The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-02-18

OF congress and by capitalists. Besides,
loans on even approved securities are by
custom limited TO ninety days-just about
the time required for gamble In futures,
but not long enough for q producer Of wealth
to lay the foundation of an enterprise before
ne must re,urn the loan But my space is
very short. must proceed.
My third proposition Is TO make the dis
trlbution permanent; that is. to prevent
absorption by Wall street. have been told
by some they consider that result impossi-
bic. 1t Is as easily done as to add a column
Of figures. 1t can BE- effected by each state
being the creditor and lending
the notes thus distributed. /
will exemplify by taking one state,
Georgia. First. the legislature establishes
a low rate OF interest; SEQ
ond, bureau of finance to
lend the notes and to conduct all bust
ness incident 20 the loans; third, the leg
islature designates the classes Of securities to
be taken by the state and the percentage to be
lent In each class-land to be one class;
and, fourth, the time a loan may run-the
use TO which the money is TO be applied
being factor in fixing the time. For in
stance, a loan intended for establishing a
factory, OF similar industry, should be on
long time for reasons so obvious they need
not be stated.
The interest should be payable yearly or
yOuiAJg hu0 bC appiloQ hS LQo k6Ri6ld-
tu.e may direct; for instance, TO reduction
Of the states debt; TO the educational fund :;
to defray civil expenses and thus diminish
the rate OF taxation: TO establishment OF an
efficient bureau of immigration.
But the method OF using the treasury
notes is a matter of detail that must be de-
cided by each state for itself. Whether a
state may lend, or issue, the notes to banks
to lend or do both, is a minor considera-
tiOn N hat / nfafv to hok !
the state will make the distribution psrma-
nent, because, the state being the creditor,
the principal and interest go to the state
when a loan natures. and, therefore, the
volume OF circulation in that state remains
a fixed quantity.
will now capitulate some of the results
and advantages which this financial system
would produce.
l. It would give a national currency of
greater security than any other on the
earth.
2 1t would have the only feature Of our
present national bank currency that is
really valuable, and which makes it far
better than the old currency OF state banks.
B. 1t would be financial system, federal in
its origin and strength aud state in it's
operation.
I. 1t would be in the line of states rights
and of home rule.
manent establishment of low rate of in
terest throughout the United States.
9. 1t would supersede the law forbiddinR
loans on real estate by national banks.
z. 1t would restore real estate as Sc
curity, to its rightful equality and dignity.
8. 1t would place every citizen of state
on the same PLANE of equality as a borrower.
9. 1t would enable every citizen who has
property to be developed, to get money on
easy terms, at living interest and on long
time.
10. 1t would stimulate the development
of all the resources of every state
IL. 1t would add rapidly and immensely to
the wealth Of every state, but especially to
the southern and western states. whose nat
ural wealth lies dormant for want Of money
to bring it out.
II. 1t would at once, and as long as the
system should continue. destroy the par
alyzing domination of Wall street over the
whole country. AS this result may be
doubted, will explain that each state would
be to its own citizens what Wall street
now is TO the United States-the lender and
creditor. Now. Wall street can, at the
word, make money stringent in every
square mile in the union. Then, Wall
street could not affect the money market
outside the state of New York.
Is. 1t would enable each state to develop
its natural resources
IA. Each state could prevent spectators
: from depressing prices of its peculiar prod
ucts, by making loans on those products.
1t would educate the people Of every
state In finance. as every legislature would
have to conduct the finances of the state and
be held responsible for Losses sustained by
the state through loans improvidently
made.
10. 1t would entail no loss whatever in the
federal government. even though state
should lose by bad debts.
II. Itwould enable every state to pay off its
bonded debt and, finally, to abolish state
taxes, because borrowers from the state
would, by paying interest, take the place Of
taxpayers.
Is. 1t would multiply enterprises and In
dustries so rapidly that all men willing to
work, could have employment, and
10. 1t would thus reduce want. poverty
and crime.
20. 1t would ultimately re-establish the
equilibrium Of wealth among the sections
of our union which is now threatened with
horrors unimaginable from the
deadly thunderbolt that spring from
those repeiant Econditions of society,"
its positive and negative poles-extrene
poverty of the multitude and extreme riches
of the few. No free government has ever
survived that condition, and ours is ap-
preaching it with the increasing velocity of
falling body.
81. 1t would bring lender and borrower
into intimate acquaintance, sympathy and
confidence. A gap of one or two thousand
miles las at presently between the lender and
borrower makes capital distrustful. timid
and almost unattainable Hence, bills
ions Of dollars are now banked up
in the eastern states, and the shrinkage in
the value of property in the United States,
caused by that timidity of capital, since the
suspension Of but one business house-Bar'
ing Bros-exceeds $l2 ,000, 100000. This
is the direct consequence OF a national
financial system controlled by few men at
one central point-Wall street. Ii the
financial system herein so imperfeotly I'M
folded from lack of space. had been in op-
GRAFTON in 1890, is it not clear to every re-
fectiDg mind, that no stringency in money
could have occurred in the United States,
and that we would have been saved from
that shrinkage in values and from the men,
tai strain and suffering of the last eighteen
monthsl h.,
The truth is, our independence of '76 was
incsmplete We shook off the royal crown
of gems to remain the subjects OF the Brit
ish crown of gold. We are still the vassals
of pounds, shillings and pence. The British
banker is kiDg-Our king. We have deified
British money, and we bow down and wor-
ship 1t as our only savior. When parliament
demonetized silver congress obeyed and de-
monetized silver. We banished it from the
realm Of coin to the region of commerce,
for England to put her own price on it and
TO use il as coin In India, to stimulate the
production of cotton, wheat and rice in