The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1893-09-12
ABOUT FINANCE.
NOTABLE INTERVIEW WITH M"'
JAMES SWAMI, OF NEW f0AA'
A Very Interesting Presentation oi 'no WY
ia Solve the Financial frooieih nv"
Confronting the Conhtry'

also pTeSIueHI VI ~
bank, is in the city. :. A.
H. Sy,nn * a frequent visitor in At
lanta. Indeed, he divides his time between
Atlanta and New York, and IS mere az
most if not quite as much us IN Ne" Aoi
.Ycs." said he to Constitution rcpor'ei
Yesterday. Il think the paES;ky leelihS -. =,
about over, and 1 hope that every nlls ;' WV,
soon be on Il normal basis. IL hi' 60; ei',
me- great pleasure to see thc Hl''s han"
way in which the BANKS ol I,nnn all along
ridden the storm. There has peeIi aii 49, ,''r
n feeling of confidence and security aiuh??n1
them. but | confess that 1 dld not 'n MIN
that after all the trouble was o'Gi ui.o
would be able to make as so3d SLY ;" t ths
as they now make. 1t simply SHOWS tne
STRENGTH of solid institutions i'll a Solo CITY
like Atlanta. 81 .,,o ontlook2'
ooh. | hope that everything VIII 9e an
right in the matter or hhahc,ai Hs ',,,Se 70
have confidence fully restored. L nas W,
given some thought as to what ought W o
done but as / am Il very quiet sofE~ii, d
man l have not cared to urge my view" .h;r1,
Would you mind giving what you !lllli IN
to be the solution of the present, tansie III
the way of financial legislation!
.Not at ALL" said Mr.. Swami, and L
simply give them for what they are worth,
feeling confident that II something on tno
line | advocate is done the finances OF this
country will be put on solid basis.
a Demand Tor More Money.
"In the first place." continued MIR.
Swami, 1T must be admitted that mere Is
an imperative demand tor more money WIN
which to do the legitimate business OF inc
country. | take no stock III the argument
that there is now enough money III the couh7
try TO do the business required OF 1t, ana
/ am equally sure that the per capita CT
cula1ion of this country is entirely ihade-
ouate. While | have not the exact hgureS
in mind, the per capita circulation Of lic
United States is, l believe, about pit. ~
England it is approximately go and III
France approximately 500. :
Now, on account of the peculiar sltua-
ton here it is imperative that we should
have Il much larger per capita circulation
than either England, France or Germany
Indeed, We should have double the per
capita of any of those countries; Let me
course, the great financial center OF the
British isles. On account o. the size or
the country and the facilities for tranSpor-
tution the shipments OF money from L"h-
don can be made TO reach almost any part
of the united Kingdom in a night, II Ed
inburg was in a pinch, and needed neip
at the close of business one day. rehel
could be sent from London in the shape OF
currency and would arrive III i1dinburg by
the beginning of the next days business
So it is with any part OF the United Ming
dom, and as London is to that, so ParlS
is to France, and Berlin to Germany.
Let us compare this with the situation
in this country, where states are as-arge
as empires. Suppose, for instance, Cal
weston gets i'll Il pinch, or some CITY III Inc
far west, or even in Georgia. 1t becomes
necessary to appeal to New York for help
New York, of course, occupying the same
position in this country to that occupied by
LONDON or Berlin or Paris in their respect
I'VE countries. Here it would take two or
three days to get the relief that London
could extend in IL few hours. If immedl-
f,,
question of probably several days. Thus
the condition here demands that there be
a larger proportionate amount of money
in circulation, and the business OF this
country will never be on as solid basis
as it ought to be until there is enough
money in circulation to exercise lis proper
function in moving commerce. We ought
not only have $50 per capita, but even
more than that.
ravors state Banks.
What is your opinion of the proposition
to repeal the 10 per cent lax on state
banks =
Il am heartily in favor of it, promptly
responded Mr.. Swami, and l speak aS
an official of a national bank. l do not
know of anything that would go further to-
ward giving relief from the present sltua-
ton than Tie repal of this unnecessary tax.
giving every state the right 10 bank on the
credit of its own bonds or on the bonds of
its municipalities, or other glt-edge secu-
adjustment of such a system of state banks
it would probably be the Wisest course to
adopt q system of national regulation so
that person would know that every dol
lar issued by authority of one state would
be backed by dentically the same strength
that stands behind the dollar of any other
state. III other words, | would like to
know that dollar issued by Missouri is
based on the same security and subject to
the same inspection and supervision as a
Df ar
the state of New York. l think this would
be the safest plan, and while it would de-
prive no state of its authority it would I'M
part to such a currency uniformity which
would remove all fear of wild cat notes or
deprecated money. | would even be will
ing that every state should supervise it's
own issue, and that state currency should
be responsible only to the state in which
it is issued. but all such currency should be
emitted under national uniform regua-
ton.
What about national banks?"
u think the national banks have
made this country the best
50 stem of currency ever known. and while
| am an advocate of state banks, | am
none the less enthusiastic in my belief that
the national banks occupy a place which
cannot be filled by any other system A
good state banking system would simply
supplement the working of the national
banks. one aifordins currency for home
working and the other a medium for inter
national exchange. Each would work in
complete harmony with the other. and each
would possess Il function of its own that
would make the other more valuable.
would put the state banks on the same
footing with the national banks, and on
the other band | would repeal the / per
cent. tax en- national issues Thus both
would rest on the same basis. | would
also allow the national banks to emit cur
rency to the full value of their capital.
instead of 80 per cent. as now. This bill
is now before congress-, and will | believe.
become Il law.
AS to National Banks.
But as national banks are based ON
government bonds, what would YOU do. as
the bonds We're retired. to prevent the de-
crease in the circulation of the national
bank issues?
Il would meet that by authorizing the
issue of per cent government bonds. and
in order to prevent any speculative tanden-
CIV | would inhibit the use of these bonds
for any other than banking purposes. They
should not be allowed to circulate or to be-
come objects of purchase or sale These
bonds should be issued by the government
solely for banking purposes. and after they
have been purchased, and have performed
their function of forming the basis for
establishing national banks, they should be
Immediately returned to the federal treasn-
ry and held there as securities | think
it would be the greatest calamity thar could