The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-03-15

| the best safeguards against the Western
| spirit Of imitation that the East so much
breads. The Herald declares that the East
would prefer the Southern plan Of re-estab-
fishing the State banks to the Western plan
of initiating the currency. The proposed sys-
tenn Is more willingly accepted by Eastern
men, for the reason that 1t has already
| been tried, in -belum times. when 1t was
found eminently successful. There is general
sentiment in the country just now in favor oi
returning to our old systems Of finance such
as were in use before the Radical politicians
unsettled everything. overrode everything
and ridiculed and laughed ut political econo.
| my in their wild financial legislation. There
| is a general demand that the country be
placed financially. as far as practicable. where
| it stood in 1860. The reconciliation Of slve,
| was the fruit Of this popular feeling. The re-
| establishment of State banks will be another
| step towards wiping out the ideas and memo.
ries of the war. The State banks were de-
stroyed as war measure: now that the war
is ended there is no reason why they should
not be restored to life.
A dozen papers have shown tho advantages
that State banks would bring to the South
It is wholly supeliluous to go over these
| again, because they have never been doubted
or denied. TO Louisiana and New Orleans,
however this system would bring greater
benefits than TO any other portion Of the
Union. 1t Is a system that prevailed here In
more prosperous and happier days-ono I'M
der which our city flourlshed; that was found
eminently suited tu our manner of doing bust
ness: that would never have been changed or
destroyed by anything less demoralizing and
overwhelming than war.
We see just now our trade returning At
no time since the war has the future oG New
Orleans been brighter, q Tho change in our
political situation. the success of the jetties,
the promised grain trade Of the Northwest
the revival of our sugar industry. an unpre-
cedented increase in cotton receipts. a prom
ised line to Brazil, the Texas Pacific rail
road-all these promise 1s a bright future
new and surer prosp ty. Our trade must
in the next few year q doubled or trehled.
How are we prepared for this emergency?
The war swept our banks away olard times,
heavy taxation, bad government q thousand
among us. New Orleans finds herself to-day
with scarcely enough capital to move the
crops which she controls, and wholly incapa-
bic Of grasping and holding the new trade
she expects and deserves to get. We want
capital to-day; we will need it twice as much
in n very few years. Whence is it to Gomez
The West is without it, the East is timid
and moreover much Of its capital has been
swept away in the past half dozen years.
There has been talk of a commission to visit
Europe and invite European capital TO the
South-an excellent idea, which it Is to he
hoped will be carried into effect. But why
cannot we take other steps to secure capital
in case this European commission should fail
to get more capital here, if itsuoceeds. We can
do this Before the war we had half a dozen
State banks in this city. whose notes were
always at par. sometimes even above par. As
n security for their circulation these banks
held city consolidated bonds. If the tax on
the circulation Of State banks were abolished
we could to-day re-establisl these banks on
the basis Of our State and city bonds. This
would thrice benefit us.
} 1t would in substance convert our debt into |
useful capital. Much Of the debt is to-day
used. 1t is true, as capital deposited as secu-
9lumsness of such Il system With these |
ponds rs security for the circulation of the |
state banks. we should arrive Mt the same end |
u q much simpler and more natural manner |
Then. also. there arc many bonds held at |
he North that could not refuse this invita-
jon; that would return here and circulate |
among us IN the form Of bank notes
Org bonds would thus furnish capital for n
lozen new banks, If necessary, and give us
vi the money we want
Nor are the advantages this change would
'riSg to our credit to be overlooked The
act that our bonds were above par, which
hey would certainly be under the new sys-
en- would be a cordial invitation to capital
II all kinds to visit this State, and would UNI
lonbtedly bring millions Of dollars here.
The proposed repeal of this section of tho
rational bank law taxing State bank circula-
ion has never been brought formally and
practically before Congress. 1t is. perhaps.
letter that, this should be SO, asot gives
he presS an opportunity to moro freely
|iscuss the question. 1t has been thor
ughIy discussed. and the decision has been
n favor OF State banks. The East, the
noneyed section OF the country, does not
how that opposition to the measure that
1e expected. There seems to be no reason
fhy the matter cannot now be brought prac-
cally before Congress. That body Is en-
aged on the great financial question of the
ountry. ltproposes to settle and determine
hose questions SO that they will never como
p again for legislation There is no more
appropriate time, therefore, for Congress to
'ipe out that war measure that abolished our
tate banking system.
MARRIED.