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

against us. that Is to say. whenever the
people Of the United States owe more
TO The people abroad than they owe TO
~. one Indebtedness must he paid In gold.
d. In foreign exchange, and when those
who have bills OF exchange for sale
charge more for them than the cost OF
shipping gold. the gold Is shipped, and
IL is obtained directly from the United
states Treasury. or Indirectly through
the banks by presentation Of green
backs" or Treasury notes. For the pur-
pose OF making such demand. the Govern
mcnt has undertaken 10 keep Sie' 100000 OF
gold IN the Treasury. but the balance has
boon drawn down below that sum again.
ana again. and though It has been re-
placed h. the sale OF United States bonds.
il is again below hat amount
A. Is the balance Of trade, as you term
Il, always against us?
r. l;ot always, but II is Liable 10 he so
because notwithstanding our cotton,
grain and other shipments. very large
proportion OF this couniry's Indebtedness
f. held abroad. and United States bonds.
as well as the bonds aai stocks of rail-
road and other corporations In our coin-
try, may ~ ut any time sent here for
sale. and any actual trade balance In
our favor. be thus overcome. Financial
disturbances abroad, "a we'll Is distrust
OF the ability ~ our Government TO sus-
tain gold payments In face OF the
100000 600 OF demand notes outstanding,
have caused the holders abroad OF United
States securities TO send them here for
sale. and that may happen q. any time.
and consequently no estimate OF how the
balance OF trade may be, can be relied
on.
4. What remedies would YOU suggest?
f.ttt AF
Southern and Western State. should pc
tition Congress to repeal the tax OF 10
per cent. and to authorize and direct the
Secretary of the Treasury 20 sell United
States bonds and redeem all the green
backs and Treasury notes outstanding,
and cancel them. The contraction that
might otherwise be feared would be pre-
vented by the issue of State bank notes.
Tho sale OF Government bonds. and re-
demp ton OF the Government obligations
should be gradual 10 give time for the
issue OF State Bank currency Thus would
I have the Government go out OF the bank
ing business But fear the national banks
would resist the repeal OF the 10 per cent.
tax, and advocate I'm lieu thereof amend
ments to the National Banking act.
\. Could the act be SO amended "a to
furnish the South aud West sufficient
banking capital?
b. Yes BY authorizing the banks TO
deposit State. city, county bonds. and
coin as security for their notes, and TO
provide for redemption. require one-thiru
OF the security for notes outstanding to
be in coin. and prohibit the allowance OF
interest by one national bank to another
on credit balances. To make banking
profitable and insure the establishment OF
banks wherever needed they should be
exempt from taxation, and bank stock In
the hands OF individuals should be ex-
cmpt from taxation.
4. Would IL be profitable for the banks
10 issue currecy so secured
B. IL would be, for although they would
lose interest on the coin held "a security,
they should be allowed to issue TO the
extent OF the market value OF the inter-
est bearing securities they would deposit.
The profit would be the interest received
on the bonds and interest on the cur
rency loaned. With banks established In
overv community no great amount OF cur
rencv would be needed, for transactions
amounting to more than s. would be set
tied TO very great extent by checks.
Consequently the aggregate Of deposits
would be large. and the banks profit
thereby increased. But the profit would
be greater If the deposit Of bonds could
be omitted
II the people in agricultural COMMUNE
ties where legislation Is so largely In
nuenced could only be brought TO see
the Importance OF eXemptnR from taxa
ton all capital invested i'm bank stock
in order 10 give 10 every community.
ample accommodation I'm loans. thus
stimulating industry, we would be. ineed,
prosperous people. VlRGlNlAN.
Richmond, Va. Dec. r. 1895.