The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1893-05-31


furnace and mine abundantly prove
the truth of this assertion. The use of
bank notes as circulating medium has
furnished the means to industry and
enterprise, to progress and thrift that
would have been utterly impossible,
if metal money had been alone relied
on, as it was previous to the adoption
of the paper currency.
The progress Of banking in the
United States up to 1850 may be seen
in the decennial increase which copy
from trustworthy source:
In 1882 there was one bank, in 1870
four banks, in 1900 twenty-eight banks,
in 1910 eighty-nine banks, in 1920 3OS
banks, in 1880 $50, in 1910 907, in 1880
s24, in 1860 ], 400. These were all State
banks of issue.
Now, the question would like to
have answered is: Ifthese banks were
not a public benefit why did they null
tiply so rapidly for period Of seventy
eight years? Surely they were. Our
fathers were not born idiots.
But to prove these banks were s
blessing, and not a curse, as some
would have US believe, it is only neces-
sary to refer to the census report for
the last decade of this period, namely,
from 1850 to 1850, which shows the
largest increase in material wealth per
capita and higher degree ofprosperity
than had ever been attained in this or
any other country in the worlds his
tory. A very pleasant feature of the
prosperity Of those days was that it
was general throughout the country,
embracing not only all sections but all
classes. This was notably true of those
engaged in agricultural pursuits. These
banks were pioneers and carried the
facilities for enterprise and thrift to the
very confines of civilization.
1t is unnecessary for me to state in
this connection that our present bank
ing system, or our financial system
generally, is not at this time promot-
ing general prosperity. This PROPOSE
ton is SO plain that be who runs may
read.
Any system Of finance and banking
that is dominated or controlled by the
general government in such manner,
whether intended go to be or not, as to
cause cheap money in one section and
dear money in another, is faulty and
should be so changed that all the cit
izens of the government would be on
an equal footing to secure industrial de-
velopment and enjoy prosperity, if
they use diligence to acquire them.
Why should money be worth 81 per
cent interest in Massachusetts and 7
per cent in Tennessee, or why worth
5 per cent in New York and 10 per
cent in Texas? We will not stop to
inquire the cause of this inequality :;
we wish to discuss it only as a we'll
known fact.
If flour was worth $3.50 per barrel in
Massachusetts, and $500 per barrel ia
Tennessee, would any sane man say it
was fair and just for the government
to interpose to prevent Tennesseans
from increasing their stock Of flour and
thereby reduce the cost? Surely not.
If plows were worth $500 each in
New York and were selling at $1,000
each in Texas, who would justify the
government if she should place her
heavy hand on Texas and say, you
must not manufacture plows if you
do, you must pay 10 per cent for the
privilege. OF course Texas would kick,
and yet this is precisely what the gov
ernmeut is doing with State banks of
issue.
1t is true that money is neither -four
nor plows, and yet it ia represented not
only by them, but by every other arti-
Gle or thing that goes to make up the
sum Of human comfor, convenience
aud happiness, and cuts very big
figure in the actual cost of living
whether one borrows money or not, it
is worth to him what it costs bis neigh
bor.
I differ from some of my brother
bankers in regard to the rate of interest
as affecting the well-being Of banks.
My theory is, to have money plentiful,
stimulate enterprise, promote general
prosperity, increase deposits and make
the interest charges low. Others take
an opposite view and say maintain
rates, let industries pay it and take
care of themselves.
This, however, seems business i'm
possibility under present circumstances
and conditions. five would have any
thing like equa! industrial development
in all the States, we must first have
something at least approaching equal
interest charge for the use ofmoney in
these States.
Suppose manufacturing plant
located in Massachusetts that cost
100000; the interest on this amount
for one year is s., 800; the interest on the
same plant in Tennessee would be
S., ZOO, and in Texas it would be $40, 900.
One years operation of this plant will,
we assume, produce q net profit Of
$1,000 over and above operating ex-
penses. Massachusetts, would receive
dividend of 8! per cent above what
they money would cost, or could be
permanently invested at in that State;
Tennessee would come out even, and
Texas loses $1,000. That is, the money
invested would have earned at the
current rate of interest this amount in