Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1892-12-21

tic machine, run by tue gONeiuuleH'
interes of the capitalists owning The BANKS.
The following extract from The report OF
the Secretary of the Treasury shows the
proportion of bank notes to the volume OF
paper money in circulation Nov. lSt' 1877
Gold certificates $40, $50, 349
Silver certihcates.. &C. 900
Treasury notes Ia 1oo ~ 90
United states notes.. -
Currency certificates, Juno s. lSI2 lO,ooo,V ~
National bank notes ................'''
The question which now presents itself Is
From what source shall the currency come.
Shall it be from the National banks, by al
lowinp:them to use other bonds than those
of the government, thus making the system
more profitable to the banks? Or from the
continued issue of silver certificates, which
would tend towards silver basis Or from
an unlimited issue of treasury notes without
the gold TO back them?
1t is not probable that Congress will rely
upon either of these sources, but will re-
mand to the State banks their right to issue
notes, subject only to State control.
The principal objection urged against
State banks is that their notes would not be
well secured. The comptroller of the cur
rency says in his last report: IF happily
the time arrives when the U. S. government
has no bonded debt, or not sufficient to be
available as a basis for circulation, there
will, of necessity be other choice securities
available for such purposes"
The State bank notes would have the
same security as is now proposed for those
of the National banks, viz: Bonds selected
by the banks, subject to the approval of
State board, and deposited with the treasu'
rers of the States as security for their re-
demption. These banks were in excellent
condition and furnished good circulation
when stopped, as already stated. Many o
them became National banks. Some o
these have given up their charters and be
come again State banks; and it is not prob
able that with their experience under boti
systems, and with the progress of thirty
years, they would adopt note circulation
which would not be well secured
Another objection made is that the notes
would not circulate freely far from the 10
calities in which the banks should be loca
ted. 1t, is not expected nor desired tina
they should Their purpose would be t.
supply local currency. Persons going t.
a distance would use the National currency
Mr.. Webster is quoted as having lid, =
currency emanating partly from Nationa
authority as broad in its origin as tie whole
country and partly from local banks, organ
lied as our banks now are, aud issuing pa
per for local circulation, is a better currency
for the whole people than ever before exist
ed. Each of these classes Of institutions
and each of these kinds of currency has it:
own proper use aud value" The advantage
Of such a circulation is that it would afforc
ample money for the business wants of thu
country, especially to the South and Yves
where there is a deficiency. 1t would ena
BILE the people to borrow money at lowe
rate of interest than is now exacted. TIT
rate now charged for money throughout thu
South, from Virginia to Texas is from eigh
to ten per cent. more than any Legitimate
business can afford to pay. I.