The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1892-03-03

~ ed in the House by
Hon. !. S. Henderson, of the Seventh
district of this State. If either of these
bills pass it will open the way to the
establishment of State banks, which
will furnish the people with a volume
of currency ample for the demands OF
business, and will enable people who
need money to borrow it on better
terms than they can now.
Representative NJ. D. Harter, OF
Ohio, a practical banker, and busl-
ness man interested in various indus
tries, has, after ten or twelve years OF
observation on the subject OF banks,
drafted a bill providing for a uniform
system which provides all the guaran-
tees for safety and enables the banks
to issue an amount of money, based
upon the security provided for that the
business demands of the communities
in which they are established may re-
quire.
One of the principal defects in the
present financial system is that there IS
no provision made. for the expansion
OF the currency as occasion may re-
uuire and hence there is at times ruin
Gus stringency when money Is most
needed and at other times a supera-
bundance OF money at the money cen
tres when it goes begging even at a
~f mt
tions have an over abundance while
other sections suffer for want of money
to transact the ordinary business. 1t
will be remembered that last fall when
the movement of the wheat crop began
it was blocked in the start tor want o
money to handle it, as the buyers had
to depend upon the Eastern banks te
get a supply to meet the demands
upon them. 1t was some time before
the necessary arrangements could b@
effected, and in the meantime the
buyers had to hold back, the market
ing was delayed, and when the sralr
. could be moved 1t was rushed IN 81
rapidly that there were not cars enoug
to move it as fast as it was delivered
and freight blockade was the result
There is no telling how much money
the grain buyers, as we'll as the farm
ers, lost by this drag. If there ha'
been good, strong home banks, base
upon the elastic plan contemplated b
Mr.. Harter, there would have been n
such clog as this for want OF money t
keep the crops moving. They woul
have moved right along and comm
in early and without interruption tn
railroads would have been able
handle them without the delay whlc
involved not only vexatious lnconver
ience to farmers, who needed none
to meet their necessities, but IN man
cases serious loss.
There has been much talk OF tt
ger cabita circulation of the countr
and we are told by treasury ottlcla
, that the FER capita ci ;culation IS no
fraction over tive; aty-four dollar
Secretary Foster asser IS that this IS
. larger tey capita circ. llatlon than Il
country ever had before, and t
, money lenders assert / hat it Is enous
.. to meet all the dcman ds of busine;
:. and vet there are large sections OF tt
. country to-day where there is n
r money enough in circulation to me
( the ordinary demands Of business al
f where it cannot be procured, If i'I
2 cured at all, without paying usurlG
;, rates of interest or eXorbitant dlscoun
The Per capita estimate is on papt
y The money on which it is based is n
l. in circulation. The greater part OF
d is locked up in Eastern money vau
/, from which it comes forth only
q tempting inducements.
u But, aside from this, the most aStl
% financiers have never yet establish
= what a sufic lent per capita circulate
1" IS, supposing the money to be IN ac''
circulation That depends upon ST
eral things, such as the volume OF b
mess done the methods OF doing b
4 iness. how much IS done on a c:
e. basis, how much on time, the iaclll'
a for excha nge, etc. England, the sr
IS comme1c ial nation of the world,
p about Ole half the Per capita clrcu
'e ton ths we are said to have, WI
8 France has twice as much, fact VIII
a. may &C count for the prosperity OF
t. French people, and the ease
ID rapidi'y with which they respond
s. the ca lis for loans by the governmS
q howe' ''er large they may be.
q, 1t would be exceedingly dlthcult
~ ~ this country, however it might be
Id otne rs, to establish PR capita 81
y. darG,, because the development OF
country and of its business lndust
is 50 rapid and the spirit OF enterF
so bold that there is no compar
de between this and any other coun
m: and therefore the volume Of circ
xe ton which, at some Il mes or seas
IN might seem to be sufh cient TO an