The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1892-05-18

| ~NcNo LILO uAoACidl pAOUlSA 10 tuO
most difficult Of solution in the science
Of government.
A full and accurate knowledge Of
figures and facts are absolutely neces-
sary to arrive at correct conclusions.
The report of the Comptroller ofthe
Currency shows that on the 25th of Sep
tember, 1891, there were 3,670 National
banks. The aggregate capital stock Of
these banks was $677, ,426, ,S76.25. Their
circulation was s131 1923, ,3Ol.5O. To
secure their circulation they deposited
with the Treasurer Sl5O,O35, 800 in re-
gistered bonds of the United States
government.
The deposits by individuals we're ST.
59S, ,318, ,6s1. 81. Their loans and discounts
were s2,0O5, ,46s, ,205. SO.
The above figures and facts show that
the bills alone of these banks are Sc
cured by bonds of the government.
Creditors are not secured.
! These banks like all others established
since the founding of the Bank of En-
gland in 1894 are based on credit, con-
| fidepce and chance-more on chance
than anything else.
| Since the establishment of the pre-
sent National banking system % years
ago, 164 National banks have failed
with a clear loss to creditors Of SIS, 49,
$50.
! twenty-five National banks failed
last year having a capital stock Of S3,-
662, 900.
On the 31st Of August, 1865, the in
terest bearing obligations of the govern
ment were 81, 3S3, ,033,3 ,315.
On the 31st of October, 1891, it was
reduced to $G49, 1850, ,232.
With the cancellation of the reg
istered bonds of the government the
present National banking system will
expire. The last of them are due in
1907.
Under the system Of the State banks
in 1S4l the total bank capital was $317,-
642, 1892. During the year 1S4l fifty-five
banks failed with an aggregated capita!
of SCI, ,036, 265 and circulation of $23, ST.
! 1852.
In nearly every instance the entire
capital of the banks that failed was
lost, yet men advocate going back to
that system. Under the National
banking system the bills Of the banks
are secured and we have a National
currency. In these respects the system
of National banks is superior to the
system of State banks.
Both, however, are seriously defec-
tive and should be displaced by better
system.
A system Of State treasures can be
worked up to perfection. They can te
made perfectly safe and blessing
to the whole people. From 2 to 8 per
cent. is all that can in the aggregate be
annually made, and no higher interest
should be charged. This the wealth of
| nations clearly demonstrates. The duty
rests on Congress under our constitu-
tion of government to provide uni
, form National currency for the whole
people. 1t should be issued and ad-
vanced on property properly restricted
and secured at low rate of interest or
| without interest.
II South Carolina should through
her legislature ask Congress to order
100000 dollars in legal tenders
printed for her and take them out by
a deposit of her bond with the United
States Treasurer and pay off her State
debt and advance the balance to her
citizens on their property properly re-
stricted and secured these notes would
be based On $l6s,0o0,OOO of property
and endorsed by the United States,
whose wealth is increasing at the rate
of $3.50, 900, ,0O0a a month. The security
would be perfect. We would then have
our distinctive money, which every ma
ton should have. In that event we
would not suffer from any diaster that
might befall any other nation.
| It is estimated that the shrinkage in
values in the United States caused by
the suspension of Barring Brothers
was $1,000, 100000.
This is one of the results of the pre-
sent financial system.
| We are too closely allied in our fin
ances with England. To illustrate, sup
pose there were two mill ponds run-
ming parallel without communication.
II q log was thrown into one Of them
it would displace the water where it
falls in and every atom of water in that
pound would be displaced one atom
by another. The water in the other
pond would not be disturbed. It
would remain placid.
The State treasures in addition to
furnishing all the money needed for
business at low rate Of interest would
be safe repositories for the General
Government.
: The deposits would not be loaned out
as is now done by the banks. They
would be held until called for; hence
there would be no hazard. All gold and
silver would be put into bars and used
as commodities, the holders paying all
costs. The products of the fields and
mills should be on the same footing
with the products Of the mines. There
should be no difference.
In 1912 James H. Hammond, plan
ter Of vast erudition was elected Gov
ernor Of the State. Cotton was selling
at 4 cents per pound. In speech to