Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-02-10


them in liainrtrically Opposite direction. The
country at large is interested in a sound, and,
rs nearly as possible, Il hard money currency.
The banks are interested in flooding the coun-
try with paper money, and, consequently, de-
ranging the currency. Tt is tk~ir interest TO
drive out OF circulation every hard dollar, and
put in its place three Of paper money.
The first effort of bank, after it is organized,
i, to put out as large circulation, as many bills
lis it can put forth, and obtain IN return. means
that seem to be reliable, for the redemption OF
the same This effort never ceases until the
country becomes overwhelmed with bank paper
Il reaction necessarily takes place when mo-
mentary convulsion fellows anil the whole
country is called on to participate in The general
embarrassment and ruin that must inevitably
follow.
We have abundant and pressing inducements
to guar, ourselves, i'll every way we cail. against
excessive bank issues. 1t demolalizes country,
makes every man Spccnlator. makes real mo-
ncy scarce. and raises indefinitely the rate OF
interest; and tie best sticl that CAL DE thrown
around people To protect them against eH"r''!-
tant rates ol interest. will be found to ic proper
restrictions on the circulation Of paper money:
which will reach the object indirectly, while dl-
rect laws against usury will utterly fail.
We nave for ten years lrlst enjoyed apparent
y a state Of prosperity unprecedented: but is
not much Of it fiction Have we not l'ccn liy-
Ing un borrowed capital, that now. in or sober
sellSeS, we have lu pay lIouk ut the hundreds
Of millions Of i)unls that have been made among
ITS, ami which have passed Tor Zeal wealth
I.,ok at the vast >rilaS that have been borrowed
from foreign countries, AND whici! have been
spent among IL. and long since returned! by lis
to tie countries from which they came 10 par
CHASE cXlr.ya@lnl luXIlrrs There can be no
doubts aS 10 OIlr real prosperity for the las .cy
en Wears. i;!' aIInn>t every agricultural article
has commanded high l;iicci Il: !urcl sn countries
bat have we not pu!iivc;i that and Sicai the
borrowed money 4! i;r>rs uur real condition,
covered Ill TIC Zine under paper currency.
which has I,c2n so helu>ivr, a. to uElingc "lr
most + ldeat anu discreet men, 1t has 'tc!udctl
men; it has jclurd the whole nation, aid put
at ,i.lialce tie u,nry laws Of every State, AMI,
im,s; Convinced al Sohcl-t!linking men, that
laws made hy men are utterly l'i'irqnair 10
regulate tue v.inc oi In''y AM in"rc than any
other commodity and That supply ami demand
will govern, Il, certainly - that water will lind
its level.
It is well known that Il sliding scale Of inter-
est in the Hank Of England IS the great rrsu!a-
tor of monetary a!tairS in that country
Il am satisfied that every State in this Union
Nh lind If interest," in a55;i= sss Cue dsir; 'T1s,
for the rate of interest is the only sure index to
point out prrinl, vi ntlatiu,l and overtruIing,
anu, if Lett uncontrolled III. law, would serve 10
war;. us of approaching danger.
After the resumption in lSl0, interest was
n,,t1
more abunlcnt than OF recent wears The
banks of Til, State a!rl Georgia. could not, Tor
many YEATS get out Il circulation of their bills
for tic g.mnl reason that the country afforded la
demand Tor tt. and Wis full vi sul and >ilTcr,
which had to be displaced before the paper
would find It's way out. Agricultural AMI nil
public industrial enterprises went steadily alIca
in lS4j and III, wilea tic bank circulation "t
the United States waS yer! low. y" mai. VIII"
cuul,l rH+r mp:;cy. thnll3iI uI @lvllI. over per
cent. As President OF the iinilc.i!lc Cumm.
nv. | borrowed large SunS Ul npnty Tor ltlat
cnnIGlIIv ut ) urr cr:It and taL Iron: some u!
the best linallrirrS ul the cDuItrv. VI impcr
money became more abundant. speculation COM
men .cI with il, hat in Isis ha'l I" rails"
NV rate Of i.tcrr.i H. u pr cent. ii 1919 tn
Der cent. .tltcr lSjD, | wa, llnlting OF the
open S,;,, AMI when the Company required tenn
,urarv loans, tic Interest ranged rua 5 ~ 10
per cent
Have Won nut noticed, that the rate Of inter
c,t iii New York aud Boston hts been Q!I0cIl in
the new wSla;rr,, for five years past, 1T from 10
~ Is jicr cent, vibrating with tnr ;nk Issues!
The u>.lry laws are set at noiislt in al the
Northern cities II it were otherwise, the c'':n-
mercc of the country could mt 90 oa. Do yun
not know that the Banks Of this State have
shown rel lciancc to lrla ;noiicv on pac: that
doe; not Iry 10 pei cent
Have vu!l not noticed. Tor many month; past:
that uur Banks have drawn the cords tigl;
aruu regular blisil;cSS, and thrown almost out
Of use the old system of making +, q and :
months loans. which all business, except pro-
ducc dealers and S,,ccula!or>, requires; III short
do YOU not know that the ll,Ery laws are set at
nolight by tic Banks OF Til, State, and So it
will be whenever the Banks cal nilstc the
country and iII it with spectators that ;Ire al
ways ready to give twice Al mitch interest mo
ncv for lni.l$, as any regular business. can allnrd
to pay?
Do you know low the New York Banks
cvulc the ualry laws? \ customer goes into Il
New iurk Bank to borrow $l2,pO0. The bank
is ready to uan. but requires the borrower to
give note for $50 ,000, and pay interest on that
amount lie pays the interest, l,4OO. in adj
vance, and receives Sl0,GO0, leaving 5000 Of
the nett proceeds, on flaW=i!p, 10 be placed to
the credit of the noto and loaned to somc other
customer. Now, this is downright dodge of
the law, which Northern man will unblussing-
" make, but such as would be entirely rcpug
nant to the nicer feelings of Southern man.
But only change the .ure Of the transaction,
and maSc the note, bill Of exchange, Il kite
if needs be, (IUr there is charm in the words,
bill Of exchange which is lnu.lc to the ear of a
Southern bankcr.) On tllat kind Of paper the
borrower can be as ir@en,y silavcrl in South
Carolina is in New York, or anywhere else
Notwithstanding the nigh rate Of interest that
every transaction WAS based upon three months
ago, omr dollar would not purchase more than
81, cents Of what it would have done in 1916
Negroes, mules, bacon, and all the appliance, for
agriculture, nave risen in that proportion, anu
YOU find man Us willing now to borrow money
at 10 per cent, TO purchase a negro for 81 POO,
as lie would have been to give I per cent. ten
wears ago for cash to purchase negro at $500
This is not the result of supcrabundaace Of
money. hut tho effect Of the prevailing spirit Of
speculation. Money is like every other mer-
camille commodity, it follows with great case
and rapi,lity the channels that lead to the hest
markets The demand has been great in New
York for several years past, and merchants ut
distant points have been oilrrc!l 10 to II per
cent. premium, for advanced payments. Re-
ccntly such offers have been raised to twenty
ner cent. You see what an induccment here is,
for sending money away Banks are importuned
to loan, and have lOancd hundreds of thousands