The Plattsmouth journal. (Plattsmouth, Nebraska) 1901-current, November 07, 1907, Image 1
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.