The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1891-11-05

I.1N& nancial policy
s.IreaAS %R\ that would relieve
4 NV l|| them of the pres
@a~sA:IeSAAW ent stringent con-
~ @S dition un d e r
which the country suffers. While many
think the Sub-treasury plan is the
thing needed others are not welded to
that idea altogether and will readily
accept "something better" if offered
them. Ex-senator Thomas NJ. Nor
wood, of Georgia, thinks he has hit
upon it and offers the following:
He advances plan Of banking that
is new. He contends that the accel-
Grated accumulation of capital in few
Eastern States and in the hands of a
few persons is destructive to the West
and South, and will finally destroy the
Eastern States. 1t produces conges-
tlon in one part of our political body
and paralysis in the other parts. His
plan is in brief, for Congress to direct
its Secretary of the Treasury to pre-
pare sufficient number of legal ten
der notes of convenient denomina-
tions, which, added to the existing
currency, will give thirty, forty, or
fifty dollars per capita. These notes
are to be receivable for all debts and
dues except duties on imports. They
are to be redeemed by the United
States government on presentation at
the treasury or treasures establish
ed at convenient cities. The treasurer
shall hold at least IS per cent. OF the
issue in coin, gold and silver, to re-
deem the notes, that being enough
and as much as banks now hold for
redemption purposes. The percentage
of coin, however, can be regulated by
experience. He proposes to re-adjust
and measurably equalize the circula-
tlon of the currency in this way: Each
State on demand shall receive of legal
tenders an amount which, added to its
existing circulation, will make the
amount per capita decided on by
Congress. The banking capital in
each State is to be the standard for
ascertaining its circulation, unless a
better can be devised. To illustrate :
Georgia's population in round num-
bers is 100000. The amount per
capita fixed by Congress for the whole
population being $40, Georgia would
be entitled to eighty million dollars,
but her present banking capital being
thirty millions, that sum must be de-
Quoted and her quota of legal tenders
would be fifty millions. The ratable
amount of circulation he proposes
shall be used by each State according
as the people of the Shate should de-
termine. That is, it may be used in
banking or be let by the State acting
through bureau of finance to indi-
viduals on such securities as prudent
bank now takes for loans. His plan
is for each State to hold percentage
Of this currency to meet squeezes and
scoops by Wall Street, and to foster
banking with part and lend the re-
mainder to individuals and corpora
tons that each State shall fix by law
a reasonable rate of interest, not above
five per cent, and by law name the
securities on which the bureau of
finance shall lend, the percentage of
value to be lent and time; that land
shall be one of the securities, and that
each State shall lend on its own pro-
ducts. For instance, Georgia's great
product being cotton, it should be
security or collateral under proper
and safe conditions; wheat and corn
being the chief products of Kansas,
Iowa, etc, they should lend on these
products. Norwood contends that when
money can draw to itself a per cent.
by going into manufactures, mining,
ETC., It will 60 there, and thus all the
natural resources of the State will be
developed and its wealth increased to
the benefit Of every citizen, whereas
banking produces no wealth and ben
efits only the few who receive the divi-
dends.
Norwood took Georgia and Kansas
to illustrate what can be done under
his financial system. He proposes
that each State should set aside not
less than 10 per cent. Of the legal
tenders to protect its own citizens
against financial crises and squeezes.
Geargia could increase her banking
capital $4,000, 900 and lend $780,
ooo,oo on long time, interest paya-
bic semi-annually, to individuals and
corporations who have valuable mines
to be developed and who desire to
build cotton factories, TO manufacturers
Of wooden wares and iron; in short,
to bring into activity and use her nat
ural resources, which have lain un-
touched for twenty-five years only be
cause her people have had no money
to work with. With $50, 100000 thus
lent by the State at 5 per cent. she
would receive annually one million,
/ FIVE hundred thousand dollars. With
that she could establish sinking fund
OF S5oo,oo per annum, and in twenty
years pay off her funded debt. With
this in hand she could begin to reduce
State taxation at once; could largely