Middletown transcript., 1892-09-29

/ world Wnere DankS 6Xlsb, Uut NeIy ASW
Americans have seen such notes in the
United States, and never in circula-
ton, for no Englishman brings his
bank of England notes to this country
when he comes here to make a visit.
If there is any reason in Mr.. Biaine's
description of state bank notes; if his
objection is true and logical, then the
notes of the Bank of England are too
worthless to be taken abroad. But
even Mr.. Blaine would not have the
assurance to question the fact that the
notes of the bank of England are
more easily used by travellers in
foreign lands, than our much praised
national bank notes. Mr.. Blaine
knows that the Bank of England is
not national or governmental bank,
but purely a private corporation, and
that the banking system of England
is free banking system.
Mr. Blaine says: II have heard
the argument adduced, that we would
keep the money at home" and at once
dismisses that claim with a sneer.
Let us examine what keeping money
at home means. To properly make
that examination, let US first be make
aware of the fact that the present
system of banking in the United
States means that we have fixed and
unelastic currency. At times the
circulating medium is in certain
money centres far beyond the require
ments of those centres, and when
money becomes plentiful, city banks
loan to, or place money to be loaned
by them, in country banks. And on
such occasions, country manufacturers
and farmers are encouraged to use
their credit-honesty, sobriety, indus
try, economy, and good business
methods being its foundation-to en-
large their factories and improve their
farms. A stringency in the money
centres calls in all the country banks
outstanding loans. The notes which
the country manufacturers and farm
ers have been encouraged to believe
would be renewed again and again,
must be paid, which means that the
products of their factories must be
sold at ruinous prices, and that the
farmers must frequently sell their stock
and crops at sacrifice, and possibly
part with farms, 1t was not because
of bad business methods of either the
4 manufacturer or the farmer that those
disasters came upon them; it was not
because of any special financial strin-
gency in the community in which
those factories and farms were situated
but it was because in a great money
centre, perhaps thousand miles away,
set of "money chargers" had posi-
bly, formed syndicate and locked uI
certain amount of the currency Of
the country for purely selfish purposes
Such things have frequently been
done When that locking up process
comm ences, the creditors of the coun-
try merchants, manufacturers, and
farmers, at once commence to urge
speedy payment of bills due. Money
which under less pressure would have
been deposited and allowed to remain
in the county bank, is under such
conditions sent directly to the. city
banks. The loans Of money made by
country banks cannot at all times, and
when due, always be collected, and the
country banks, under such conditions
must send to the city creditor tine
"free money" which they have ac-
cumulated, and in an iucrediably
short time they are completely de-
pleted of currency, and cannot, on any
security, loan money to the people Of
the communities in which those banks
exist. Syndicates of sharpers are moi
always necessary to create tight
money market, for they frequently
occur because of loss of mans faith
, in his fellow man. But stringsncy
in the money market under our pres
ent system, invariably affects frs1
those least able to stand it.
think I have fairly represented
the condition into which country
banks have frequently been reduced
under our present banking system
which Mr.. Blaine and his parry claim
to be the best ever devised; system
which rests upon the poverty Of tht
people, and ends when the people arr
rich enough to pay their debts. Th'
holding Of bonds Of the United States
by the Treasurer, to the amount OF tn
National bank notes issued, is thu
foundation of governmental guarantee
, of the payment Of the national banl
bills, but when the government M
, longer owes money, and has no bonds
out, the circulating medium must b.
called in, and future legislation be-
/ comes necessity to prevent con-
/ traction of the currency. 1t is but
/ "greenback" currency which we nov
have, depending for its stability Oh
continuous favorable legislation b.
, Congress, yet Mr.. Blaine says, "witl
all its calamities, the War brought u