The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-02


and is I'm debt. because he has blindy
acquiesced I'm tariff for protesting
manufacturers. In his desperate condi-
ton he has been striking at Imaginary
| enemies. He has formed alliances. and
| through them he has been striking at
| his best friend, the railroad. Ihose non
hands OF grasping, soulless corporations
as he would call them. were consuming
his substance, as he claimed LeSlsld-
lures were packed with representatives.
willing to DO his bidding. and laws enact
ed appointing commissioners to reduce
and regulate railroad charges.
Then followed a great falling OF in
railroad systems are in the ha-ids or
receivers. Still the farmer Is In debt
Now the railroads being prcstrate, he
thinks that tire relief he is seekiLg VIII
| be found in the free coinage or silver.
lie thinks that If the country could be
flooded with dishonest dollars, imitation
! of prices would follow, and he could pay
| honest debts with dishonest dollars. HOW
nljserably deluded he is. Prices would
| indeed be inflated but for every 10 per
cent advance he would thereby get Tor MS
| produce, he would have to pay at least
| L 1-2 per cent. advance for his supplies.
The falling off in railroad earnings
| end the silver agitation have caused
withdrawal OF confidence, and consequent
| ly the hoafdin Of money. Its &C cumula-
| ton in London is marked. IL seeks IN
vcstment only in securities that yieid
| gold instance the recent bidding for the
! Austrian loan, about ten times the amount
| of the securities offered England sold
vast quantities OF our securities In this
country, after the Barings failure In
order TO supply money then badly wanted
| there. Now she declines 10 buy them back
| for fear that we will pay in silver.
The balance OF trade is against us, ana
! the withdrawal abroad of confidence In
our securities tends TO Increase the now
! OF gold from our country, and frightens
! our own bar ks and capitalists, ana thls
want Of confidence at home Is Imme-
! date I'm its paralyzing effect upon the
| busiress Of the country because OF our
national banking system.
The national banking act, as is well
| known. was war measure of prime ne
cessity. Had the United States Govern
! ment issued greenbacks 10 unlimited ex-
| tent 10 meet the increasing demand for 1t,
measured only by ITS decreasing pur-
| chasing per, the price Of gold would
| have arisen to that memorable altitude
reached by that precious metal In the
inflated currency Of the Confederate
States.
But the commercial North was guiltless
Of the folly through which the agrcul-
the Government was sent 70 force the
banks to buy Government bonds 10 pro-
vide the means for carrying on the war.
The forcing clause Of the national bank
inS law was a tax OF 10 per cent. per an
mum on all bank currency other IMAM ths
notes from national bank, and the in
ducements 10 the banks was the profit
OF not only the interest on the Govern
ment bonds held as security for the bank 5
issue of notes, but the interest from
loaning 90 per cent OF bank notes issued.
Not only the Old banks became national
banks. but hundreds Of new banks were
chartered.
After the war the people OF the South,
remembering the old State bank currency,
seldom current beyond the State in which
II was issued. were pleased with the
great convenience Of currency of uniform
value throughout the Union, and. thougS
g'eatly hampered Dy inadequate banking
capital through war losses. the cOnven-
fence Of n currency nowhere questioned,
has iulled them into acquiescence in
that UncOns itutional bar Une tax OF 10
per cent per annum) TO the charterlng Of
State hanks Of issue While that feature
of uniform value in the national bank
currency affords the great convenience
Of ready circulation in any part of our
vast country, It las a less percepuble
feature for mischief, as far reaching in
its Inconvenience as its circulating con-
venience. 1t flows without a ripple 10
New York, the great monetary centre Of
the country, from the country banks. 10
get a share OF profit from being loaned
On call. and yet subject TO the country
banks uses AT any moment. This profit
TO the country bank. though small, IS
better than a greater rate of interest on
such surplus money at the risk Of time
loans az home. The vast amount Of cur
rency so accumulated in New York
is loaned from day to day in Wall street
on the bonds and stocks lists on the
stock exchange.
The great accumulation Of currency
in New York is shown by the aggregate
bank deposits Of recent date The figures
were $i47.00) 900, Of which fifteen banks
held s2iG,O0OO0O. This accumulation has
so fostered speculation in Wall street
that the daily transactions there are
enormous as compared TO what they were
before the war. And it has made New
York the great centre whore all large
enterprises must be taken for pecunary
assistance. 1t is the great financial heart
into and from which the currency flows
Any disturbing element causes agitation
there first. and 1t is quickly felt 10 the
eXtremities. and when any cause at dis
tants points, such as moving the crops
rency from the heart. there is business
disturbance at that centre causing in
convenience at all other points.
TINS accumulation Of currency at New
York under the control of a comparative
~ few banks and trust companies affords
too, a dangerous power for manipulation,
instgated by the bulls and bears Of Wall
street, and profitable 20 the money lend
ers, IS instance the recent rates Of 10 TO
- per cent. per annum, current rates for
several days.
This easy disturbance OF the supply OF
currency, whether from want OF conf
dence resting upon the few having such
control, or from demands at the crop
centres. or from manipulation, is largely
the cause of the cry for more currency.
a cry so helpful TO those who are produc-
ing silver and sc sustaining to the silver
agitation.
Remedies-1 Apply the knife TO the pen
sion list and cut off the names that never
should have been or it.
2. Reduce tariff rates that we may have
lower prices and get TO freer inter-
change Of commodities with other coun-
tries at the earliest possible date.
3. Strike out from the national banking
act the tax on State Bank notes, thus
leaving the States free 10 charter banks,
whose issue of notes might be based on
gold and silver say two dollars in notes
for one of coin, and further secured by
an annual tax Of l per cent. to be paid
into the Treasury Of the State. and in
vested by commissioners in unnuestiOned
securities, until a certain percentage Of
the aggrcgatc amount OF the capital Of
the banks had accumulated. and there
after the interest on the fund TO be paid
urO rata 10 the hanks