Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-03

use were those issued under the State laws.
the bank circulation of the Southern and
Southwestern States was ST. ,097, 40S, and
OF the Western States Sl9. tiS4,5G4 In 1873,
under the National banking system, these
conditions were reversed; the banking cir
culation OF the South and Southwest was
but S4S, COG, while that of the West had
risen to SIS, 49,, 14S. In 1852 the ratio of
circulation per capita was; In the South
and Southwest S6.S7; West 2.49; in 1873 il
was in the South and Southwest s.. 90; West
800. In fact, New England and the West
seem to have feathered their nests at the
expense Of the South and Middle States.
These compare in population thus: New
England, 3,4ST ,923; West, II ,246, 40T; total
IA, ia, 331; Middle States, 9, So, 2j5; South
ern and Southwestern States, 1921, 6S5;
total, 2, S1G,94O.
The inequality Of the present distribu-
ton Of currency is such as to leave no
doubt that New England and the West
availed themselves of the absence of the
South 70 Isolate its old powerful ally, the
Middle States section, and to weaken it.
In 1862 the bank circulation of New Eng
land Was S6j,516, l55, and of the Middle
States So. 81, COS. In 1873 when we had
shot clear out OF sight of New England in
population, wealth, commerce, industry,
and everything else, the bank circulation
stood; New England Sll0, 800, Mid
die States Sl24, COS, l39, the former gaining
instead OF losing. In 1873 Pennsylvania,
though Sl,OOO,O0O,OO0 ahead OF Massachu-
sets III wealth, and exceeding all New
England IN population, had vet but ST.
DO, ISL. In 1871 our bank circulation was
nearly equal, but in the interval Massa-
ehuSetts las gObbled up the flvOrs of the
National government at cur expense. The
Middle States control twO-thirds of the
railway system of the whole republic. In
productive industry they are ahead of New
England and the West combined. In COM
merce they eclipse all the rest of the re
public. The following statement will show
the trade Of the two chief ports of New
York and Massachusetts, and the bank cir
culatiOH allowed to these States:
1873. New York. Boston.
Foreign imports S}2G 331 ~ sos, OS3, 305
Domestic expOrts..... 313,l23,9G3 z ,O3S,925
Foreign eNp0rts-...... 1SSs2e9 23j3,l ~
Bank elreulatiOn.-.... GO,Js6,o06 50, 523,6Il
As natural consequence of this state of
things, while New York and Pennsylvania
were paralyzed for want Of circulation in
the revIIlsiOn, Boston was unmOyed. A
single Southern port (New Orleans) eX-
ported during the last fiscal year domestic
produce TO the amount of S10I, 320, $50, vet
had not half as much circulation as the
little State of Rhode Islandl The same
port imported Of foreign goods S19,933,3 44,
while Providence imported S7ST,43S. In
fact, the present distribution Of bank cur
rency proceeds upon no system that can be
TecOnciled with reason, business or COM
mon sense. No test can be applied that
will not show that the rankest injustice has
been done TO the Middle and Southern
States.
If the circulation of the National cur
rency is TO be issued only through National
banks, let it be appOFtioned to the. States
in proportion 10 wealth and population.
Wealth is the only true basis, after all, on
which all currency should be issued; say
81 in currency to every $40 in wealth.
This would regulate expansion as business,
wealth and population increased, without
deranging values in the least.