Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1857-08-01
ALctterFrom II. MI. Starr.

Henry M. Starr, one of the earliest settlers
in the State, who was formerly wliig, but
who now acts will, the Democracy, has
published letter in the TT. Madison Plain
Dealer in advocacy of the adoption OF the
new Constitution. His remarks on the cur.
rency question are appropos:
Inregard to banking and paper money,
should be very hard money man, if it were
possible. But it seems ridiculous to SGT IN
an abstract theory to govern us, Which will
produce no result which we desire. Iowa
is surrounded on four sides by banks. The
whole Union is mandatory of Bank pa.
per-lowa excepted.
The currency Of every State circuatcs
here, provided our private bankers will take
it. II they do not, it goes at a discount
which the people muss stand.
In judging of cur old constitution and the
new, let US look back to our early history.
In 1916, when we formed our constitution,
the State of Illinois, and many others, were
bankrupt in their schemes of Internal I'M
provement, and as q natural consequence,
the Bank of Illinois and many other Banks
became insolvent, leaving Il large amount OF
worthless paper in circulation in our State.
Our people resolved that they would have
State without Banks, and without inter-
nal improvements, and no State debt. This
was wise at the time, but experience proves
that, although we prohibited the creation OF
Banks, and our leg islature made the issue
and circulation of Bank paper or paper to
be used as money, penal offence Zone year
imprisonment in the county Jail, and $1,000
fine, that we are flooded with Bank paper,
and that of the least responsible kind. We
are in the hands of private bankers. Any
| thing they receive at their counters is cur
rency. They supply to our State its cur
rency. They gett where it is the cheapest.
OF course they bring to us irresponsible pa
per. They go to Nebraska-to the Agricul-
tural Bank OF Tennessee-the Bank OF Te-
m~eh, &C., wherever there is an out o.
The cay Bank, and where loans can be made
at cheap rates. These private bankers reg
ulate the rate of interest. They all demand
Is per cent. as q minimnm--and all loans
| made out side the Banks are at an advance
on this bankers minimum. BY this kind o
accommodation, the people of our State lose
in interest and dep! eciate1, and rotten pa.
per, millions every year. Again, every
State in the Union and every nation of the
earth, not only now existing, but backward
to the palmy days of Greece and Rome, have
asserted the sovereign powers of regulating
their currency. 1t is the right and duty o.
every State to do this-to regulate aud gov.
erin their currency. Iowa resolved to have
no currency, and therefore had nothing to
govern. Now what has been our experience
under the old constitutional We were sup
piled with currency by private Bankers,
generally derived from irresponsible Banks
where they can borrow cheapest. Our State
is flooded with every sort of paper, and ~
citizen is safe in taking bill, un less he has
Banker at hand to take it on deposit -
Trying to rid ourselves Of paper currency
we are flooded with all sorts Of irresponsl-
bic paper. Trying to get along without
Banks and prob biting the issue and circu-
lation ofpaper ''to be used a. money!" every
eXpedient is resorted to evade the law and
to create paper money.
The public necessity sustains this issue OF
paper money. And obodient to this neces-
siry, the City of Burlington issues paper to
circulate as money and II new Institution
called savings Bank in Burlington is flood
ing the back country with its bills. The
former policy OF Iowa is a failure. The old
constitution and our laws are Il failure. Let
the State resume its sovereignty over tie
currency. The people are to control under
the new constitution and say whether they
viii have Banks or not.
4 C.pcn OK r.Ts.-A Now York rnercha Mt