The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-06-09

banks now as then. Banks of issue
chartered by the Federal or State Gov
ernments have, alike, proved failures
of the worst character. By their ability
to expand and contract the currency
at will, they encourage speculation,
enhance values, and in turn depress
prices and ruin the debtors-the mer-
chant, the manufacturer and the far
mer-whiIst the banks reap profit in
buying up their deprecated paper
with funds drawn out of the United
States Treasury which had been taxed
out of the people to pay the expenses
of the government. 1t has been evil
dent for many years, that as the banks
have increased, their control of legis-
lation and the Federal Treasury has
also increased.
Instead Of holding the banks to a
forfeiture of their charters when they
have violated the same, their offences
have cOndOned and the funds of the
government placed at their disposal.
The passage of the silver bill, so long
as banks of issue are in existence,
would be simply to give them an in
creased power for evil. The silver GER
tificates would not enter into general
circulation, but be stored away in the
vaults of the banks, as they were
handed in by depositors, and their own
bills substituted in payment of checks,
and for all loans made by the banks.
When they shall have issued these to
their full limit, and speculation and
values become greatly stimulated and
enhanced, and when no further accom-
modations could be extended, the I'm
fortunate ~speculatOr, being no longer
abletO carry his stocks or the purchaser
of property to borrow to meet his de-
ferred payments, the banks, after
transferring their silver certificates in
the shape Of dividends, or in some
other c%unningly devised plan, would
resolve to suspend specie payments. A
delegation would be forthwith sent to
Washington, instructed either to com
pei a condOnement of their offences by
the government, or present the silver
certificates for payment. If these are
| redeemed, the treasury would be left
with nothing but their own paper to
show for an equal amount of specie
dollars taxed out of the people, and
for which they have not only received
no benefit, but which has been used to
lure them into debt which they have
been rendered unable to meet under
the surrounding depression and caus-
ing the loss of their accumulatiOns, the
result of years of toll and deprivation.
Disfranchise every bank of issue, and
capitalists will soon start banks of de-
posit and exchange to answer all the
demands of the country, and these
should be made to assume all the risks
Of other vocations. The government
should issue full legal tender notes to
to the extent of the wants of business
at the time and add yearly a proper
tionate increase of issue asthe business
of the country expands. Such an
issue can be put into circulation
in paying off the public debt,
the purchase of bullion to meet the
contingencies of war, and payments in
foreign countries and the home dis
bursements. The credit of these notes
should rest upon their full legal tender
feature or perhaps the public lands
being withdrawn from sale and leased
to occupants for ninety-nine years re-
Movable, Or annual payments might
serve as a basis to satisfy the fastid-
iOus.
But it is believed that the good
effects of this feature would be shown
in the inability of the government to
squander the land by donations to cor
porations and their accumulation in
the hands of the few. One-third of
the whole issue would probably pass
through the treasury of the govern
ment and be disbursed annual, leaving
the other two-thirds in quantity for
general circulation. Banks of exchange
would readily furnish foreign or do
nestle exchange at moderate rates to
any extent demanded. But it is not
likely that exchange, under proper
tariff regulations, would be against
this country, as her exports would ex-
ceed her imports. Such a currency
would answer all the purposes of bust
ness, continue of uniform value, pre-
vent the frequent expansions and con
fractions under which the people have
so long suffered, and confer a perma-
nent prosperity in all branches of
business. John Sherman recently said