The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-12-05
S. G.
Friday Morning, December 8. 1878.
The Need OF More Ranking Capital Ira
tho South ~


The Need OF More HankIng Capital Ira
the South.
In his message, President Grant e1-
presses the opinion that the financial
panic, and the distress of individuals in
consequence of 1t, have their compensa-
tions in the proof they furnish, aud the
conviction they have made general. of
The necessity .! having specie basi: to
our banking system. A specie basis
and an elastic circulating medium, just
large enough for tho legitimate pur-
poses Of trade and commerce, are the
necessities aud the demands Of the hour.
He points to the fact that much more
money is required to transact the trade
during the fall and winter months,
when crops require to be moved. than
at any other period. 1t is siraugs that
lie did not particularize more fully
where the hardships of all absence of
sufficient currency take special aud
hurtful effect. It is ia the cotton grow.
ing States. We look in vain for any
recommendation that they shall be ro-
lieved by large, issue or a more equit-
able distribution of the existing national
currency.
According to recent report of the
Comptroller OF Currency, i. aggregates
S773. OBS. Cos, of which the sum of $685..
117,673 is available. The estimated
population, in 1873, is 4l2, Il, 2OS. Di-
vide the currency by the population,
and we have: Gross currency per per.
son, SlS.22; ava liable currency per per-
son, $3.50. The bank note currency is
divided thus: New England. per head,
S3f 10; Middle States, per head, SI2 80;
South and Southwestern States, per
head, S2.97; Western States, per head,
Sill. As the aggregate currency is
about double the bank issues, tho gross
currency per head is about: New Eng
land, $G2 80; Middle States, $25. 60;
South and Southwest, 1886: Western,
Sl4 %. A writer in the Southern Maga-
zine. Mr.. Appleton Ok Smith, of the
Lombard Exchange. London, after pre-
sonting these and other statistios. makes
some specific recommendations to ro.
meiy the existing evils Of our financial
system. The first aud most important
of these is the repeal of the law which
imposes tax upon the issues of State
banks. The second is, that Congress
should provide for the issue of $1,000
000,GC0 United States irredcemable
three per cent. registered bonds of large
denominations. for banking purposes. of
which 100000, 900 should be appropri-
ated to the Southern States. We pass
by the other measures urged in conncc-
ton with this issue, mentioning only one
OF them.
This is distinct in itself, und yet bears
upon the general result. It is that
Congress should, by law, provide for
the issue Of 100000, 900 in treasury
bills, to be. for all purposes and al OBJ
iects, at all times aud in all places in
tho United States, OF an equal standard
with gold. This issue would ill all the
fNc'A" iS4 biS1f ~ 10
the bills of the banks now serve, name.
ly, that they have equal currency all over
the United States. Besides, he does not
propose any Interference whatever with
the present national banks. There is
plenty vi room for both, and they need
not clash. lie would merely divest the
national banks uf the right to interfere
with specie paying Safe. banks, by re-
pcaling the tax now imposed on State
bank issues. He is for removing these
disabilities ard restrictions, and for let.
ting banking stand On its own merits.
1t is no wonder that business is So i'm.
pedci III the SJu:!i, South west and
West, when we see the unequal dis:ribu-
lion OF national currency, and the pro
h,5ition which checks and prevents
State issues. The stinted supply do,cd
ont 10 the South tends also to keep
money up at most costly iignrc. Ii is
now luxury only to be enjoyed by the
rich; but cheap money is just as ueccs-