The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1892-11-04
UNION c. H., CAROLYN W. NOVEMBER 1892
ALLIANCE DEPARTMENT.
State Banks Discussed by President
LOucks.

otuIo Douhb DlSCuSS6u Uy fr6Slu6HI
LOucks.
There arc Three Vital Objections to
Such Q Monetary System.
[By H. L. Loucks, President of F. A.
and ]. u
Pushing financial reform to the front
has compelled our Democratic friends,
even in the South, to pay more attention
to this important issue. In the several
Democratic speeches we have heard, it is
true most of the time has been devoted
TO the defunct force bill and personal
i,abuse of WeaverSet. al Col. Livingston
Eaaetta -6rat wa. .heasd -dixcnss the .fpance
quSsti0ny una strange asSit may appear to
our friends, this erstwhilc great cham
pion of the subtrcasury forgot ali about it
and gave us something b,tter" of the
Democratic party, viz, State banks of
issue. What are the advantages claimed
for State banks2
First, Immediate relief. Col. Living
ston stated that the Georgia railroad was
ready, just as soon as the 10 per cent tax
was abolished, to issue 81, 500, 900. This,
to us, was new phrase of the program
To the already tremendous power con-
ferred on our railroad corporations, to
tax us all the traffic will bear on the
exchange of our products, is to be added
the privilege of the control Of our me-
dunn of exchange, well 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 it2
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-
vate corporation on its credit better than
money issued by tho general Government
on the credit, not only of all the Sc priv
ate corporations, but all the other wealth
of the nation, as well? Certainly not.
The vital objections to this plan is that
it would add enormously to the great
and alrcaiy dangerous power possessed
by the railroad corpora ions of tho nation
at the present time, which is practically
| controlled by less than dozen men,
BY others the induccmcnt is plausibly
held ou, that "under State bank system
| any number of farmers could form a
| joint stock company and by issuing their
notes secure supply Of moGcy which
could pass current in all business trans.
| actions"
We can rest assured that when such
plan is formula ed it will be surrounded
by so many safeguards as to leave the
farmer out They would require, and
rigltly, too, unencumbcrcd real estate
Ststhe present trno--1-sss --..iIh farmers at
out as a it to catch gudgeons. n
could not be made legal tender and
would have but limited circulation
We demand national currency. a full
legal tender, wherever presented. Pres
idcut Harrison, in his letter of accep
| tancc, aptly describes the result by re-
| atng history under such system in
our own country. "The denomination
of bill then was no indication of its
value. Merchants deposited several
times during the day lest the hour of
bank closing should show depreciation
of the money taken in the morning. The
traveller could not uc. in journey to
the East, the issues Of the most solvent
banks of the West, and in consequence a
money changers Office was the familiar
ncighbor of the ticket Office and lunch
counter. The farmer and laborcr fouut
| the money received for their products ol
|
to make their purchases and the Who'll,
business of the country was hindered ant
burdened."
We would soon find that the Stat,
banks by farmers, through dscrimiu
alton would, like our warehouse ant
other co operative companies, be crowded
| out.
"Further advantages would be found
in the ease with which money could be
borrowed on the security of real estate
thus rcmedying one of the principa
grievances of which the farmer com
plains" Even though that grievance
should be removed, there are still three
vital objections.
/. These issues would not be lcga
tender.
g. 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 ne eded to move the crops
Twill disappear" Our subtreasury plal
provides f''r-sAat in q much more salts
factory manner by Ieavfnys seho-e.t,ansiol
to the producers of the wealth to be cx
changed, and not to spectators inter
ested in cheap products.
"lnstcad OF accumuating IN New
York, Chicago, or other large cities, th
tendency Of State bank notes will b
towards remaining at home, ready at nj
times for every commercial purpose
Why the tendency t. remsin at home
, Simply because of its questionable valu
away from home. Do you want to eS
I change your labor, or the product c
1 your labor, for such money! We dt
8 mand a national currency, safe, SCUM
a and flexible In no particular will Stat
banks fill the bill.
@ "The rat, S of interest, now so ofte
{ the chief obstacle in the way of the in
es'mcnt, by the farmer, of more capitt
, IN his business in the shape Of bette
i ;.,n,xr,,ynI onh;po,u ht,ill