The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1892-11-04

ALLIANCE DEPARTMENT,
State Banks Discussed by President
LOucks. ,&.. \.
There arc Three vital Objections 70
reeaA . Monetary eyssem. =
f-- - s,s5>
IBy II, Z. Loucks, President of +. "A.
sndL u. IS
Pushing financial reform to the front
has compelled our Democratic friends,
even In the South, to pay more attention
! 70 this important issue. In tho several
Democratic speeches We hAse heard, It is
true most Of the time has been devoted
20 the defunct force bin and personal
l-ebuse Of Weayerfet. al Col. Livingston
t|1e ssak - 49, p : isans. /. Tho anAhe.
our friends, this erstwhilc great cham
pion OF the subtrcasury forgot all about il
Democratic party, viz, State banks Of
for State banks2
tSlici WI NlHP
ston stated that the Georgia railroad was
ready, just as soon as the 10 per cent. tax
was abolished, to issue 81, 100000. This,
to us, was new phrase of the program
To the already tremendous power con-
ferred Oh our railroad corporations, to
tax us all the traffic will bear on the
exchange of our products, is to he added
the privilege of tho control of our me-
dunn Of exchange, we'll knowing, as they
must. that "whoever controls the money
of the nation controls all industry Of the
nation" If this is not centralizing power,
what is it9
Who will doubt but that every rail.
road company in the nation will gladly
issue millions of dollars of money TO pay
their help, construct new lines, etc, none
of which, mark you, can be made legal
tender, for Congress has wisely reserved
that power. Is money issued by pri-
vatc corporation on its credit better than
money issued by tho general Government
on the credit, not only of all tn, Sc priv.
ate corporations, but all the other wealth
of the nation, us well? Certainly not.
The vital objections to this plan is that
it would add enormously to the great
and alrcaty dangerous power possessed
by the railroad corpora ions of the nation
at the present time, which is practically
controlled by less than dozen men.
BY others the induCcmcnt is plausibly
held ouf that 'uudcr II State bank system
any number of farmers could form n
joint stock company and by issuing their
notes secure supply of moIcy which
could pass current in all business trans.
actions"
VIC can rest assured that when such
a plan is formula ed it will be surrounded
by so many safeguards as to leave the
farmer out. They would require, and
tsss ftisstIK bfKestG9 ttnG2 mnencumbered real estate
| out as a b it to catch gudgcOns. II
would have but limited circulation.
We demand II national currency. a full
legal tender, wherever presented. Pres
idcut Harrison, in his letter of accep
tancc, aptly describes the result by re-
y ating history under such system in
| our own country "The denomination
| of a bill then was no indication of its
value. Merchants deposited several
times during the day lest the hour of
bank closing should show a depreciation
| of the money taken i'm the morning. The
traveller could not c, in journey to
the East, the issues OF the most solvent
banks of the West, and in consequence Il
money changers Office was the familiar
| nciChbor of tho ticket Office and lunch
counter. The farmer and iabotcr found
the money received for their products ol
their labor deprecated when they came
to make their purchases and the whole
business of the country was hindcrcd ant
burdcncd."
We would soon find that the State
banks by farmers, through discrimiu
alton would, like our warehouse and
other CO operative companies, be crowded
out.
"Further advantages would be found
in the ease with which money could bo
borrowed on the security of real estate,
thus rcmcdying one of the principa
grievances of which the farmer com
plains" Even though that grievance
should he removed, there arc still three
vital objections.
1. These issues would not be a lcga
tender.
O. 1t would still leave the power OF con
traction and expansion in the hands o
private corporations.
3 All interest accruing on the use o.
this public necessity would go into tn
tills Of private corporations instead o
the public treasury.
Then, too, the difficulty of obtaining
enough money at certain seasons of TN
year, when il needed to move the crops
will disappear" Our subtreasury plal
provides Tor thnt in much more salts
factory manner, by lcaving'the expansion
to the producers Of the wealth to be cx-
changed. and not to spectators inter
ested in cheap products
"Instcad OF accumulating In New
York, Chicago, or other large cities, th'
tendency of State bank notes will b.
towards remaining at home, ready at nj
time, for every commercial purpose
Why the tendency t. remsin at home
Simply because of its questionable valu
away from home. Do You want to cx
change your labor, or the rrodk& o
! your labor, for such a money? Ne dc
mand national currency, safe, soun'
a and flexible. In no particular will Stat
banks fill the bill.
@ "Thc rat of interest, now SO oftc
> | the chief obs acle in the way of the in