The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-18
Norwood's Currency Plan.
From the Mel0 YORK. Press.

Ex-senator Thomas NJ. Norwood OF Geor-
gia has shown the first evidence that any
prominent southern farmers allianceman
has given OF returning to financial common
sense. Even he has returned only part of
the way; but he has grssped the important
truth that the pCoper distribution OF the
volume OF the currency where 1t is needed
Is as necessary to healthy business pros
perlty IS a full supply Of cur
rency He has propounded a financial
plaA, the purpose of which is to recognizes
tnis idea more completely than heretofore.
He would have the national government
issue legal tender notes 10 the government
of each state in quantities based on that
states population and consequent title to a
certain quantity Of circulating medium per
capita. Each state, under the Norwood
plan, Is to have in its governmental ma
chinery bureau of finance, and if it has
say 100000 population, like New York,
and therefore, at a rate OF $50 cir
cuiation per capita, wants $500, 000, 600 of
currency, the volume of it's national bank-
ing capital is to be deducted from this
$500, 600 600, and the treasury department is
to supply legal tenders to its state bureau
Of finance to the amount Of the remainder.
This bureau is to lend the legal tender notes
on such securities as the legislature may
prescribe, at rate of interest also limited
by law.
Mr.. Norwood does not condescend to ex-
plain why the government should issue
mere paper money when it has an excellent
law under which it can issue about 81 500
600 month on an actual intrinsic value Of
silver bullion, and his suggestion that the
state legislature should order the legal ten~
ders loaned on land as collateral would
probably excite a good deal Of opposition.
But the significant feature of his plan is his
FnroOnifiOr Of tho OF hVfi vol
Of the national banks. Even this farmers
alliance statesman, starting out
to evolve an ideal method Of distribut-
Ing the currency where it is most wanted,
admits that he cannot improve on the ma
chinery of the national banking system, SO
far as it goes, for ne simply supplements 1t
where it does not 60. But in place OF such
an extension of its facilities as would pro-
vide that each town that wanted any cur
rency could get it through the national
banks created in that town by the very
conditions OF development that made it
need currency, he centraliZes the supple
mentsry distributing agency in the state
capital. in bureau of the government.
Why this Capitalization and paternalism?
Why not let the people do it instead Of the
government Why not remove every re-
striction on the establishment Of national
banks, and let the supplementary currency
outlets be as we'll distributed as the eStab-
lished outletss Why intrust to politicians
the important duty that tho people can do
and ought to be free to do for themselvesa
Why not make the national banking sys-
TEN permanent and popular, and make it
80 eesy for the people to organizs national
banks whenever and wherever they want
81 them that the supply of currency would
spontaneously distribute itself exactly as
ar as the demand for it9
The reason and answer is doubtless this
national bank, even if it were organized
vi by 10000 workingmen instead Of tea capt.
tahsS, would be very likely to employ as
It's officers business men of COMMON sense
who knew what good security was and who
would refuse TO lend on poor security.
That is not what Norwood wants. On the
contrary. that is why he objects to
national banks. He and all the other
farmers alliance statesmen want currency
bureaus that will lend money on poor
security. The poorer the security the better
tney will be pleased; for, according to
Vnen, 1t is the governments duty to make
II easy Tor the people to get currency with
OUT working for it and earning it, aud the
worse the security is the better the govern
Inent will be fulfilling its duty to the poor
man. This is paternalism run med.