The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1895-02-27

National DankS-nlOSG dUly anu SpeCl-
ouslv presented in a memorial by the
country bankers to Earl Grey and
Lord Altherpe, June u, 1898, see Gil
bert 'On Banking" vol. 1, pages 1O7,
40. III and 112, were that every
man possessed ofpractical information
who understands the subject knows
that by giving the exclusive circula-
ton of notes to the Bank of England
abundance will be created in the money
market. and in the great commercial
notwithstanding the price of pub
lie securities and stimulating the pro-
duce market-while unexampled scar
city will be the consequence in the
country, producing embarrassment
among the cultivators of the soil and
allwho are dependent upon them y y y
If all bankers should be compelled to
supply their customers with the notes
of the Bank of England, charge of Z
per cent. for the interest OF loans to
graziers, farmers and dealers in agri-
cultural produce would not remunerate
the country bankers so well as 4 or 5
per cent. does now upon the present
system = From these premises
it results that the free application of
labor to land would be prevented, the
cost of cultivation enhanced, markets
and the sale of produce 'impeded and
the pursuits of agriculture deeply in
jured."
With all the claims which the Bank
of Enuland has upon the government,
as its creditor and financialag and
with all the influences arrayed on its
side, which arise from the power and
prestige of great wealth, it has been
unable to prevail upon the govern
ment to sacrifice the rural sections by
taxing out of existence the country
banks of circulation and to give it a
monopoly of note issues. The Scotch
maintain their system of note issues,
restricted to adequancy, and even in
England, an area less in extent than
the State of Georgia, they have a dou-
BILE currency-the notes of the Bank of
England and the notes of the country
banks-the circulation of the former
convertible into gold to supply the
great channels of trade and conduct
foreign exchanges; the circulation of
the latter convertible into the notes of
the Bank of England to sustain local
industry in therural districts and more
remote sections. If in a country less
in extent than the States of Georgia
and Alabama it was considered indis-
pensible thatScotland should have her
seperate system of finance and emin-
emily necessary in England, less in e1-
tent than the State of Georgia, that
they should have country banks of cir
cul#!ion to supply the local demand
of the agricultural sections, how much
more necessary that this country, COM
posed of forty-four great States, and
comprising a aterritory nearly equal in
extent to TIE whole of Europe, that we
should have local currency-a cur
rcncy which will not centrallze, but
remain at home to support the pro-
ductive industries of the rural sections
and that could be directly loand to the
farmers at one interest charge.
TO one who has Investigated this
question and has no pride of opinion
or selfish interests to struggle against,
but merely looks to the provision of
wholesome system of finance, which
will impartially promote the interest
of all classes and rebound to the vel
fare of the public, the question hardly
seems to admit Of argument. But If
the correctness of the arguments pres
ented by the country bankers in 1893
to the Chancellor of the Exchequer and
the Lord of the Treasury, which could
not be satisfactorily answered by. all OF
the ability at the command of such
powerful organization as the Bank OF
England, to the effect that a national
circulation will congest in the great
commercial emporiums and flow free
ly at reasonable interest only, in the
great arteries of trade, while unex-
ampled scarcity will be the consequence
in the country, producing embarrass-
ment and discomfort among the cultl-
vators of the soil and all who are de-
pendent upon them" is not admitted,
they can be amply confirmed by the
experience in this country with the
notes of the Second Bank of the United
States and tie direct and positive opsr-
ations of an army of the most eminent
statesmen who figured in.public life
from 1912 to 1S4O. This tendency Of
its issues to congest at the great trade
centers ofthe Northeast was discovered
after the establishment in 1916 of the
Second Bank of the United States as
early as 1920. For we find that in De-
cembcr of that year memorial was
presented to Congress by the President
and directors of the bank, complain
ing that as these notes were current
everywhere and everywhere receivable
in payment of government dues, they
flowed continually to the great centers
of receipts and disbursements, and left
the South and West without a nation
al circulation; and to remedy this evil,
they petitioned Congress to SO amend
the charter as to make these notes re-
ceivable only for government dues at
the branch banks, where they were
made payable, except at the office IN
Washington. The purpose of this
amendment is perhaps more plainly
stated in recommendation of a SINH
lar nature from the Secretary of the
Treasury. Mr.. VIM. H. Crawford,
in the same year, from which quote:
THE effect of this modification would
be to make the notes of the offices of
the Bank of the United States, except
the Office in this district, local cur
rency, which will enter and continue
in the local circulation of the State in
which they are issued" This amend
mnnt was refused hv CONGRESS and