The Caucasian. (Clinton, N.C.) 188?-1913, 1890-04-17
THE M0NETIZATION OF LAND.
A New and Safe Edition Of Free Bank
ing---An IDEAL Currency.

A New and Safe Edition Of Free Bank
ing--An IDEAL Currency.
By F. r. COOPER.
NO. 2.
Mr.. Editor: OF all the evils
that afftict the industrial classes
this country the greatest is our
national banking system. Pre-
vious to 1860 we hand what is
known as free banking. The
system was briefly this. Any
persons who so desired could
form themselves into bank.
They were required to keep on
deposit as a security for the
redemption of their notes one
dollar in coin for every three
dollars i'll notes issued b. them.
Money was cheap and could be
easily obtained upon reasonable
security. The country was ex-
ceedingly prosperous. The de-
fec5 III the system was the
organization of may wildcat
banks and O. lack Of safety. 1t
often happened that the bank
failed and its notes became
worthless, then creating feel
ing of insecurity. Such a cur
rency lacked one desirable ele
ment-safety, cannot this be
remedied and the principle of
free banking with its many
good features preserved? Sup
pose we had free banking and
a. company should be formed IN
Clinton with q capitol Of one
hundred thousand dollars. Now
let them invest that capitol in
State banks to be kept in the
State treasury as a, security that
the bills issued would be paid
Then let them pledge as addi-
tiOnal security to the same effect
too hundred thousand dollars in
imperishable seal estate. They
have then perfect security for
the redemption Of their bills to
the amount of three hundred
| thousand dollars. Let the
bank then be organized and
issue bank bills to circulate as
currency to the amount Of three
hundred thousand dollars. Such
a currency would be perfectly
safe and have the full confidence
Of all. It would be impossible
for the President or cashier tC
skip to Canada with either the
land or the bonds. Such cur
rency wonld also be perfectly
flexible, that is its volume
would increase or diminish &C
cording to the demand. If such
a bank should keep its bills al
| loaned out at ) per cent it
: would receive Oh the original
capitol of 100000 just Is pei
cent because 5 per cent on $500,
600 is equal to Is per cent OF
r 100000. Then also it would
receive as interest on its bond!
in the treasury about 4 per cent
making in all - per cent on th,
capitol invested. A business 81
, profitable would attract muc1
: capital. More and larger bank,
, would be organized an d tn,
, volume Of currency would be 81
large that it could not all loaned
at 5 per cent and the rate of in
terest would fall to about 3 pc
, cent and even at this low rat
such bank would make abuu
10 per cent on the capitol in
vested. There you see Nh
Editor, such a currency WoulC
|. not only be perfectly Sqte bu
r perfectly feriblc and responsive
+ to demand. Laud would rapid,
- increase in value by being mad
= the basis Of the currency. /
U spirit Of Enterprise would awak
y and the slumbering energies O
d our people be called into action
4 As matters now stand man
g profitable enterprises fail fo
1 want of capitol. Interest is to-
high and money too hard to gel
h An ideal currency is one tina
is safe, flexible, cheap and nc
&C liable to beco ne concentrate
. in the money ceuters, and
Il currency such as we have indics
:. ted would possess all thes
- elements in the highest posi-
BILE degree.
8 Give us the 1nonetization Q
land, and instead of the preseI
h' depressed condition of Agricul
ture and growing povert
~ ~ among our farmers, the pros
rs porous days from 1850 to 1876
a would come again and tn
it wheels of industry revolve wit
Il newness of life.
- If we are in error IN this ma
to ter we hope some one Will b
& sagacious enough to point OF
It. our mistakes. One thing
y certain-the people need an
20 mean to have relief from tt
ps monstrous financial systel
is which is crushing them undt
u the feet of bond holders an
80 80 national banks.
Il We remember in our schO'
boy days that in our Algebl
were many problems with ga
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