The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1892-09-08
STATE BANKS OF ISSUE.
A Well Informed Man Expresses
Himself on the Subject - An
Interesting Interview With
Maj. W. T. Sutherlin, Of Dan
vile. Va.

Interesting Interview With
Maj. W. T. Sutherlin, Of Dan
vile, Va.
The Danville Register has inter-
viewed Mai. w. T. Sutherlin, an in
telligent and we'll informed gentleman
who is thoroughly posted on public
matters generally, and obtained his
views on the subject of State banks of
issue. His connection with and knowl-
edge Of such institutions as conducted
previous to the war, qualities him to
speak advisedly, and what he says will
be Of interest to our readers. Maj. |
Sutherlin believes that currency |
issued by State banks and redeemable
in currency, would bring prosperity to
the farming districts as we'll as all
classes of our people. This is along
the line Of policy proposed by the
Democratic party, when it declares in
its national platform for the repeal of
the ten per cent. tax on State banks,
by which these institutions were driven
out of existence, and the resolution
offered by Col. Burgwyn and adopted
by the Democratic county convention
of Vance. Following is the article in
question taken from the Register:
! Major w. 7. Sutherlin is one OF the
few living Virginians who were presidents
. of State banks of issue before the war
He is the only man in Danville who held
such position and for that reason the
Register sought an interview with him
on that plank in the Democratic plat
form which demands the repeal of the tax
on State banks. The interview is as
follows:
'Much has been said of late of the
dissatisfaction among the farmers Of the
country with the condition Of things. To
what cause do you attribute this dissat-
isfaction?''
"To the great scarcity of money, the
cost and difficulty OF getting it, and the
low prices of farm products, and the
difficulty in utilizing any property they
have to aid them in the battle for exist
ence The chief demand Of the Alliance
and the Third party people is for more
money. They know that the northern
or manufacturing States have much
larger circulation per capita than the
agricultural States. 1t is claimed, for
example, that the circulation in Massa
chsetts is $500 per capita and in Penn
sylvania more than 5000, while in Vir
ginia it is only Sill, in Texas only ST.
and so on"
"Do you think that there is ground for
/ these complaints?"
81 do, and see no way of relief under
, the present financial system of the gov,
! relief under the plan of the Third party for
the unlimited use of greenbacks. Even
if this money should pass current, the
farmers would still have the same diff
ticulty OF securing it that they now have
/ as it could never be recognized as pru
dent or wise for the government to ISSUE
Or loan it direct to the people,
''Do you know of remedy for these
evils and can you suggest any measure
of relief?'
81 believe do, and my opinion is that
it is provided for in the national Demo
| cratic platform of 1892 | refer to that
, plank which demands the repeal of the
. tax on State banks
: ''This question has, up to the presen
time, attracted little attention. Have
you given it your consideration
II have for many years given it most
careful consideration and as long ago as
ten or fifteen years wrote articles On the
subject for publication in newspapers OF
Virginia and North Carolina, and anti
/ ipated that the time would come when
the public woudregardi it as a necessary
measure.'
Glow and for what purpose was this
tax originally levied?''
at was established as a war measure
to prevent any competition with the
!, national banks and greenbacks OF the
government as a circulating medium
1t is a part of the act creating the ma
tional bank system and gives these
banks a monopoly of the circulating
medium except as to money issued
directly by the government. This re.
calls to my mind repeated conversations
had soon after the war with the late
Chief Justice Chase, the father of the
national bank system. In referring to
the subject he said that the national
banks were established as a war mea sure
to aid in furnishing circulating me
dunn and other financial assistance to
the government in the prosecution of the
war. The notes being issued on govern.
ment bonds created at once a large
market for the bonds and made every
man who held note interested in the
success of the war. He said that the
system was entirely unsuited to time
OF peace, and if not changed must foster
and encourage monopolies, and might
be used so as to put enormous wealth il,
the hands of corporations and individ-
uals, greatly to the injury OF the general
industrial interests and people of the
country. | think it is generally recog-
nized that his predictions have we'll nigh
1come to pass. He said that there was
one feature that would probably cause
the system to last longer than it other
wise would, and that was that it
furnished currency that was current all
over the United States and while that
feature was desirable, it would not com
pensate for it's great injury to the people
at large"
"How would the repeal of this tax on
circulation remedy theevils to which you
have referred?'
st would remove the manacles that
bind the States and the people to this
system of finance and open up the way
by which each State might adopt some
SAFE ana SOunu system OF banking that
would furnish a circulating medium re-
deemable in coin that would be received
by the State in payment of taxes, pay
the debts of the people and buy what
ever they wanted in the State''
DO you think that this would be a
safe banking system?''
Il see no reason why it should not be,
if the banks were required to redeem
their circulation in specie and were also
required by law to keep within proper
bounds, both as to circulation and dis
count
You speak confidently. Have YOU
ever had any experience with State
banks of ISSUE"
Il was for many years before the war
closely identified in interest tn Vir-
glnla banks OF issue and part OF the time
| a director in one of these banks. Sc
cured charter from the legislature and
established a bank in Danville with a