The Magnolia gazette. [volume] (Magnolia, Miss.) 1872-current, 1892-10-15
SOMETHING BETTER.


rcncy. The demand for the coinage
of fr, e silver is upon the same
basis. More currency for the peo-
pie. More currency TO move the
crops. More currency to carry the
crops after they are grown.
There is something better
than either of the third party's
d mands on the currency question.
1t is practicable and within reach,
The repeal of the tax on State
banks would give the South one
hundred millions of dollars more
currency at once, aud currency
that would remain at home, aud
be utiliz d in the development of
home industry.
The basis Of such currency would
be home securities and gold dol
lars. The State bank notes of
Louisiana in the ante b 'llum days
were as good as the notes of he
Bank Of England. All State bank
issues with the same safeguards
would be just as sound.
The STATE tank desiring to take
out say $500, 900 ofuotes purchased
AID deposit d in the treasury OF
the State, that amount of bonds of
the city Of New Orleans or the
State OF l. uIsiana. Upon this de-
pOslt the notes were authorized.
Tde bank was required also to
keep reserve at all times for pur-
poses OF redemption IN specie equal
10 335 per cent of its outstanding
notes.
If notes we're presented to the
bank and payment of their face
value in specie refused, they were
presented to the treasurer of thr
State who was authorized TO sell
the bonds belonging TO the bank
and deposited there and with the
proceeds pay the same. Under
such "A system the note holder is
fullv protected.
The national bank law Was a
copy of the statutes of Louisiana,
New York aud Massachusetts, ex-
cept the requirement of United
States bonds as the deposit. The
war bad been over for fifteen years
before the national bonds we're as
good as the bonds of the city of
New Orleans to-day. Our local
municipal four per cent bonds sell
at par, and it was not until about
1880 that the United States gov
ernmeut could float a 4 per cent
loan. Bank notes having rs a de-
posit for security New Orleans 4
per cents to-day, would he safer
than the national bank note issues
OF 1865 to 1875. The credit Of the
State of Louisiana is as good now
as was the credit of che general
government twenty years ago.
Nor are this Safe and city the
exception. All over the South
there are Stat4, city ami county
bonds that are perfectly safe COLA
terals and would afford ample
security for the issuance of bank
notes. The utilization of these
securities in such a manner would
improve their standing, besides
making them source of financial
relief
The State banking system would
denatiOnallze the currency, besides
making it elastic. AS it is at pres.
ent constituted it flows to Wall
street and congests there. Every
ia | there is tremendous strain
throughout the Snnth to procure
currency 10 move the crops. The
millions til It have to be sent to
the iaterior for that purpose con.
vulse the banking centers and
bring on dangerous stringeucy.
New Orleans has 60 get money
fir I'M New York TO supply this an.
nual drain, and all her resource,
are required to tide oyer the pres.
sure If she had recourse to fOuI
or FIVE millions of State bank
noes the problem w0uli be sim,
flied. AS the demand for cur
rem y Increased the notes would
go 0ut' Wh.n the return tide Sci
N the notes would be pr. scented
for REDEEM ption, and held till new
call should I've miie. 1t wonlt
never fitw t0 New York or BOstol
aud Iemain there. 1t would be :
local currency, aad would suppl,
loc,I needs. 1t would be a cuir-n
cN backed by 335c in specie, ant
100 cents 10 good bonds for ever,
dollar issued, aud therefore il
every way as good as nationa
bank note.
When the Democratic party
clmes Into power in accordlncl
with its platform it will repeal th,
tax Oh State bank Issues, and the
: result will be the immediate aban
doument Of the charters OF nearl,
all the national banks and thei
conversion into State banks O
issue, and there will be an elAsti
and safe currency going out ii
every quar'er Of the republic tina
! will meet all requirements. New
Orleaus DELTA.
How's Your Head?