The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1892-10-04


nurs -, IN good health Now, the tion is
was his escape from the pestilence1EAe to hi
incubation with cholera virus?
Daniei Webster on State Banks
Many years ago Daniel Webster do
clared that "a currency emanating partly
from q national authority us broad in its
origin as the whole country and Dartlv
from local banks, organized as our banks
now are, and issuing paper for local cir
culauOn, Is better currency for tho
whole people than ever before existed
Each OF these classes of institutions and
each OF these kinds of currency has its
/ own proper use and value"
1hls applies with much greater force
now that we have q. national BANKING.
| system based upon government bonds
| when must necessarily be retired in tba
course OF a few years. Again. it world
seeh 10 Dc only simple justice to give
communities Which do not own govern
meht bonds chance to establish local
banks with the power to issue wel,-eocnr
ed notes subject to efficient insnoctio,,
For the benefit of MANY readers Who
oeslre u brlef and comprehensive sum-
mary or the state and national BANKING
quesuon, we reproduce the FOLLOWING
from The Baltimore Sun:
Inc bank OF North America and the porL
VI massachusetts existed before the fadornI
CONSTITUTION was formed, and tbere 10 ~
limitation placed by the constitution nnon +ho
power or the states to grant charters to 60
pahhs Ii was SO held by the supreme cour,
III the case or BriscOe VS. the Bank of Ken
lucky mat decision declared the power r.
chafter banks belonged to the states as IN
incident of sovereignty The democrati. ,
", as the defender Of the reserved ripbts nr
the states has long favored = reduction, 81 -
TAX Oh ~ per cent. upon the notes of the stare
Danhs, imposed by the act of March 8 1SG5
ana reimposed by the act of July / 1sgc
ne opJect Oh the tax of 10 per cent was to
compel the state banks to buv t,overnr1on.
oohdS ana become national banks, since tho
ownership Of gov. rnment bonds is WY
requisite to the iasn, OF notes nv nationo,
p"nhs. ne purpose, in fact was to force
the withdrawal Of state bank notes Inv roolf
ule' circulation Improbable, not becauso
they were not sound currency but bocorso
Ihe conversion of state banks into national
banks would create q large demand Tor 800
eminent bonds. In the case of yoagia ,s
: emo the supreme court reversing former
leclslohs) held that congress could restrain
y us act the circulation of state bank notes
mat decision, however like other recent do
uohS' ana 1t expressly conceded the right Of
ne people to demand a return to the state
ahh system The volume of national bank
otes In circulation is by law proportionod
D the amount of government bonds held bv
le hational banks. Bonds being very high
ONE OF the national banks do not issue notes
ndlng such issue Improbable AS the M
onaI debt Is paid off the banks are compeu-
10 surrender much Of their circulation
ne Voiuihe or national bank notes is RAPIDLY
'creaslhS. On October ], 1850, there wrro
i90 national banks which held rnito1
.ai s bonds to the amount of S357 500 0o0 NO
,cE ity for their circulation and had sat-
"ooo OF Nc in circulation. On SeDtenhar
, 1911, there were 3,677 national baDks-o
rye lncrease-but their holding of bonds f.
cure circulation had fallen to $50 coo 600
~ tleIr notes in circulation were but S13l-
oooO. Evidently this is a contraction of
currency which it may be desirable TO
event If Il safe means may be found The
III Understanding debt of the United
ates on July 1, 1880, was 81, 1913 993 100.
on August 81, 1892, the total interest
rlhg debt aggregated but $3.50 03i ,0SO-a
Eat skrinkage of the basis upon which la
n"i oalk notes are based 1t is evident
IL IL government bonds continue to ba Maid
AZ anything like the rate of the last
eve years there will soon be none Of them
70 ptSe the notes upon. 1t will be borne
mind that the governments obligations ora
tie national banks. At the close of An
/ last, Tor example, there was a govern
1t debt OF 1919, 65S,574 that bore no inter-
mere were in the hands of the public
lhcates ana treasury notes to the amount
'oi"' f1o,o3O, against which the government
III It's vaults, an offset. cash to the
III amount. OF the total liabilities of the
ernment, agSregatng 81 ,5S2. 6S1 $40 but
'o"l,oSO as already stated, bears interest,"
IS, therefore, of a character to be de-
by banks as basis for circulation
nder the circumstances Mr. WebSter's
! for state banks would be a better one
~ than when he made it more than
years ago. There is less danger Of
cat banks since the states have all
ed down under regular business meth
and legislative safeguards and in
uon Will make the banks perfectly
re and trustworthy. For interstate
less greenbacks, federal treasury
5, etc, will answer, while state banks
DC very useful within the states, sup
y Il much-necded local currency,
sters idea Of Il currency partly ma
ana partly local suits this vast coun-
Hacty, and meets the requirements
III me money centerS and the remote
districts