Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-07-26
National Banks, Grecnbacks, and
senator Daniel.
RICHMOND. VA, July

KlCiMOND, VA, July -, 1870
To the Editor OF the Dispatch:
II has been shown repeatedly Of late
that under our present financial system
the Southern States have been impoyer-
ished from year to year with distressing
regularity. while the States Of the East
the creditor States OF the UniOn-have
been growing enormously rich 1t has
also been demonstrated that this result
has been due in great part TO the demone-
tization Of silver and the constantly in
creasing value Of gold. which has become
the standard Of value for all of our
money. But this Is nGc the sole cause
VI all Of our troubles We have been
the victims OF circumstances too complex
In their nature for explanation In an ar
dele like this.
In 1892 Senator Daniel delivered a very
able speech in the Senate OF the United
States on the bill defining trusts" and
options" and imposing tax on dealers
therein. Criticising with some severity
the disposition 10 abuse the taxing power
OF Congress. he urged the repeal OF the
l0-per-cent tax on the circulation OF
State banks because the conditions
that seemed to demand the enactment OF
such a law at the time no longer had an
existence In the country. Quoting from
the report of the Comptroller Of the Cur
rency. he presented 10 the Senate a ta-
bic. which was Incorporated in his speech
AT the request OF several southern sena-
tors, showing how injurlously the people
Of the South were affected by the opera
ton OF our national banking laws. The
table il a striking one and shows what
Senator Daniel termed the stress OF cir
cumstances which on our part calls for
ts repeal" Every farmer South. every
laborng man, every banker every man
engaged In mercantile pursuits OF what
ever nature ought 10 read the speech.
The table shows the aggregate capital,
surplus. undivided profits, and individual
deposits Of national and state banks,
loan and trust companies, savings and pri
vate banks in the United States. IL also
shows the average per capita Of these
resources In each of the States mentioned.
/ quote from the speech Of Senator Dan
lei: Beginning with New England we
md that in Maine the total available
loaning capital is SSl000,O00 or a per cap
tia OF sl22.j5 that in New Hampshire
there is per capita Of S253; In Vermont
a per capita OF Sl2} In Massachusetts a
per capita of 1913; in Rhode Island 1851;
in Connecticut {96l: IN New York s2l2.
When you come 10 the Southern States
you find that the per capita OF available
than a tenth or twelfth Of what IL is
in these other communities. For instance
| find that In my own State. Virginia,
the total lOanable capital is Si20oD,000, or
4 per capita of SIS; that in West Virginia
the per capita is $lS26; in North Caro-
lima 1t is only s6i7; I'm Alabama it is $685.
In Mississippi il is Ss9S; in Arkansas.
$3.50: in Georgia, $l2lL In almost all
Of the Southern states II bears very in
significant proportion 10 the amount held
in the Northern States. which have had
the advantage OF circumstances which IL
is needless for me to relate here"
II will be seen from this statement fur
nished by Senator Daniel that the aver
age per capita OF money in the seven
Northern States named Is s2i5, while the
average in the seven Southern States
named is only sl2.
In the same speech. as al additional ar
gument in favor OF the repeal Of the 10
percent tax on the circulation Of State
banks, an argument too in which the
whole country is interested, Senator Dan
lei quoted from the report or the Comp
troller Of the Currency TO show that the
circulation OF the national banks them
selves is decreasing regularly year by
year; and, OF course, the money Of the
people TO the same extent.
In View of these facts. IL would seem
that it does not require the foresight
OF a very great statesman TO see that
some change must be made. and that
quickly, in our financial system. unless
we propose TO try the experiment OF get
ting along without money.
Some years ago senator Daniel. an
tclpating the condition with which We are
threatened to-day-the disappearance OF
the circulation Of the national banks
proposed to issue greenbacks TO take
the place OF this curr ncy as 1t should be
destroyed. and. since that time. the Sen
ate has voted for such "A measure. but
for some reason, which | am unable TO
recall just now. IL failed to become law.
This is the head and front of his offending
as a "Greenbacker." an epithet applied TO
him by so many exceedingly young gentle
men who imagine they are fnanciers. lie
has never voted for the unlimited issue OF
greenbacks or any other paper money.
1t would be well for Virginia, well for
the country. II we had In the Congress
OF the United States more OF such Green
hackers" in the place OF the "Cuckoos'
who have no claim to the support OF their
constituents except the fact that they
have had so many OF them appointed
fourth class uoSfmasters NiRGINIAN