The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-15

Id. tSJD
what way Il could do SO. Only through the
establishment Of banks in farming COM
muaities can the farmer obtain loans,
ard 10 have them establish "a, banking
must be made profitable.
A. IT seems unquesilonabiy true that
more banking capital Is what the South
wants. and the West as well. and why Is
Il that the two sectlons have not united
in a demand for the repeat Of the 10 per
cent. tax on State bank currency
b. The Southern States fought for
States rights, they fought TO the Anssh
to exhaustion. they surrendered, and,
wen. to farming. manufacturing and mer-
chandise. with such implements, tools
merchandise and currency rs they could
get, they were in no condition TO give
much thought TO the National Banking
act or 20 foresee how the 10 per cent
tax on State Bank notes would deprive
the South OF IN Abundance OF banking
capital After the rccOnstructiye period.
and national banks had been established
in all the Southern cities. the people re-
NAMED contentcd with the banking sys.
tenn first because the convenience OF hay-
ing bank note that would pass unques-
toned IN any part of the country. was
greatly appreciated. and the people did
not realize at what fearful cost to them,
such Il convenience was 10 he prspetuated.
They did not see that the national Bank
ing act, with that tax feature retained,
was costing them from Z % 10 per cent
per ansum interest. because IL prevented
the increase Of banking capital by means
of State Banks whose notes would have
/ been as good as National Bank notes, FOR
the reason that the day for wildcat
banks had passed, and the State Bank
currency would be current within the
State. and servo the purpose OF AL the
people at home. while travellers Ga small
proportion of the population could buy
exchange on distant cities at the trifiing
cost Of 80 cents I'm every Si0o.
4. shy would not the notes OF State
BANKS IN one State be current In another
state?
y. Because the bonds and other assets
OF tie bank to secure the notes would not
be well known In other States Tho notes
would be local currency. known only with
I'm the bounds of the State Just as United
states notes and National Bak notes are
local To the United States and will not
circulate I'm foreign countries
A. Besides being uncurrent I'm other
states. could any other objection De made
10 State Bank notes;
Il. None whatever. the security being
beyond question. The notes being I'M
current An other States would be an
advantage, inasmuch as they would
have TO be loaned out at home. and could
not be sent by express TO New York as
are National bank notes now. 20 be loan
ed on CALI deprving home people Of that
mucn accommodation.
A. What do you mean by loaning
money on calf
~, B guts q, 10 nufl tho
next II called for Tho Stock Board
transactions make that possible IN New
York
4. Would a proposition 20 repeal the
10 per cent. tax on State bank currency
be opposed by those interested In nation
al banks.
y. I'm all probability 81 would meet with
opposition from the New York banks
that have become great money power
through the working Of the national bank
system. The surplus money OF all the
national banks I'm the United States ac-
cumulates I'm the New York banks, and
they not only derive the profit from it's
use. but such accumulation OF capital at
tracts borrowers from every section Of
the country. greatly 90 the advantage Of
business men there and the growth or
the city.
A. without repeating the 10 per cent.
tax. could not the National Banking act
be so amended as Go offer the inducement
TO capitalists 10 establish banks wherever
needed. and thus furnish abundant bank
ing capital 10 the South and Wost2
y. The National Banking act could he
improved by amendments. or new act
might be passed. but the currency should
not be secured by United states bonds.
which the Government should redeem
when I'm funds and not keep outstand-
ing for banking purposes. state. city and
county bonds and coin might be held by
the banks as security for circulation
notes guaranteed by the Government TO
make them current Ina any state in the
Union But tho army OF bank examiners
and all the provisions 10 be- made for the
protection Of the Government would be
too expensive ami complicated merely
10 gain the convenience of uniform
currency The state bank currency
would be far more desirable The very
fact that il would not flow from home.
as National Bank currency docs mahng
money at times abundant I'm New York,
and scarce elsewhere. would render the
supplv OF money less liable 10 iuctuation.
The Government should have nothing TO
do with banking.
4. How Is the Government now con-
nected with banking
b. n has outstanding more than
$500 O00. 600 OF "greenbacks' and more than
Si50.O00.000 Of Treasury notes say az least
500 1000. 0O0 redeemahic I'm gold. and conse-
quontly wherever the balance OF trade Is
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