Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1892-06-09
State Bank Circulation.

7 Langley, S. G.
State Bank Circulation.
A little while ago The Worl,
: presented for the first time al
J outline of the plan for restoring
state bank currency and the con
siderations in favor of tn
proposal.
The discussion thus begun ha
drawn from no less conservative,
and authoritative a source thar
the Financial Chronicle an elab
crate article in support of tht
movement. The reasoning il
substantially that already
employed by The World, but some
points of Importance are added.
The restoration of a State bank
currency would go far to satisfy
the discomfort which has
hitherto found expression in free
silver advocacy. 1t would give to
the agricultural regions an
Increased access to money in
time of need, in the shape of
a responsive currency. 1t would
create currency with natural
tendency to stay at home, while
the natural tendency of all the
forms of currency now in use is to
concentrate itself, when not
actively employed, in the great
great money centres, there to
become more or less permanently
entangled in speculation, leaving
the country without it at times.of
special need.
The Chronicle sums it up in
this compact way:
"First, as we have seen, the
tendency of these bank notes will
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Grola =. ST.: ee &c stay
vt'6a r. State o taslr issue
:: f,,;, .-:.".,..et>...:s:.e fhav ,e;l.
diGer, az Aes beer shom91. fro,n
every "aneg anta s.ow; IN sAistooc@
Second, sho9 out y ps,s
tney -! 9 ,.so The bank tes
redemption and not accumulate
at Chicago or New York to breed
unhealthy speculative ventures,
Third, they will always be on hand
to move the crops becausethey will
lodge at home; so when dealer
in grain wishes to have currency
for making a purchase in the
interior he will 60 to the local
bank, get his discount, take the
proceeds in tie banks notes,
perfect his proposed arrangement,
ship his grain, draw on New York,
say for the value..of the grain, and
when the draft is paid take up his
paper discounted by the local
bank, and SO the local bank is in
funds again to redeem its notes
as they may come back to it.
These few words could be
greatly extended, but they outline
the character and working of the
note system of there in
stitutions. We will simply add
that the people Of each locality
ought to be the ownersin part at
least Of their own banks and ought
to see that legislation be SO shaped
as to make the banks profitable; /;
in this way the growth in banking
capital and in circulation would
always keep pace with the growth
of wealth in each neighborhood.
Thus, too, this issue of.notes would
be made limitless."
Under certain general provisions
which, as The Chronicle points
out. Congress might enact as the
.ondition of exemdtion from
taxation on note issues, the system
would become a powerful agent
sor the protection of the gold
reserve from foreign drain and at
5he same time minister largely
md wholesomely to the more
extended use of the silver coins
low idle in the Treasury vaults.
The project is one which
leseves the most earnest and
candid consideration. 1t offers
olain road out of difficulties from
which no other safe exit has been
'ound by long and diligent
!earch-New York World.
live had no religious scruples
bo,,f r,,p,,,,,, wall 4..sx -. c.