Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-12-10

lation now, exceeds forty milfioos, and II
/ twenty years may reach eighty millions o
itli abitants. when It's circulating media ma,
be required to exceed two hundred millioT
dollars.
No NECESSITY FOR ANTAGONIST.
Whatever may be the prejudices against cor
| porations, Il Is better to have one wei regu
| lated institution, under proper restrictions oi
tflls kind, than many small ones 10 accom-
/ pllsh the same result, governed and controlled
by mere local interests and schemes. As thS
! sun gives more light TO our planet than all tht
| stellar system, 10 such a bank, properly gov
erned, would confer more benefits on the indi
| yidual and commercial Interests Of the coun
try than four hundred banks with capital Ol
| one million each. There are now over Two
thousand national banks in the Union. The
| bank OF America would not be in antago1isnl
| with these. They would all work in harmony,
/ Il would have an expansive capacity Ike the
| old state banks, which would enable II 10 ac-
! commOdate the actual commercial wants OF
| the country, and defeat combinations us
Il notes being redeemable in specie, it would IN
v.te the coin back into the country, which
| has been suppianted Dy paper, reeieeIaaDle
/ only in Oiher paper promises, and thus pave
/ the way TO a full resumption Of specie pay
/ ments in year or two, the only real basis OF
| banking known to commerce.
HOW MUCH THE SOUTH AND WEST
| NOW SUFFER.
The great evil in the south and west is the
/ want OF currency, Gs sheWn by the inability
/ TO borrow il at less than from one to two per
J cent. per month. New YOrk, Pennsy lvania
and the New England States have more than
| their relative proportion Of the present cur
1 rency. II IS stated that they have, per capita,
| four times the bank capital we have in Nir-
g'nia and North Carolina. This relative pro-
portion is probably true OF the other southern
States. Hence, the New England states viii
| urge further contraction on congress, while
| the south and west will req uiTe greater eXpan-
/ sion. The latter being chiefly agricultural,
harvesting and marketing their crops once a
year, require a greater amount Of money from
october 10 April than at any other season OF
the year The expansibility OF the state
L. Ill nlmH~ rnaFa ID
mirably suited 10 moving the crops TO
market, thereby converting their issues
| into exchange which was preferred by The
| merchants 10 gold, in order 70 purchase their
/ stocks OF goods, and these bank issues were
retired when not required by commercial
| wants. These notes, 50 retired, constituted
| The reserve OF the state banks. They went
| back TO the banks for REDEEM ption whenever
| they had performed their legitimate func-
JiOns in commerce. Unlike the present gov
eminent plan, which keeps locked up over
] from sixty to eighty million dollars in coin-
when the industries ofthe country are perish
ing for the use of il, and calls this sustaining
the credits Of the government. such policy
Will degrade the credit Of any State. The
sooner the government abandOns the policy of
req ulring specie for all It's revenues on I'm port
atiOns, and at the same time compels the citi-
zens TO take paper and prom Ses for all his
dues, the better. In this distinction, the con-
specie payments for the people as soon as
practicable, a all enlightened nations Of
modern times have done.
CONCLUSIONS.
Ia a country so extensive as this with its
vast, undeveloped resources, the long distance
much of its production has 70 travel to reach
its ultimate market, the time necessary In the
transmission and return of funds, more cir
culatEng medium is required per capita, or in
proportion TO property, than in more densely-
settled countries, with markets in closer prOx-
unity to production. Hence the unwise poll
ey IN contracting the currency, already who'll
~ insufficient Tor industrial pursuits, and
thus adding 10 the present rate OF interest,"
aud paralyzing the right arm Of industry. No
amount OF pressure or contraction by govern
ment, brought to bear on q greenback dollar,
can ever give II the fixed ana uniform value
OF a gold dollar. The leopard cannot change
his spots. You cannot convert an owl into an
eagle. We have TO come to specie, and the
sooner the better. One such bank
as briefly and imperfectly sketched,
becomes the entering wedge. This
step taken, The road is plain and direct
TO RESUMPTION. and easily reached without
any great shock 70 our Industries, such as is
annually produced by the present system,
values viii probably shrink gradually, but
knowing ana realizing the cause, confidence
viii be maintained and the transition will moi
be 50 detrimental 70 the property and buSi-
ness OF the country, as one OF our periodical
panics. The scarcity or stringency so often
occurring in the currency, causing the excess
I'VE rate OF interest, IS owing 10 the limited
amount in circulation while the fluctuations
in it are inherent il paper issue without
coin basis to rest upon. Hence the panics
often produced by comparatively trivial
events, showing the inherent defects Of the
system. When confidence is impaired, their
notes issued give but Little concern TO the
banks. The government, having their de-
pOsits of bonds, makes their issue good in
any event in other currency. The depOs-
its in time OF trouble, which generally
exceed their capital, become the heavy re-
sponsibility. The spirit Of gain tempting the
banks 70 loan at high rates these deposits,
and being often unable to control them when
called for, causes the suspensions which re-
suit 50 Injuriously to the public interests.
One great evil grows ont of the practice OF
paying a liberal interest on deposits, thus
monopoiizing money which would otherwise
be expended IN the improvement and deYel-
Opement Of the country, charging excessive
interest to spectators for its use, whose fall
ures impair confidence and inju ure the banks
as well as the people. To avoid such results,
congress should pass law at an early day,
that il shall cause forfeiture of the charter
OF any national bank, which shall pay
interest or bonus TO any one for the use,
loan or deposit of any money, currency or
coin. The rate of interest viii thus be re-
duced, the banks will be safer and better, and
the country viii more rapidly develOpe.