Middletown transcript., 1892-09-29
STATE BANKS.
JAMES A. B. DILwoRTH.

apology to the people, both saw tit to
speak with considerable emphasis OF
the free banking plank in the Demo.
cratic party. That objection to free
banking, or to a restriction of the
monopoly OF the national bank, seems
to rest solely upon the theory that the
money issued by free banks will prove
to be inconvenient money to travel
WITH. The fact is, that the great ma
jority of the American people do not
travel far enough from their own home
to carry bank bill beyond its range
of face value, if it is worth its face
value at home. If they lived in the
immediate vicinity of the bank, and
the bank bills were not at par, it
would be because the managers of the
band had not inspired the people liv-
ing within the vicinity of the bank,
who knew them we'll, with sufficient
confidence to BE- implicitly trusted.
Such banks could not circulate their
bills, because the people would not
have them.
If the State bank, or the free bank
| would stimulate business In it's imme-
diate neighborhood, the amount of the
benefit derived from that stimulation,
would unquestionably be infinitely
more profitable, than would be the
loss from the inconvenience arising
from the State bank notes, as con-
venience with which 10 travel. More
than twenty years ago, when writing
upon this same subject for morning
daily of New York City, I said: sis
it net we'll that our people should ex-
anime more closely the cause which
produced the rapid development o.
our wealth as country before the
commencement of the War, and COM
pare that cause with the present ruin
GUS management of the finances and
affairs of the government2" After re-
viewing the history of the past twenty
years, or the period since l penned
that inquiry, am fully prepared te
indorse the assertion it contains, ano
ask the question anew.
1t is not necessary to enter into any
argument to prove the necessity fol
the use of paper money. Business
could be conducted to an extent ye1
unheard of, or managed without 9
single coin, or without a currency
based upon the value of coin. Aftel
all, coin values fuctuate, and. th'
cause of that fuctuation is the supply
and demand of the precious metals.
A secretary of the Treasury of th'
United States. shortly after the dis
covery of the immense gold fields O
California, in serious public paper
addressed to the President of tht
United States, expressed alarm be.
cause of a calamity that was likely t.
fell upon the country from the CHEAP
gold from the new mines, driving
silver out of the country.
Less than a quarter Of a century
later, another secretary of the Treas
ury addressed similar communica
ton to the President, in which he de-
plores the calamity that is likely tt
fall upon the country from cheaE
silver, depicting the country Of gold
The fact is, that neither gold MOI
silver is essential to the successful con
duct of the business of the country.
Business is conducted now, not by
mans faith in the value of coin, bu
by mans faith in his fellow man. 4
business man of to-day trusts hii
fellow man, not because that man ha'
gold, but because he has business ane
personal integrity. Mans faith in hi
| fellow man is the foundation upon
which business rests to-day, anc
checks, bank notes. and promises tt
pay, are all essentially necessary Il
make the wheels of business rur
smoothly.
The country bank under the presen
system, does not afford to the farme
any accommodation whatever, excepI
when money is cheap. In straight
ened financial times, when the farmer
needs financial bridging over as wei
as the merchant, he can get but very
little assistance from the bank, an(
the reason of it is very clear. Th'
circulating medium is gathered to th'
money centres as soon as there be
comes any stringency in the none.
market, and however firm the banl
officers faith may be in the busines
tact and personal integrity of tn
country farmer, or the country mer.
chant, it is not within their power t.
loan him money, because the deman'
for it from the money centres has ex
hausted the supply of bank bills from
their bank TO the lowest point whicl
it is possible for the banks to reacl
and live.
II have heard the argument ad
duced that We would keep the none.
at home if state banks were instituted
| But we should keep it at home be
cause it would be worthless, that no
body would take it abroad" write
Mr., Blaine in his recent letter to th