The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-05-02

in excess of seventy-6ve per cent. upon
it's paid up and unimpaired capital.
Second-Tbe holders Of the notes
shall have a FIRST lien upon the assets Of
the bank.
Third-The stockholders shall be
personally liable to the holders Of the
notes to an amount equal to a par value
of the stock held by them.
Fourth-The notes shall be redeem
able upon presentation and demand at
the counter of the bank in money made
a legal tender by the laws Of the United
States.
Fifth-Tbe banks shall be examined
FIVE times a year by a State officer, and
the result of each examination stall be
published.
The State can provide any additional
requirements it may see proper. There
will be, under, the bill, no Federal su-
pervision and control. If the bank is
organized under the. laws with these
requirements, it is not subject to the
tax. ALI the Federal authorities will
have to do is to examine and ascertain
if these requirements are imposed by
law, and if imposed the bank and its
issue are absolutely free from Federal
control. The enforcement Of all the
provisions is left to the States. 1t is
urged that the States can be trusted to
execute faithfully more than the Federal
Government, a matter in which they
are individually SO much interested.
The history of State banks shows that
where the lag governing the vas
good, that the issue was good and safe.
Where the Law vas defective the issue
was babe.
There can be NO "wild cat currency
under the requirements Of the bill. 1t
would give a safe and conservative and
elastic expansion of the currency. The
capital invested in State banks with the
surplus fund which could be transferred
into capital. amounts, by the report Of
the Comptroller of the Currency, to
S673, 500, 076. Under the bill there
could be an expansion of the currency
if needed by the demands Of business,
to the extent of about $500, 600, 900, or
about So per capita. When not needed
by trade, it would not be issued by the
banks It would give US a safe, elastic
currency. increasing and decreasing. as
the demands Of business required. |.
would bring great and immediate relief
to the South, so
The complaints of The South tina,
the present system is insufficient to
furnish it with q currency. aud causes
it to accumulate in a few States far
in excess of their wealth, is very just
aud true. The best way to make a
comparison of the amounts of curren-
cy in different States is the aggregate
Of capital, surplus. undivided profits,
and individual deposits IN their banks.
This gives the amounts Of real loanable
fuods 10 s~~State. 4Fhe average per
capita of bankable or loanable funds
in the United States is S95.68. The
average. wealth ju the United States
per capita is SO 80. The average
wealth per capita in New York is $l4.-
80. Its average per capita of bank
able and loanabie funds is 1921. So.
Thus New York has only about SO per
cent. more than its average wealth per
capita, and yet almost 800 per cent.
more than its supply Of currency.
Alabama has 81 IL per capita, of
wealth, and So 81 Of baukabIe or loan
able fuods. Thus we see it has not quite
half of its average wealth, and yet not
quite one.tenth Of its supply Of cur
rency. Massachusetts has 1892 of
wealth per capita. aud $326.52 per
capita Of loanable funds. Thus this
State has about 25 per cent. more than
its wealth per capita, aud over 800 per
cent. more than its average supply Of
currency. North Carolina has 1851
per capita Of wealth and $3.50 Of bank
able funds. It has one.third of it's
average wealth and not one-tenth Of
its average supply Of funds. Kentucky
has So 81 per capita Of wealth, and
$41.40 per capita Of bankable funds,
which is above the average Of Southern
States. yet shows that her supply OF
currency is not as great as it should be
in proportion to her wealth.
Georgia has 81 81 per capita Of
wealth and 1888 per capita of bank.
able funds. Thus Georgia has nearly
half its average wealth, aud only about
one-6fth of its supply of currency.
Virginia has S. 81 per capita o.
wealth and $26.13 per capita of such
funds Thus Virginia has about hall
its average of wealth. and only about
one-fourth Of its supply Of loauable