The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1892-09-15

centres, more people would go in.
: Banking, and rates of interest woul
be lower but as it is, our money /.
to be sent to those money centre
and helps to swell their already ov,
crowded Golfers, and this will CO.
tlnue to be the case until we have a
STATE BANKING SYSTEM OF our OwN
A suggestion of this kind at on,
calls up to our recollection the owl,
Cat Banking" before the war. br-
the science of finance is better under
stood now than in those days and
can manage such matters with muc,
more intelligence; and our condition
are very different now. Says Pres
dent Coe: sin earlier days when tn
distant portions Of our vast area
country were impericctly connected
currency instruments were emitted i
remote and inaccessible places O,
purpose to avoid redemption. The
deservedly received the contemptuou.
names that marked the public opinion
of them, names yet remembered onl
to be indlscriminately applied t.
every form Of corporate currency. Bu,
they were relatively few in number
and under changed conditions o.
travel and intercourse, may now b,
easily prevented. In the older States
most of the Banking systems existing
before the war, were worthy Of tn,
highest praise. Notes of Banks in the
Union States were redeemed withou,
loss. Their methods of business were
not only substantially sound, but in
its supreme moment the Government
itself found in them its refuge and
support and almost its salvation. Now
that commercial currency and trade
have SO long since resumed their
healthful operations, and the necessity
for flexible commercial currency is
everywhere recognized, is it not time
that the Government should relinquish
a system born of war, be relieved from
the exclusive domination of financial
affairs, for which it has neither aptitude
nor attribute, and that commercial
policy be re- established, such as ex-
perience Of older nations has approved,
and such as our own people impera-
lively demand?"
Says the editor of the New York
Journal Of Commerce: "There need
be no fear of any toleration of
State Bank note circula-
ton. There is not State in the
Union which would authorize or allow
it; and if it were attempted anywhere,
the facilities for collection are now
SO great that it would be crushed out
at once The chief advantages that
would follow the repeal Of the tax on
State Bank issues has been summed up
by the above paper as follows:
"Flexible in its character, redeem
able at all central points, and thus
always at par throughout every portion
Of the country, and meeting the need
Of the hour, in its answer to every
legitimate demand, it would prevent
pressures and stringency in the money
market, and injure no one but the
greedy spcculator, who makes his cent
per cent>in a financial crisis" The
leading financial papers Of the country
such as the Financial Chronicle, of
New York, RAoae's journal Of Bank
ing, Springfield Republican, and
many OF the prominent Bankers and
financiers of the Nation advocate the
repeal of the tax on State Bank issues,
and we are justified in the opinion it
is only question of time, possibly at
The next session of Congress, when such
4 law will be passed. This, however,
will not be panacea for all our ills.
had occasion at this place a month
since to give some reasons, why we as
l State are poor, and to suggest a
Why THERE Is A SCARCITY OF MONEY
IN THE SOUTH.
Not to repeat what then was said,
will quote from an editorial in the
Baltimore Sun along the same line:
''In the South and West the farmers
eel and know that something is wrong
out they do not seem to be able to
zee just what the trouble is. They
Know very well that cash is scarce
With them, and that when they desire
o borrow, interest is high. Many of
hem have come to the conclusion
hat the cause of their difficulties is
carcity Of the circulating medium.
md hence they are clamoring for an
Unlimited issue Of light weight silver
lollars. \ glance at the bank state
nents Of the country shows that these
liver intlationists are wide Of the
mark in their diagnosis. In New
/ ork money is so abundant that it is
,oing begging at the lowest rates Of
interest. and yet there is more demand
or it in New York than in other
places. Some Of the rural banks of
Maryland have sent hundreds of thou
ands of dollars to New York on de-
,osit for the two or three per cent.
ear that is allowed for it. Most of
he banks Of Maryland have more
currency than they know what to do
With. and all the commercial centres
IRE congested. What, then. is the
:ause Of the scarcity in the West and
south: More currency. proportion
ltely. is needed in these rural com
than in the East because there
Ill payments are made in casIi. whilst
lere the great majority Of debts are
paid by bank checks. And yet they
cannot keep their currency. 1t is all
Trained toward New York or some
,ther city. The reason is that what is
usually called the balance Of trade
IS against these communities. They
buy more than they sell and have to
pay the difference in cash. If man