The midland journal. (Rising Sun, Md.) 1885-1947, 1892-11-25
State Banks.

are itching to get back to the state
business again and are edg.
ing on to the subject cautiously by
guardedly presenting the most favor
able side of the plan, keeping its
defects and dangerous features con.
cealed by emitting all mention of
them. A company,-presumably
bankers-have addressed carefully
prepared article to the editor of the
Boston Herald which is copied in
The Financier without comment.
These gentlemen of the Hub conclude
their proclamation which is intended
as feeler to the public, with this
assurance: "The National bank cir
cnlation is in a moribund condition.
which is to say in dying condition,
and their cautiously suggested
remedy is condensed in the follow
ing sentence contained in their
labored pied for a return to state
bank issues. They say, sit is worth
considering whether the standard to
be fixed by Congress might not be
such that no State Bank circulation
would be relieved from the 10 per
cent tax unless the State which
chartered the banks should guarantee
the redemption of the circulation as
the United States does the National
Bank notes, II II x requiring also a
deposit of securities from the banks :"
Such scheme would fall still bonn.
The National banks chief complaint
is that they are required to furnish
expensive security for their circula
ton, and if the state demanded such
security as pledge for guaranteeing
the banks notes of what advantage
would it be to the banks to shift
from national charters TO state
charter? Besides the states never
could make the notes of their banks
legal tender and therefore they would
be at a discount outside of the
state, not received by the National
government for taxes and such notes
would be condemned as 'cheap
money!" and cheap, not in the sense
that these advocates of a return to
state banks when they seek to dis
parage silver money, but in the true
sense of the term, cheap because it
would be at discount Tor it's lack OF
legal tender quality. And if the
issue of such state banks as recon
mended was bound by cast iron
guarantee in order TO secure state
Endorsement, it would be hampered
with all the objections urged against
the "moribund' National bank
issues, and would fail to possess
those "elastic" qualities which is
the bane of the National bank issues
But this entire scheme is but travel
ing round Robin Hoods 5arn to come
back to the same point they start
from. The National government is
the only power which can create
legal tender money. 1t can guaran-
tee tina: money by its taxing powe,
upon every dollars worth of property
in the nation il such guarantee was
necessary, but there is no other guar
antee needed than simple act Of
congress declaring the money it issues
TO be legal tender for all debts and
dues public and private within the
Jurisdiction of the government which
stands behind every law made by
congress. The power of the govern
ment declares this law shall be obey
ed.
These banking financiers know all
this but they keep as far away as
possible from such a common sense
method, because they want to hang
onto the issue of the money of the
people; while they can hold in their
grasp that prerogative they can con.
tinue to tax the people to an extent
only limited by their ability to pay
And not only this but if they can
keep in their hands the exclusi We
privilege of issuing the money oil
the country they can control both
government and the business Of the
country, continue to be complete
masters of the nation and people as
they are now. No. The people
want neither State banks or National
banks of issue, bnt their demand ia
that the government shall be the
sole issuer of the paper as we'll as
the metal money of the Nation, and
that no private corporation shall be
vested with the prerogative to issue
a single dollar. The way out of this
money difficulty which our learned
financial doctors profess to be so
puzzled over is for the government
to issue as much money as borrowers
can give am ole security for the retnrn