The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1893-09-07

on the part of the business people in
many parts of the South and West for
some reasonable and safe increase in the
volume of currency, and aside from this
there is feeling that is shared in by
many of the soundest financial authori-
ties in the country, including several of
the members of the committee on bank
ing and currency, that there ought to
be an entire revision of the banking and
currency systems of the country. The
currency of the United States is now a
patchwork affair, there being, counting
all the different kinds of paper and
metallic money, no less than nine
different kinds of currency in circulation.
The rapid decrease of the public debt,
with the certainty that it will disappear
altogether in a comparatively few years,
makes it necessary also to take into
consideration the question of what is to
be done to continue the national bank
circulation or provide some substitute
for it. At present the basis for the bank
circulation is diminishing with every call
of bonds and at the same time the
growth OF the country is increasing the
need for the banks and their circulation.
1t is the opinion of many of the authori-
ties on financial matters here that it is
now time to look about and settle upon
some permanent system of currency and
banks, and il was to consider these cues.
lions that the conference of yesterday
was called.
THE TAN ON STATE BANKS.
The conference was confidential in it's
nature. The gentlemen who were present
do not feel at liberty to talk freely as to
hot no
that the plan suggested during the last
banks circulation, but requiring all
such institutions desiring to issue circu
lating notes to deposit with the treasurer
of the United States certain approved
securities, to secure their bond, was
discussed at length. There are many
persons to whom q mention of the repea
OF the tax on State bank notes recalls
the wildcat banks of some of the Western
States, the money OF which was not good
ten miles from the place where it was
issued. This feeling against State banks
has a tendency to make many OF the
members of the committee on banking
and currency, who realize that something
ough to be done before the national
bank circulation is further contracted by
the redemption of more bonds, hesitate
to approve OF any sort of revival of the
State banks. This feeling was expressed
at the conference yesterday and was dis
cussed with the result that it can be
confidently asserted that if any bill is
introduced at the present session OIL
Congress with the approval of President
Cleveland and Secretary Carlisle for the
repeal OF the State bank tax it will be
one in which the banks, while they may
be called State banks, will be utter
national supervision. In other words
while the banks may receive their charters
from the States the national government
will supply their notes and will prescribe
the class of securities on which they
shall be issued. The effect of the change
will be much the same as if the present
national banking laws were amended sc
as to allow certain other securities, in
addition to government bonds, to b.
deposited to secure circulation. The fact
was developed at the conference that
President Cleveland will favor a bill fol-
the repeal of the State bank tax if there
are such safeguards thrown around
their circulation as will insure theil
maintenance at par with gold.
STRIVING FOR A SOUND CURRENCY.
The holding of this conference does not
necessarily mean that an administration
measure for the reform of the banking
system of the country is to be reported
from the banking and currency com
mittee at once. There will be an
avalanche of bills OF all sorts bearing or
the currency and banking laws introduced
as soon as the rules of the House have
been adopted. These will all be referred
to the banking and currency committee
1t is not probable, however, that there
will be immediate action by that com
mittee, as it is thought best to proceed
with carein making any sweeping reform
in the currency. The gentlemen who
participated in yesterdays conference
realize that it will not do to make q
mistake on such a serious question, and
no bill will be reported that does not
carry in itself the assurance that every
dollar that may be issued under it will
be worth a dollar in gold. The end aimed
at is to provide currency which will bt
as sound as the national bank currency
has been, but which will at the same
time have more elasticity, and viii
expand when there is q demand for il
and contract when it is not needed. The
Southern planters and the Western
farmers contend that if they had such 8
system there would not be the present
difficulty that is experienced eyerv Yea,
about the local banks getting money TO,
the movement OF their crops. One of the
immediate effects of the conference YES
terday is expected to be given to the
Democratic Senators who are still con
tending for free coinage an intimatiou
that the administration will suppOrt q
reasonable currency-reform measure that
will have the effect of increasing the
amount OF bank circulation and putting
the banks upon a permanent basis with
more elasticity to it than the present
natlonnl banking system. 1t is under
stood such an intimation will have the
effect OF very much reducing the opposi
ton to the repeal bill on the Democratic
side of the chamber. President Cleye
land was not at yesterdays conference
but it was called with his knowledge and
Secretary Carlisle expressed his views.
A subsequent dispatch gives the fol
lowing additional information as bearino
on the subject
THE STATE BANK TAX QUESTION.
The attitude OF the administration
toward the propoposed repeal of tax on
Actdlc Oduh CIfCuldtiOu was CQo tODlC o.
general discussion about the Capitol
to-day. The general feeling was that il
some assurance was given that the
President would favor some plan of bank
note extension after the passage of the
repeal bill it would greatly facilitate thu
passage Of that bill through the Senate
Senator Gray is quoted as saying that
the day is not far distant when thit
whole subject would have to beconsidered
and acted upon by the Congress of thu
United States. He said the conditions
to-day and those before the war, when
the State banks were in vogue, were ar
widely different as possible. There was
no more danger of wildcat banking than
there would be of attempting to enforct
the fugitive slave law. He believed thai
the wisdom of Congress would envoly,
some plan upon which the currency oil
the people could be based and given 8
stability that could never be questioned
Government bonds would soon cease tc
exist, and when that time came the
security that now preserves the notes Of
national banks and makes them as GOOD