The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1891-10-16

currency ruly t OF tne Vpltqa stefe he nd-
and ID the 6snds Sls OF d ! 4 iew ~ persons e Is dc.
s'ructive to tn, West and South, and will |
tinally destroy the Eastern States. IL
produces congestion 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 |
prepare sufficient number of legal ten.
der notes of convenient denominations, |
which, added to the existing currency,
will give thirty, forty. or fifty dol
lars per capita. These note, are to be re-
ceivable for all debts and dues except du.
ties on imports. They arc TO be redeemed
by tn, United States Government on pre-
sentation at the treasury or at sub-trcns
uries cstab ished Mt convenient cities. |
The treasurer shall hold at least 20 per
cent. OF the issue in coin, gold and silver,
to redeem the notes, that being enough
and as much rs banks now hold for re-
demption purposes. The percentage of
coin, however, can be regulated by ex
pcrience. He proposes to rc-adjust and
measursbly equalize the circulation Of
-tha.currepcY IN this WAY -Each State on
amount which added to its existing cir
culation will make the amount CT capita
decided on by Congress. The banking
capital in each State is to'bc the standard
for ascertaining its circulation, unless
better can be devised. TO illustrate:
Georgias population in round numbers is
1000, 900. 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 deducted and h"rquota
| of legal tenders would be fifty millions.
| The ratablc amount Of circulation he pro.
poses shall be used 10y each State accord.
log as the people of the State shall de.
tcrmine. That is, it may be used in
banking or be let by the State acting
through bureau of finance to individ-
uals on such securities as q prudent bank
now takes for loans. His plan is for each
state to hold percentage of this cur
lrnssta % yE 4Ee 4sEislusf d tSd;via Ia
uals and corporations; that each State
shall fix by law a reasonable rate of in, or
est, not above per cent and by law
name the securities on which the bureau
of finance shall lend, the perceatage of
value 70 be lent and time; that land shall
be one of the securities, and that each
State shall lend on its own products
For instance, Georgia's great product
being cotton, ii should be security or col.
Lateral 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
per cent. by going into manufacturers,
mining, ETC., it will go 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 benefits
only the few who receive the dividends.
Norwood took Georgia and Kansas to il
lustrate what can be done under his f.
State should set aside rc. .,s, ;;a.u
iU per cesr. of the legal tenders to pro-
tect its own citizens against financial
crises and squeezcs Georgia could in
crease her banking capital $40, 900, 900
and lend $50, 600, 0UO on long time in
terest payable semi annually, to indiyid-
uals and corpor 'tions who have valuable
mines to be developed and who desire TO
Duhld cotton factories, to- manufacturers
OF wooden wares and iron; in short, to
bring into activity and use her natural
resources, which are incalculabc and
which have lain untouched for twenty
tivc years only because her people have
had no money to work with With $50.
600, 600 thus lent by the State at per
cent she would receive annually one mil
lion. five hundred thousand dollars in in
terest With that she could establish a
| sinking fund of $500, 600 per annum, and
10 twenty years pay off her funded debt.
With this in hand she could begin to re-
duce state taxation at once could largely
| increase her school funds, and establish a
bureau OF immigration, aud in very few
| years discontinue taxation except for
county and municipal purposes Bor-
rowers from the State, would get value
received in the loan rs low interest,
would thus take the place of taxpayers.
Kansas could lend to her citizens mt s, 4
| or three per cent, and then they could
lift the present mortgage debt of 1885,.
600, 600, due mainly to the East, and at
the same time put interest money enough
in the State treasury to relieve them from
State taxation. He contends that as all
the moneV that can be borrowed is in the
Eastern states, it is practically useless to
the South and West Under the system
he advocates the money and security are
in the same State are Icighbors and
will exchange aud interc twill 90 to the
benefit of both lender and borrower and
all the people in the State; whereas, now
the interest paid, as rule goes East
The interest now paid per annum hy the
whole people goes to enrich those who
are already too rich 70 the safe Of the
Republic, and that interest woald be dis
! tribnted among the whole people taken
| by States.
He contends that the present banking
system is a monopoly, because it is based
on but one class of securities-Govern-
ment bonds; second, that it is monarchi-
cal, being fashioned on the plan of the
Bank of England during the first century
OF its existence; and, third, that our
banking system is no; based on money or
coin, but on paper credit. The whole
system rests on the Governments credit,
whereas hts proposed system would rest