Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-12-05
AGRICULTgRE AND BANIk1Nc.

No well-lnf0rmed reader is ignorant
of the fact that our defective system of
banking operates to depress the market
value of all agricultural staples. A
bad currency injuries honest, home
staying industry farmore than lively,
itinerant trade, understanding, and spec
ulation generally. Our government
bank paper, which is worth in labor
ing mans hands less than ninety cents
on dollar, Judged by its market
price sincethe close Of the war, owes its
intrinsic meanness to official dishonesty.
Bank paper in general circulation be-
fore the war was worth to the farmer
and all others within one per cent on a
fair average of its face in coined gold
and silver. If some bank notes in
some places were at a greater discount,
they were an exceptional currency.
The average discount was less, or not
above one per cent. 1t is for the in
dustrial classes of the nation to say
whether the country has both
forsaken and forgotten all its
knowledge of honest banking bus
mess as practiced years ago.
The Hon. Jay Knox, Comptroller of
the Currency, in his report to Congress
says:
The average amount of specie held
by the New York State banks for ten
years previous to the year 1860 was
ST., 565 COG. OF this amount about one
eighth-say $780, held by
the country banks In their vaults, and
the balance-sdy SIS, 300;000--was held
in New York city. If from this amount
should be deducted the coin belonging
to banks and persons outside of the.
State, and the amount of checks pay
able in coin, it would be found that the
amount OF circulating notes issued in
the State of New York was on an
average, for ten years at least, five
tunes the amount Of specie ON deposit
for the purpose of redeeming their
notes"
These facts are exceedingly instruc-
tive, and instead Of proving the super
iority of our present banking system
as compared with that in use before
1860, as contended by the Comptroller,
they prove the reverse, Government
has had in the Treasury or subject
to its control, more than one-ffth as
much specie as legal tender notes
in circulation, but neither these
nor others have been at par
In place of doing fair banking busi-
ness, Government officials have been
largely engaged in speculations on the
credit of an upright people. Intelli-
gent and honest bankers in the State
of New York, before the war, knew how
to handle the farmers cotton, grain,
meat, and other provisions, tobacco,
wool and sugar, in a way to redeem
bank notes in gold and silver, with
small amount of coin ly-
ing idle i'll their vaults
Ignorant and mercenary politicians re-
pudiate all this dear-bought bank ex-
perience, and have given the national
paper currency for thirteen years that
has passed at a larger discount in the
aggregate than the country ever before
suffered IN its whole financial history
1t has broken hundreds and thousands
of wealthy and government protected
manufacturers IN the present crisis, and
the end Of private and public disasters
Is still in the distant future Tam
pering with the currency is q seri-
Ous business, az experience is proving.
As it is impossible to say what strong
partisan Congress Will do, our advice
to farmers and others is to avoid all pc
cunialy liabilities until our banking
system is settled on a specie-paying
basis. Every months delay to reach
this state of the currency is a wrong
done to honest industry for the benefit
of favored few, some Of whom are
known to be corrupt. 1t is impossible
by any act of Congress, incorporation
or tariff protection to legislate money
from one mans pocket into that of an
other without fraud and favoritism.
Large and profitable contracts during
the war, with high taxes and duties,
had a very demoralizing influence,
which still continues, making the peo-
pie servants TO political masters, who
rule the land with a rod of iron. If
farming pays under such state Of
public affairs, it is an exceptional case.
Farming demands both economy and
honesty in its currency, neither of
which now exists. 1t is like having a
half bushel that holds fifteen quarts
one day and seventeen the next. All
L