Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1894-05-03
THE CURRENCY.

The question OF the currency is one OF
the primary and fundamental provinces
of government, and has demanded the
attention Of every congress. 1t is above
all question with which congress alone
can deal. The advocates OF the free coin
age Of silver as we'll as those who demand
an increase in the issue Of greenbacks are
pressing their demands upon congress at
the present time. That new currency
will have to be provided in the near future
IS generally conceded, and a general dis
cusson will enable congress to select the
best method by which to meet the needs
of the country. Discerning that this
question must soon be met, the Demo-
cratic party at its last national conven-
ton, with the view OF meeting the needs
of the country, placed itself upon record
in favor OF the repeal of the ten per cent
tax on state banks. The United States
Investor, published at Boston, and one Of
the leading financial papers OF the coun-
try, says:
"The feeling is growing among bankers
and economic students who have gotten rid
of the old mercantile theories OF currency
that the issue of bank notes, under proper
guarantees OF security and with provision
for prompt redemption, is the best and
most scientific method of meeting the
demands OF modern business. X
"There is greater need of bank notes
where banking in its proper sense is least
developed than where checks and drafts
1, I,.11 = 4. =
this is the reason why the South is con-
stantly clamoring for more money, and
why a proper banking system would meet
the difficulty. Ii the planter could borrow
money on his growing crop from his local
bank and get it in the form of circulating
notes which could be put in circulation
through his laborers, the South would
enjoy a great access Of prosperity and the
clamor for the free coinage OF silver would
cease
''rhe prejudice against the old state
banks was much exaggerated bv the
financial crisis of 1857 and the general
suspension OF specie payments, \
The country will insist in view of the
cose-knit business relations OF all it's
parts, that any banking currency here
after issued shall be perfectly secure, I'M
iiorm in character and redeemabe in gold
on demand. This might be secured by
suspending the ten per cent tax on state
banks when they complied with certain
specific conditions and were amenaSle to
the supervision of the comptroller OF the
currency. The moment any bank,
whether holding state or national char
ter, should violate the conditions of the
Federal law, the ten per cent tax would
bring it to sudden halt
The demand for currency is largely
local, and varying in the same locality at
different seasons. With the power to
issue currency the state banks could afford
local relief at times OF greatest demand.
During the extra session Senator Voorhees,
outlined plan whereby state, county and
municipal bonds might be used as basis
for issuing currency. A law Of this kind
would practically enable localities to issue
currency for their Indebtedness, which
would be issued when needed and with
drawn when its purpose had been served.
Ii such currency had been available last
summer it would have had a material
effect upon the panic. At Tacoma, for
instance, the county and city bonds which
at that time could not be floated, would
have permitted the issuance OF sufficient
currency to have kept labor employed
continuously, debts to have been paid,
and business to have gone on without
material interruption.