding ami contracting
throughout the year at the rate of $1.73
per capita, or $w7,l00.000. ' The same
rating would give the United States
$150,000,000 of credit currency.
. "Canada has a credit currency, issued
by the banks, that expands and con
tracts at the rate of $3.29 per capita
every fall, or $25,000,000. The same
ratio would give the United States
$20,000,000 of credit currency. Hut we
have none."
Winter Treatment cf Peach Trees.
Recently the editor of the Signal
called on an old gentleman at Moline,
111., and found him enjoying fresh
peaches picked from the trees in his
little garden while the trees of his
neighbors were destitute of fruit. The
very late freezes caught the fruit trees
in that section just as they did the Ne
braska trees, the late frost being es
pecially disastrous to the peach buds.
We inquired of the old gentleman
how it came that he had peaches this
year and he gave this simple method of
winter treatment, and presumably it
will apply in Nebraska to almost 'any
sort of fruit tree: Leave the ground at
the foot of the tree bare through the
severest part of the winter and until
the ground is frozen as deep as it will
freeze. Then cover the ground around
the trees with some sort of mulch,
being careful not to cover so deeply
that it will heat. The depth may be five
or six inches if the measure is not too
rich. A heavy coat of leaves or straw
will do as well. The idea is to keep the
ground around the trees frozen as long
as possible and thus retard the swelling
of the buds in the spring until no more
frosts can come. The old gentleman
said he had not missed raising peaches
on his trees in fifteen years, although
the crop is light some years of course.
Geneva, Neb., Signal.
BRYAN TALKS
OF THE PANIC
Not a Serious Affair and Mot o? Lcng
Duration.
W. J. Bryan was in Omaha a few
hours Friday on his way to Wayne,
where he made a political speech last
evening. Mr. Bryan in an interview
published in the World-Herald said:
"I do not look for any prolonged
trouble in the business world. Condi
tions which made a panic and depres
sion in 1893, are entirely different now.
Then prices were falling because of a
restricted money supply. Now we are
in the midst of a tremendous gold pro
duction which gives an adundant money
supply and maintains prices so that
business is brisk."
"Then you do not think the present
bank trouble shows the need of an
emergency or asset currency?"
"Not by any means. On the other
hand I .think it presents a stixmg argu
ment against an asset currency. Sup
pose, for instance, we had been using
asset currency during the past year
and in addition to the present trouble
the people had distrust about the money.
That would make matters so much the
worse. As it is now there is no doubt
about the quality of our money. ' '
"But it argued by the advocates of
asset currency that the panic would not
have occurred if the bankers had been
able to expand the money supply by
using asset currency."
"That is not true. The panic was
due to the fact that the New York
banks not only loaned all their own
money, but a lot of money belonging to
the rest of the country out to specula
tors with Wall street stocks as security.
When the stocks went down the secur
ity became impaired. The New York
bankers got frightened and so did a lot
of the depositors. That started bank
runs, and the New York bankers, find
ing they could not collect their loans
fast enough to pay their depositors,
stopped paying them and refused even
to allow the banks of Chicago, Omaha,
and other cities to draw out the balan
ces. With vast'sums of money tied up
in New York the banks of the country
followed the example of New York and
locked up their money, refusing to pay
to country banks."
Expects to Husk Corn
John Clarence Aldridge, the man who
is apprehended the other day because
he was deemed of unsound mind, depart
ed for the fair and furtile state of Iowa,
this morning, assisted by the county to
the extent of a ticket, and will engage
in securing the abundant crop of corn
which our sister state has raised this
summer.
Itch cured in 30 minutes by Wool
ford's Sanitary Lotion. Never fails.
Sold ty Gering & Co., druggists.
SUPPORT OF SOL
DIERS' HOMES
General Government Pays
More Than Half the Run
ning Expenses
The Lincoln Journal says: "Gover
nor Sheldon has received $8,575 from
the government, being the quarterly
payment for the support of soldiers and
sailors in state homes. It is for the'
quarter ending September 30, and is at
the rate of $100 a year for each soldier
in the state homes. There were in Jhe
Grand Island home for the quarter 239
members, and the government payment
for the quarter is $5,975. In the Mil
ford home there were 104 members,
the payment being $2,600. The govern
ment makes this donation for every
member of state homes throughout the
country and has inspectors visit the
homes for the purpose of ascertaining
whether the membership roll is correct.
Some fault is found by inspectors be
cause members of the home are away
during long periods on furloughs. The
appropriatiation from the government
goes into the general fund of the state,
but as the homes are supported by ap
propriations from the general fund, the
money may be said to go direct to the
homes. . If the number of members dur
ing the last quarter was the same dur
ing an entire year, the state of Ne
braska would receiye an annual ap
propriation of $34,300 for the support of
its two soldiers' and sailors' home.
The average per capita cost of main
taining members of homes in the various
states last year was $209. The cost in
Nebraska is about $180 per capita.
Thus the government pays more than
half the cost of maintaining the mem
bers in this state." If this.be the case,
why is it that state officials want to tax
the inmates of these homes a per cent
of their pensions'.' Every old soldier in
Nebraska should enter a protest against
such a procedure by voting out of office
the set of officials who instigated such
action. The general government never
intended that such a tax should be
placed upon the old veterans who fought
the battles that these office-holders
might live to enjoy the comforts of life
under the stars and stripes.
I
A Former Citizen Speaks.
The Journal received this week the
following letter from our old friend,
J. M. Kiser, formerly of Mynard, but
; living in sontheastern Missouri, to which
I point he removed nearly four years
j since. We publish the following letter
j from Mr. Kiser, which is a sample of
the many letters we receive daily from
those who have removed from Cass
county to other points, and desire the
news from their old home:
Success, Mo., Nov. 1, 1907.
Dear old Journal:
I have been parted from your com
pany now nearly four years. During
all the years of our separation you have
never been absent from my memory,
and at times it seemed life was unen
durable without thee. My cup, bitterly
seasoned with life's disappointments
has sometimes nearly slopped over, yet
ever recollections of thy goodness hov
ered o'er me! As a portion of thy
value I herewith donate $1.00, in con
sideration thou wilt weekly (not weakly)
visit us, as of yore, for one year.
J. M. Kiser.
Select Your Seed Corn.
The Department of Agricultural Ex
tension urges the necessity of securing
seed corn now, A circular letter sent
out says: "If every ear of com that is
to be used for seed corn next year could
be harvested this fall not later than
October 5th and hung up where it would
dry out thoroughly before the freezing
nights of October, November and De
cember have weakened or killed it, it
would add millions of dollars to the
wealth of this country. Don't wait
until the time of husking to save the
occasional good ear. Much of the seed
planted in the spring is bad, not because
it was not cared for during the winter,
but because it was selected when the
corn was husked and had already been
killed or weakened by freezing. Twelve
or fifteen ears will plant an acre. Can
we afford to leave these ears in the
field until we husk the corn during No
vember and risk having them killed or
weakened by freezing?
That Night School.
All who are interested in the establish
ing of a night school either in the capa
city of one of the instructors or those
who wish to attend or who have those
whom they wish to become students,
are requested to meet at the office of
the county superintendent on next
Thursday evening, at 7:30, when definite
action regarding the opening of the
school, the tuition, and all matters per
taining to the school will be discussed j
and disposed of.
Bums
OF
DAY
The Democratic Candidates for County Clerk,
Treasurer, Assessor, County Superinten
dent and Commissioner Eiecied.
JUDGE H. D. TRAVIS ELEGTEI
He
Carries Both Otoe and Cass Counties by
Majorities That Speak in No Uncertain
Tone of the Faith Reposed in dim.
Tuesday was an ideal day, and not
withstanding the fine weather, a very
fair vote was polled throughout the en
tire county, and from the returns, which
are very accurate, the democrats get
Judge Travis for district judge; W. E.
Rosencrans for county clerk, Frank E. j
Schlater for treasurer, H. M. Soennich
sen for assessor, Miss Mary Foster
county superintendent of schools and
Charles R. Jordan county commissioner.
There was no opposition to A. J. Bee
son, republican candidate for county years ago, and it is due to this fact that
judge, and E. E. Hilton for surveyor, he received such an overwhelming rna
The majorities on the democratic ticket jority over A. J. Box, the democratic
range from 250 to the 1,000 mark, the , candidate. We believe Mr. Box to be
latter majority being that of W. E. , equally as good a man as M r. (Quinton,
Rosencrans over F. A. Bricka for coun- and while we thought he i-ho;;ld have
ty clerk. The majority of C. D. Quin- been elected, we fed th:t two many
tin, republican candidate for sheriff, is j people believe in giving a man the see
nearly 900, while that of James M. Rol - ; ond term, in c ase he gives gene ral sat
ertson, for clerk of the district court, isfaction in the first, that Mr. Box's
is something over 200. election was looked upon as an impossi-
The election of Judge Travis to the ' bility from the start. The nc-Nt best
position of district judge, and especially thing for the Journal V, cio is to extend
his majority in Otoe county, is a just congratulations to Sheriff Quinton and
! rebuke to those villifiers of his charac -
j ter in Nebraska City, who were ready
j at all hours, day or night, to deride him
in order to make a vote for their pet returns, seems to have been re-elected
candidate, Jesse L. ' Root, who now to the offic e of the clerk of the district
realizesthe fact that his friends in that court, by a majority of 211. This is not
county done him more harm than good, near as big a majority as Jim expected.
In the election of Charles R. Jordan, but it is enough to continue hiin in the
as commissioner for the Third district, court house for another term of four
is a victory for right and justice. And years. The Journal believes that !. !'.
the returns demonstrate to a dead moral Metzger should have been elected for
C2rta:nty that in the future no two com- many reasons, which is not necessary
missioners will again come from one sec- to mention here. Mr. Metzger iic'd'
tion, in an effort to get more than is not feel discouraged over his defeat, he
coming to coming to them to the detri- cause many republicans are disposed to
ment of a section without a member on believe that had he been better ac-
the board.
The election of W. E. Rosencrans to
the office of county clerk by such a de
cisive majority, signifies that "Rosey"
has done his duty well and that thetax-
payers are well satisfied with his ac- predict that notwithstanding his defeat
ministration. His majority is unpre- in his first race for office against an old
cedented in the history of Cass county race horse, and that he will some clay
for a candidate for that office. hold an office in the court house.
The friends of H. M. Soennichsen are The success of the democratic candi
highly gratified with the returns, which ! dates cannot be claimed as a democratic
show that he is to be our next assessor victory, because much credit is due the
by over 200 majority. The vote he re- ' independent voting republicans of the
ceived in the city of Plattsmouth fully ' county for their election, and lest the
demonstrates the high esteem in which ! Journal forgets, on behalf of the chair
he is held by the citizens of all parties. , man of the democrats county central
That he will prove faithful to the trust , committee, Henry It. Gering, W. C.
reposed in him, no one has any doubt. j Ramsey, secretary, and everyone of
The voters of Cass county done an ex- j the successful candidates and defeated
cellent day's works when they elected ones as well, we desire to return thanks
Frank E. Schlater to the office of coun- j to those republicans who believe in ef
ty treasurer. The Journal was very : ficiency above party as qualifications
well satisfied before the election, that j for office.
if the tax-payers knew the worth of ;
such a gentleman in the treasurer's of- ; Tom Johnson Victorious,
fice the most important office in the: Cleveland, O., Nov. 5 Mayor Tom L.
in the county, that Frank would be j Johnson was today elected for the
elected by a good majority. His elec- j fourth time as mayor of Cleveland, in a
tion is highly appreciated by, not only I hard fought battle in which the repub
his many friends, but by all who know j i,can ticket was headed by Congressman
that the good condition of that office j Theodore E. Burton, chairman of the
will continue. : house committee on rivers and harbors.
The election of Miss Mary E. Foster ( At midnight Chairman Baker of the re
to the office of county superintendent of j publican committee conceded th elec
schools by such a large majority over j tjon Gf Johnson by 5,000 plurality. At
George L. Farley, is not a personal re- the Johnson headquarters his majority
buke to that gentleman in any manner, j js placed at a higher figure and the
but his defeat was in a great measure due' eiection of the entire democratic city
to the way his appointment was made j ticket is indicated by 5,000 or morej
by the county commissioners. Miss ' The democrats elected a majority of the
Foster's well known qualifications and councilmen.
Must Have Made the Corn Fly.
At the farm of Stephen A. Wiles,
in five and a half days, Claude Sanders
husked and scooped into a crib 585 bush
els of corn. This is the best for long
time husking we have record of up
to date. We had a case the other day
where one had husked 494 bushels in
five days, making about 99 bushels per
day. But this makes the daily average
over 106 bushels per day. Now, who
can beat this? Our columns are open
for any one who can do the turn. Let
us hear from you.
TU
her lady-like manners and appearance
won new friends for her in every sec
tion of the county that she visited. We
predict that Miss Foster will perform
the duties of the office to the letter and
that she will perform thosedutics to the
credit of the schools of the county and
those who reposed such confidence in
her by supporting her at the polls.
C. D. Quinton, who was re-elected to
the office of sheriff, has made many
friends since coming to Plattsmouth two
! extend sympathy to Mr. B'- in tie
hour of defeat.
J. M. Robert so, i on tl.o face of the
quainted over the county his election
would have been recorded among the
other successful candidates. He is a
fine young man and any county should
feel proud of him as a citizen, and we
j Becomes a Citizen of Plattsmouth.
! I. S. White, who held a sale some
time since, has moved into the plac
which he recently purchased from Mrs.
Matt Spader, last evening and has be
come a citizen of Plattsmouth. In con
versation with him this morning he said
that he had voted fifty-one years in the
precinct, and at last he had seen the
work he had done in that direction re
warded. We are glad to have Uncle
Ivan among us, knowing well that he
is a first-class citizen.