Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1892-10-13
For the Herald and Tribune.
STATE BANKS.
The Secret Out..-Isham G. Harris Di.
yulges 1t.

Inc secret Out'.-lSIam u. Harris ID.
yulges 1t.
The Democratic Convention in Chi
cago declared in favor of State banks
on the principal of State rights.
On the Sd instant Senator Harris
spoke in Fayetteville, and let out the
secret why the Democratic platform fa-
vors State banks and their paper issues
wild cat money, as we used to know
it, in preference to our present system
of National banks and their issues-the
best the world ever knew. He placed
the question as resting on the peculiar
ground of State rights, and singularly
but very appropriately said that the
right of State banking was the same as
the local right to manufacture and sell
oleomargarine and cotton seed oil lard;
bogus butter and bogus lard), and
that Congress, not having the authority
to prohibit either of the three, sought
to tax them out of existence which
he denounces as an unwarranted usur-
patton of power
There is, at least, this much truth in
Senator Harris assertion: When Con-
gress passed the law authorizing Ma
tional banks, it imposed tax of ten
per cent on State bank circulation,
knowing that such tax would drive
State bank paper out of circulation !;
and such was the result. Was it right 7
and was it for the best interest of the
whole people of the country that such
result should be reached?
Let us lcok at the question in the
light of clear and undoubted facts, for
this financial bank question is one of
the three leading issues between the
Republican and Democratic parties in
the present campaign. II the Demo-
Gratis win, down must go the system of
National banks now existing, and in
their place will spring up in all the
States, State banks, issuing just such
paper dollars as we had prior to 1860.
Now let US see what and how that
was. More than half the voters who
will cast their ballots next November
can remember the truth of what say.
Then the paper of the best banks of the
State, if carried to another State was
shaved at least one and half per cent.
That is, for use in another State or in
exchange for other State papers; 300
was worth but S9S so. Or ii a check
was wanted for use in Philadelphia,
New York or Boston, one and half
per cent. was charged for it. Now, our
National bank paper is good alike in
all the States for full 100 cents to the
dollar and if you desire to use check
in lieu of bills, one fourth. of one per
cent is charged for the trouble to ex-
change accounts.
Do these little per cent figures look
so small as not to amount to much :?
Let us see. The financial census shows
that in the United States actual pay
ments made each yearin business trans
actions amount to 10000, ,OOO,O 900. In
making these vast payments the same
bills are used hundreds and even thou
sands Of times each year. OF this vast
aggregate of payments it is probable
that at least ten Of the thirty thousand
millions of dollars are made across
State lines, 80 as to subject the one
making payments, if in old State bank
times, to one and half per cent. ex-
change. On the $40 1000. 900, 900 one and
half per cent amounts to $3.50, ,OOO,-
600. Under National banking usage
the one fourth of one per cent. charged
amounts to but S25,0OO, ,0O0-a differ
ence of S125, 100000. This last amount,
at least, would be the first and least ex-
pensive loss the people would suffer by
exchanging our present admirable Ma
tional banking system for Senator Har.
ris' Democratic oleomargarine-bogus-
lard State banks And note this fact
the 1926, 100000 referred to is an aver.
age of just little over two dollars
(loss) to every man, woman and child
in the entire country.
But, as said, this percentage loss,