The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-17
Not Free Silver, but More Banking Capital
Wanted.

article, "A Bad Day for the South,
In your issue Of 3lst ulto. Why should
we be surprised at the vote on the
silver question by the representatives or
the South? A majority Of them are from
rural districts where the voters imagine
vain thing They are under the impression
that free coinage of silver is the one thing
needfu for their prosperity, and but few
Of their representatives, are bold enough
TO risk reelection by an effort to teach
them better. 1t is true that your valuable
paper has been doing a great amount OF
good in that direction. but o;her neWspa-
pers are misleading the people. who are
anxiously inquiring what can be done To
make profitable the cultivation or the
soil, the great Ddsrlying source from
which prosperity should be expected
The one thing needed 10 make farming
profitable Is certeinly not the free coin
age OF silver. The prevailing idea that
constantly increasing supply or silver
would axe the country prosperous, IS
an ignis-fetuus that the people are fool
ishly following. An abundant supply or
cheap money will increase prices nominal
~ tut Who viii be benentted her epy
Cui bono? Not for the good OF the farmer
who may sell his produce for what seems
n high price IN cheap money but no"
much of II will be left when he shall have
raid for, at enormously high prices,
Coecause Of cheap money! all the sup
plies needed for his family? and certainly
labor is his capital, y hich he should nave
in good money that ne may buy MS sup
plies at the greatest advantage Cheap
morey may seem TO be TO the advantage
OF property holders In debt. The amount
Of their indebtedness being fixed, WINE
their property would advance IN price
and pay larger amount Of indebtedness
L.. In m
but having borrowed good money, would
payment in cheap money be that kind or
honesty that is considered the best policy?
The great want Of the agrculturist, the
mercl mt and the manufacturer In ths
South is the use Of banking capital When
needed for legitimate purposes. Ot that
accommodation the South has been de-
prvei because Of the 10 per cent tax on
state bank Issues But for that pro-
hibiti,n. the demand for increased bank
ing capital would have brought IT, The
want has been evidenced by the rate or
interests varying since the war from to
u per cent Let not the representatives
from the South be deceived by any legls-
latiou that will not permit and encourage
an increase Of banking capital Tor the
South. Increase III the circulation OK Ma
tional banks will not help the South. The
reserve OF every NotiOnal bank IN the
country varying at II or . per cent. WOMB
still flow TO New York 10 obtain part
OF the interest a which II may be loaned
on tan from day TO day, by the banks
there. unless. indeed, the National Bark
ing act may be so amended as 10 pro-
hiblt the allowance OF interest by one
national bank 10 another. But while that
would keep the reserve IF the hanks at
home, il would only increase the accom-
mediation at home by call leans. which
W, uld not help the agriculturist The
10 per cent tax being reInov I'd, state
banks Of issue could be chartered under
a general banking law If eacn state,
allowing the issue OF two dollars or Canh
notes for one Of gold and also the IS
sue Of notes, to reasonable extent on
State and city bonds Requiring also a
tax of one half Of one per cent n the is-
sue Of each bank. TO be paid into the
State treasury 10 be invested by COM
miss;oners. and held as Sc ,urlty for the
circulation and for the prompt redemption
OF the Issue Of any bank falling TO redeem
It's notes Providing also for bank eX-
ami, ers and for any oth,r SAT guard
deemed necessary 10 make the notes Sc
cure beyond question. Under such
banking privileges. there should be pro-
fit TO stockholders sufficient 10 induce
the CAPITALISTS in the State 10 subscribe
TO the capital stock ef the State banks
particularly il the Legislature would
exempt the stock from taxation
THIN we yNouid have ample banking
capital IN every section Of the South,
and farmers and planters might De as
regularly accommodated as merchants
and manufacturers, provided they VIII
Geo TO II that laws are enacted 10 enable
the banks. and ali creditors, 10 collect
from delinquent debtors without the de-
lay that the laws now afford.
II Is Just as legitimate Tor the agricni-
turist 10 borrow reasonable amount
OF money to pay for labor and supplies
in advance Of his harvest as for the mer-
chant: but representatives from rural
districts have favored laws 10 stay the
collection OF debts: and from that, as
well as the want Of sufficient banking
capital TO accommodate all classes they
have suffered. The agriculturist has the
remedy I'm his own hancs; let him apply
II.
The great difficulty in the way or the
repeal Of the 10 per cent. tax on state
banks IS the mistaken but very preVa-
lent idea that national currency, good
in any part Of the country, is an advan-
tage OF paramount Importance TO All
the people while in fact 1t is only COZ
venience 10 the people who travel ana
II Il was superseded by State bank notes,
the inconvenience would only be a matter
OF a small percentage I'm the way or eX-
change. a return to State banks, how
ever does not necessarily do away with
a currency Of uniform value throughout
the country, for Congress might authorize
the receipt from the banks Of gold, and
State bonds, and whatever else might be
made the basis for currency, ana guaran-
tee the notes, as is now done
There Is nothing in the objection urged
by the opponents Of State banks 20 the
issue Of two or three dollars OF notes
for one Of gold. 1t is certainly as safe 10
make such issue Of circulating notes as
TO lend on time three-fourths Of the de-
posts. II is just as improbable that
two-thirds OF all the outstanding notes
would be Withdrawn.
The writer only wishes 10 make this
fact clear-viz., THAT AN INCREASE
OF BANKING CAPITAL is WHAT THE
SOUTH WANTS, II matters. not whether
it is under the present National Banking
act. amended. or through the organiza-
ton OF State banks of issue.
Had there been a sufficient arno INT or
banking capital throughout the South
since the war, there would have be1a no
cry for free silver, and a large majority
OF the representatives from the South
would not have voted fer free silver and
uncovered 10 the world the unfortunate
views on this financial question entertain
ed by so many of the people in so large
section OF the country; nor would the
senators from that section have ex-
posed themselves. as they are doing, TO
the well-merited rebuke OF business men