The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-11-29
Discomfort in Southern and
Western States.
MORE CIRCULATION
Unequal Distribution of Ma
tional Bank Notes.
OUTLOOK FOR LEGISLATION
Nine Southern States With a PopuIa-
ton Exceeding Eleven Millions
Have Only as Much Circulation
as Little Rhode Island.
as Little Rhode Island.
Lsnecial 10 BaItImore sun. ]

as Little Rhode Island.
Especial to Baltimore SUM-
! Washington, Nov. 2G.-One OF the lead.
ling business men Of Richmond, Va, wha
was also a sound money Democratic
I leader in the last campaign, is now in
| Washington. He has made a careful
study Of the effect Of the National bank
system in the different sections Of the
! country, with some interesting results.
! Early in the campaign his attention was
! drawn to a statement in one OF the New
! York papers, coming from one of the
prominent fnanciers Of the country, that
! the sixteen Northeastern States would
positively declare for the gold standard,
while all the remaining States could be
classed as doubtful. Speaking of the
| matter to-day, he said:
! NOT THE SAME REASON FOR
Discomfort.
1T occurred to me that the Northeast
ern States, having all the money facilities
as the home Of the National banks, had
not the same reasons for discomfort with
| the existing monetary system as the re-
mainder Of the country. / therefore
went to the Treasury Department, OBJ
tanned from the Comptroller Of the Cur
rency a statement concerning the distri-
| button Of national bank notes, and sue
! ceeded in securing a very interesting
paper To present this paper to the
| country is to demand currency reform,
| if disaster is to be ayerted. I am CON
| vinced that the national bank note, as it
exists, according to the present system,
must either be removed as part Of the
! currency, or the banking laws must be
/ so amended as to allow a more equal
distribution of such notes For example:
UNEQUAL DISTRIBUTION.
New York, with 5,998,0OO population
and 36 electoral votes has $50, 700, 900
Of national bank notes Pennsylvania,
5,2JS000 population and 80 electoral
votes, has S27,00O,O0O Massachusetts,.
with ., 239, 900 population ana 10 electoral
votes, has 500, 100000 The Bryan
States. with 22,494,000 poulation and TIA
electoral votes, has S24101. 600. Rhode
Island, with 345,000 population and four
electoral votes, has $7,OO0,00O in bank
notes, while the nine Southern States.
with a poulation Of II, 703, 600 and 81
electoral votes, have but $7,030000.
This is in the face Of the fact that more
currency is needed in sparsely settled
communities than in cities with their
banks and systems Of credits Missis-
sippi, with ], 100000 population and nine
electoral votes, has but 100000 in bank
notes. The national bank act requiring
deposit Of United States bonds to secure
currency is about as useful to the Mis-
sissippian as if diamonds were required
as the security.
THE EFFECT ON THE FARMER.
To move his crop the farmer in Mis-
sissippi is compelled to get money from
the Northeast. This is so expensive and
makes the article so scarce that there
should be no surprise if he runs after a
cd0nskin currency, much less silver.
There is no need to tell him that the lat
ter is q heresy. Emancipate his credit,
remove the bank tax and then you can
reason with him. But we have little
hope Of the Republicans doing anything.
The increase Of their money monopoly
is more certain than the yield of a cotton
crop. The South would not give up her
staple and the North is not going to give
up her advantage, and 1900 is coming on
apace!
The people Of theNortheast think that .
the Southern people envy them their pos
sessions. This is not so. What we want
is chance to utilize our own possessions
in order to develop our own resources,
and to do this without having to appeal
for aid to the money centres"
A CHANGE IMPOSSIBLE.
One of the Southern Democratic Sena-
tors said to-day: Currency reform along
lines that lead to any change in the bank
ing system is at present practically impos.
sible | talked the matter over at the
last session with the Democratic mem
bers Of the Senate, and convinced myself
that they could not be united in support
Of any good banking bills. The extreme
advocates Of silver are opposed to any
system Of national banks, no matter what
securities are used as a basis for bank
note circulation. On the other hand the
sound money men are afraid OF the old
State banking system, and confound any
effort to better the banking facilities OF
the South and West with the effort to re-
store wildcat currency The truth u.s.
there is n great need for a campaign Of
education regarding currency reform
among the very people who would be
most benefited by more liberal banking
laws.
THE TAN ON STATE BANKS.
The absolute repeal of the tax on State
DdIAS is out OF the question, ana when
ever proposition is made to broaden and
liberalize the present banking system, the
prejudice against national banks, which
exists in the South and part Of the West;
is at once aroused I believe in the ne
cessity for a thorough reformation of the
system, but I do not anticipate it's carly
accomplishment. Certainly nothing will
be done at the coming SESSION, and I
doubt if the next Congress will accom-
plish anything The efforts of the silver
men viii be devoted to keeping alive the
silver issue, and they will probably con-
slider it to the advantage of their cause
to prevent all currency legislation.