Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-07-20
state-Bank Circulation.

The Atlanta Constitution, much to our
surprise. seems TO advocate the PROPOSE.
ton to do away with the present system
of issuing notes of circulation and to be in
favor OF return to the old State bank
system. That paper says:
"The editor OF The RICHMOND DISPATCH Is a
level-headed man, AID we are convinced that
whom he has discussed the question Of State
banks Of issue In all its bearings he win modify
his opposition, II not his views.'
We shall see. We are open to con-
viction. whether we deserve the Consiit,s-
TONS compliment or not. At the same
time we may be allowed TO say that we
consider ourselves reasonably we'll ac-
quainted with what the Constitution styles
the New York system of banking. having
been familiar with that system when it
was in operation IN Virginia.
We have objected 10 any system under
which the several States would each have
local currency of its own in bad repute
hundred miles from home, and always at
discount in the money centres. The Constitti-
ton seems to regard currency of that sort
as the one thing needed in the impover-
ished South. II the arguments for such
system are tenable gold and silver coins
should be discarded, seeing that they are
as current in Maine as in Californian
Virginia as in New York city. Under the
present banking system, which, its friends
claim. works automatically. feasibility is
provided for.
We suggest that it might be well for
Georgia to try the experiment of relying
upon local currency and give the other
States an opportunity of learning from the
experience of that State the advantages
and disadvantage of the proposed system.
The Raleigh Ne,os and Observer suggested
the other day that the discussion of fnan-
cial questions should be left to financial
experts. The Constitution would call for no
aid from these experts. 1t says:
1--WE have no idea that the people will be al
lowed 70 control their own currency for many
years. They have permitted Wall street and
the financial interests 10 entrench themselves in
power, and II will require the agitation OF seve-
raj campaigns TO dislodge them. Yet II they
are ever TO be dislodGcd the agitation will have
20 begin some time, and we 90 not know more
suspicious hour than the present"
Yes. it will require the agitation of sever
al campaigns to dislodge the present plan
OF putting out circulating notes. Sup
posing the proposed system TO come IN
competition with the present, and each
State provide for local currency whose
"invariable tendency would be in the di-
rection of home" we would expect every
State to prefer the existing system. We
tell the Constitution that that condition of
things obtained in Virginia before the war
between the States began. The Bank of
Philippi and the Fairmont Bank. for ex-
ample. we're located upon the Baltimore
and Ohio railroad and had correspondents
in Baltimore. These banks issued circu-
lating notes based upon State bonds.
They were in fact Just such banks
as the Constitution proposes to substitute
for the existing banks. And yet their
notes were always at discount in Balti-
more. Negotiable notes were often by
those banks made payable in Baltimore in
stead of at home. These banks thus &C.
cured the regular interest upon the notes
discounted by them aud in addition there
TO the premium which the notes of Bal
timore bank invariably commanded over
the notes of banks issuing local curren-
CIV "whose tendency was always towards
home"
Yes, if each of the several States re-
sort TO the New York system we shall
have forty-four different systems of bank
ing and forty-four kinds of currency.
which we shall be constantly engaged in
sending back 10 tho States whence they
came.