The Washington times., 1894-05-21

planters of those sections are mostly tenants
at will Of the eastern capitalists.
No system was ever better devised, or could
be better devised, for making the rich richer
and the poor poorer.
The state banks, on the other hand, would
furnish currency not only adequate in vol
ume to all the requirements OF trade, having
lexibility that could not be impaired to a
national currency, whether OF paper or coin.
Expansion and contraction would alternate
in exact proportion to the industrial needs OF
the sections. When the farmer or manufac-
turer or trader has occasion to borrow from
tie banks, expansion Of the currency to that
extent takes place. When his crops or other
products OF his labor are matured and mar
keted, the loans are repaid, and to that extent
the currency is contracted. This is elasticity
OF the currency. that adapts it to circumstances
and preserves its constant and equal value.
That state bank currency can be made
equally as safe as national bank currency
the bill lately introduced by Mr.. Springer in
the House OF Representatives and referred
to the Committee on Banking and Currency
abundantly proves. The title of Mr..
Springer's bill is ITO provide for a national
currency" 1t is really bill to provide for
II better substitute is not offered, it should
be passed out of hand.
To show what saving to the people might
be effected by the state banks, take a single
example of very recent occurrence. During
the present month "a sale of 81 ZOO, 900 OF
Tennessee AZ per cent redemption bonds has
been effected in New York. The bonds were
sold at % cents, which is considered re-
markably good price. The bonds will be used
to take up and 6 per cent. bonds, and will
save the state $4,000 year in interest. The
81 ,000. 900 redemption bonds thus sold bear
AZ per cent, and are issued TO take $500, 900
of per cent. bonds and 100000 OF per
cent. bonds. The difference in the amount of
interest will be $4,000 a year. That is, that
amount will be saved the state each year.
If the State Bank of Tennessee (with its
ramifying branches) were in operation, and
were 1t the states fiscal agent, how much
easier through it to have effected this sale,
anu ~ tuo AaCt NdiuC Ol iilc DOHu-, ihStSau Vi
9S cents. Under tine provisions of the Springer
bill it would only be necessary to deposit the
state bonds in the United States Treasury and
draw the million of dollars in currency,
easily convertible, if need be, into gold. By
this single transaction the state would be
saved from an annual drain of s55, 900 (over
million in twenty years. which, instead of
going into the plethoric pockets of eastern
capitalists, would be retained by its own tax
payers to develop its resources and foster and
protect its industries.
Take another example:
The Clinch Valley Coal and Iron Company, Of
Richlands, Tazewell county. Va, has secured a
loan of s25O,OOO from eastern capitalists The
money is to be spent in starting the glass factory
and building finishing mill in addition 10 the
rolling mill which was put in operation some
time since. Various other industries will be as
sisted.
The conditions Of this loan are not stated,
but it is safe TO presume that the eastern
capitalists, and not the people of Virginia,
are its beneflciaries.
1t does not require any great financial abil-
ity to understand that under the national
bank system the wealth and prosperity Of the
country must inevitably be concentrated in
the hands of comparatively few capitalists,
and the people correspondingly impoverished.
Under our present form OF government the
prosperity of the nation is iDseparable from
the prosperity Of the states. and to destroy
their autonomy is to destroy the republic. A
judicious tariff may be great factor iii re-
storing the prosperity of the country. but a
sound and elastic currency is our vital and
pressing necessity. The national bank sys-
TEN does not meet the requirements OF the
case. Repeal the state bank tax.