The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-18

oand,,io,s from those under which bank
inc was 90 remunerative while the United
states Government needed bond purchas-
ers 70 meet war expenses. Then the
bonds we're not at premium ana the
hanks not only collected SIX per cent
interest from the bonds deposited WIN
the Government as security for the ninety
nar cent Of currency issued, but made
interest on the currency borrowed as
we'll as the profit realized from deposits.
mt these favorable conditions In the
nature Of things could not last. The close
Of the war put an end TO the extraorui.
nary expenses Of the Government, ana
brought back the revenue-paying Soutn-
ern States, in poor condition, ~ IL true,
hut not too poor to be MIXED. Inc creoit
Of the Government improved rapidly as
the debt was reduced, and as the high
interest rate bonds matured, and as the
nuhlic took greedly new bonds at
greatly reduced rate OF interest up went
tho market price Of the high-interest rate
rnatured bonds until many banks found II
profitable to sell their bonds to swell
their surplus, even at the loss OF taking
I'm their circulation, which is to-day less
than half of what 1t was at one time. and
the temptation TO organize banks at the
South was no longer 80 irresistible TO
Northern capitalists as II had been.
AS explained in a former communica-
ton, the reserve OF the banks flows to
New York. to be loaned on call there.
and so much OF the banking capital Of the
South thus goes to increase the business
OF the great centre, while the business
of the South suffers.
Without currency 10 measure value,
the buying and selling OF commodities
must languish.
The people OF the South. more concerned
alb )ut the plainly perceptlble ills OF negro
suffrage, carpet-bag rule, courts or IN
Justice, unjust taxation. &c, have un-
complainingly submitted for nearly a
generation to that unconstitutional tax
of ten per cent standing In the way OF
the organization in the several States OF
State banks of issue, through
which banking capital could be so greatly
increased.
The notes Of such banks might be Sc
cured by State bonds. as well as gold ana
silver. on some satisfactory basis, and so
amply secured as TO be absolutely I'M
questioned in the States. 1t is fact
well known throughout the South that
every enterprise Of any magnitude must
be taken to New York for pecunlary alu
II will also be universally admitted that
three or four times during each year tne
money stringency throughout the South
is painfully felt by business men ana by
hank presidents. whose duty II is sup
nosed 70 be to have an unlimited supply
OF money for the accommodation OF their
custoners They are besieged at such
times ,ast all understanding except
that Of the President Of the United 9ta,eH.
In fact. the insufficiency OF pahhl"S
capital in the South is only surpasSeu
by the inadequacy Oh GoEeL''. ~
patronage to satisfy the green lol ~. ~.
~.
Indications point 10 the conclusion thdt
tbe Great want Of the South is that eacn
state shall be left free 10 charter banks
of Issue It would have been passing
strange II the National Banking ACT
framed as q war measure, had In It's ope-
rations exactly suited the country IN
time Of peace. The fact is, il has sulled
onlv 10 aid the growth Of New York city
the great commercial centre OF the couh-
try. to which it has given an apuHua u,
SUNNY of currency, at the cost Of DINER
communities, and TO the lncaicu!aU'e III
i,lrv of agricultural sections.
orr cities have grown since the war
some of them because Of extraordinary
commercial and manufacturing advalt-
ages and because OF the well-known tact
IN the Southern States that agricultur
pursuits in the absence OF all moneyea
assistance, have been abandoned by ne
Young men, reared in rural communities
for occupation in the cities Thus we
have seen our cities increase, but not as
the wonderful resources OF the South
entitled them to grow, and as they would
have done with an abundance Of banking
capital. If our cities trade suffered
what shall be said of agricultural com
munities? Deprived of slave labor. and
with neither capital nor bank accomno-
dations 10 enable the farmer 70 sub
divide and enrich his land. 70 make
free labor profitable, and In the absen'e
~ all state or Federal legislation 70 as
sist in that direction, the great sustaining
industry Of the Southern States has grown
from bad 10 worse. until the crying eVll
has called together the Southern Govo--
nors to invite immigration to the South.
They have met and issued such invita-
tons and We can only hope that those
who come 10 cultivate the soil will bring
much-needed capital with them. The
conditions in the great States comprising
the Union are so dissimilar in climate,
mineral deposits. soil, products, manners
and customs, that no Federal banking act
suitable to all the States could be de-
vised. Such acts should be left 10 each
sovereign State. The Federal Government
as well might attempt to enact uniform
laws for the local government OF each.
TO increase banking capital IN the South
ern and Western States, whore there Is
no such accommodation Of capital as AZ
the North and East. is the great moving
cause Of the cry for free coinage Of silver.
The masses in the Southern and Western
States feeling the want Of a better supply
Of currency, but ignorant alike Of the
cause and Of the proper remedy. have
caught up the cry OF the silver producers
for free coinage OF silver. Thus 20 the
10 per cent. tax IN the National Banking
Act, standing in the way OF the charter
ing Of State banks may be traced the
greatest difficulty now confronting Presi-
dent Cleveland and the Democratic party.
The great element in the party crying for
the imaginary relief Of free coinage ac-
quiesced IN the declaration OF a platform
upon which Mr.. Cleveland would consent
to stand, well knowing that no one could
have been elected on free-coinage-of-
silver platform and yet that element
in the party. through their representatives
In Congress. has disappointed Mr.. Cleve-
land. and those without whose votes he
could not have been elected. by throwing
difficulties IN the way OF legislation be-
fore the adjournment OF Congress. FOR
The relief OF the country's financial situa-