The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-02
SHALL WE AGAIN HAVE STATE BANKS
or CIRCULATION

Thirty years ago the only paper currency
in this country was the notes Of State Banks.
Away from the home of the bank issuing il
the note was unknown, and therefore. at
discount. and the great difficulty the public
experienced with these notes was that there
was no uniformity in their value. A man
going from Richmond TO New York with
$1,000 of Virginia Bank notes in his pocket
might find when he got there that they were
worth only $500. TO concentrate all the
financial power of the country IN the hands Of
the Government for the purposes of the war
Mr. Chase. in getting up our present system
Of National Banks, imposed heavy tax upon
the issue Of notes by State banks. and the
country has. therefore, been exempt from
their good or their evil. whichever II may be,
for thirty years.
SO high an authority on finance as the Com
mercial and Financial Chronicle of New York
which may easily be termed the highest.
as well as most conservative, financial au-
thority in the United States. has recently, in a
very elaborate article, expressed itself in favor
of repeating the tax on the issue Of notes by
State Banks and another authority on such
subjects. almost as high, the New \ ork Even
ing Post, has come very near indorsing the
proposition which means. Of course. return
to currency of State Bank notes The
TIMES is not prepared TO indorse the PROPOSE
ton, but it is prepared to State what appears
10 1t as some very cOgent reasons In favor
OF it,
One fact relating TO our present National
Bank currency stares us IN the face at the
very threshold of the controversy. and that is
that il is founded on what is popularly and
very Justly termed national curse. With
out the national debt there would be no Ma
tonal Bank notes, and IA national debt is with
out doubt national curse As all prudent
people do in respect 10 their private affairs
this nation will do IN respect to its public
debt. it will pay it: indeed. is very rapidly
paying il. and when paid there will be no
more national bank currency. and we shall
have to look around for something 10 put in
its place. We are here confronted by both
theory and q condition. and that which is
theory now will soon be condition and il
must then be dealt with. IL is certain we
must find a substitute for the National Bank
notes. What shall that substitute be,
We can think of but three substitutes
coin, legal tender Gvernment notes and State
Bank issues We dismiss the idea of cur.
rency issued by such agencies as the old
United States Bank. There may have been
more good in that system than the public
thought there was. but il has been Tried and
condemned by popular verdict. and il is
doubtful If 1t can ever Re again revived.
Iherewas much in it entirely analogous to the
Bank of England. which furnishes the most
satisfactory paper currency any country ever
had. but 1t is too late 10 discuss il now.
When We consider the three substitutes
suggested we are compelled to admit that coin
is two scarce and with too strong q tendency
to bank up at money centres to answer all the
purposes of currency. There must be some
device by which the people can temporarily
utilize the credit given Thorn By their pro-