The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1893-01-24
STATE BANKS OF ISSUE.

Mr. EDIToR:-The monetary question
now before the people Of North Caro-
lima is the re establishment % the
old State banks Of issu.. pro
vided Congress repeats the 10
per cent. tax on State banks
As to the tax itself, there is no good
reason why it should not be repealed.
There is no Justice in taxing small con
Germs out OF existence for the benefit
Of large mes. But repeating the 10
per cent. tax on State banks and estab
Iishing State banks, are two separate
and distinct propositions. A person
can favor, the first as an act of Justice,
and oppose the other as a wild cat
project-a project calculated to work
injury to the ones it prctends to help
The Constitution of the United States
says that States cannot Issue money or
make anything except gold or silver
coin a tender for debts. States can
issue prOmisory, nOn-legal tender
currency when permitted to do so by
the General Government. That is "a
money that is not a mOney-merely a
promise to pay; a promise to pay is
valued by the ability Of the person or
persons making the promise. And if
the parties making the promise to pay
are unable to pay, then the promise
amounts to but little. And if the legis
lature insist on re establishing those
denominations of Andre Jackson, State
banks Of issue, then let every safe
guard that possibly can be devised be
thrown around them to make that
promise to pay as good as possible.
Even at best it can only be a local
money that will be too poor to even
get out Of it's own neighborhood. It's
stay at home qualities is n of the
virtues its advocates claim for it. If
we are to be burdened with the stay-at-
home currency, then we advise the
farmers to let it exercise its stay at
home qualities to the fullest extent and
stay in the vaults of the banks that
would issueit. What do you want with
it? it is not a legal currency, and is not
good for debts; and the probability is
that the banks would unload on you
and then demand a better money in
return. What we want is a better
money. We want a national currency
safe, sound and flexible, good here,
there, and eve ywhere the same where
debts are made and where they are
paid. We want a money that will be
good in every State in the Union-a
money that you "a put in your pocket
and travel from Maine to California
without paying tribute to the money
changers at the borders of every State.
Such a money as that can only be
Issued by the General Government.
And our mission will be to oppose State
banks of issue that have no power to
issue money under the Constitution of
the United States, and such issue
would only result in placing in circula-
tion a local money that would not pass
for its face value. And if the issue of
one bank rated higher than another,
it would necessitate that every bu5i
ness man keep a table to show the
relative value of the different notes.
Any person at one glance can see
how much trouble and confusion such
a currency would create.
To prevent such confusion, and to
make the notes of uniform value, the
banks would have to deposit with the
State Treasurer bonds sufficient to
make good every dollar they issue.
Now the question is, are these State
bonds sufficient to do an extensive
banking business on7 and if not, what
excuse can be for issuing more9 The
probability now is that the party in
power will side-track the Farmers