The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1893-07-13
THE CURRENCY OF THE PEOPLE.

1t is now very evident that the extra
session of Congress will repeal the 10
per cent. tax on state bank notes. The
Democratic platform recommends this
action, and it is apparently the only
way to meet the general demand for
an expansive currency.
We may take it for granted then
that Congress will repeal the Sherman
law and re-establish the State banking
system. The change will not be in
the nature of a new and hazardous
experiment. For eighty years state
banks of issue hourished in this
country. They supplied the people
with a convenient and a flexible cur
renoy that enabled them to make their
exchanges and move their crops with
out being subject to the whims and
caprices of Wall street.
The system was thoroughly suited to
the wants and necessities of vast
territory divided into separate states
having all the requisite machinery for
independent political and commercial
existence. 1t enabled the people to
use their credit to aid their trade and
industry. The nation prospered under
the system and our currency was
regulated by the natural commercial
and financial laws of supply and
demand. During the war the capital
lists who had invested in the bonds of
the federal government secured the
passage of law imposing tax of 10
per cent. on state bank notes. The
law was intended to be prohibitory.
1t was designed to destroy the credit
of the people and give monopoly of
banking privileges to favored class
the bondholders. Their scheme
established national banks, and under
the operations of these institutions only
the commercial and speculative classes
in cities and towns have derived any
benefit. The farmers and owners of
real estate have been practically de-
prived of the advantages of credit, so
far as banking accommodations are
concerned.
Within the past few years the reac-
ton in public sentiment has been so
great that the Democratic party has
pledged itself to re-establish state
banks, and the opposition to this
reform is now confined to the few who
would be benefited by the further issue
of bonds and the perpetuation of the
national banking system. 1t is gen.
orally conceded that there is no
difficulty in the way OF making the
issues of state banks as safe as those of
the national banks. State laws re-
curing deposit in the public treasury
of the state and municipal bonds
would be a sufficient safeguard, with,
of course, provision requiring eff
cient inspection.
The danger of wild cat issues is
purely imaginary. The people will
not accept an unsound currency, and
men are not going to the expense and
trouble of starting banks that will be
promptly repudiated by the people,
and forced to close their doors almost
as soon as they are opened. Two
excellent features of the system are the
facilities for expansion and the fact
that it provides every section with
local currency. There need be no
fear that the notes issued by these
banks will be subject to a discount
when they cross state lines. The lead
ing state banks before the war suffered
no such inconvenience, and their
successors will circulate their notes
without any trouble under the require
ments and regulations that the states
will impose upon them. The change
will re-establish the credit of the
people and emancipate it from the
oppressive conditions dictated by the
monopolists who abolished the state
banks as war measure and substituted
the national banks in the interests OF
the cities and towns, practically ignor-
ing the farmers of the country. The
redemption of this pledge in the
Democratic platform will restore
general prosperity, especially in the
south and west.-Atlanta Contribution.