The times. [volume] (Richmond, Va.) 1890-1903, 1896-04-30
STATE BANK CURRENCY.
A Southerners Way to Quiet Free silver
Agitation.

/ To the Editor OF The Mai. ana GNpIeSS'
Sir,-No one can read Mr.. Cariisles
great speech recently delivered at chi
| cago, exposing the evils OF free coinage
OF silver, without feeling at loss TO con-
lecture why IL IS that the leaders in the
most populous and wealthiest states OF
| our country do not open their eyes 10
the danger Of a majority vote In favor
| OF free coinage, and DO not beStir them
selves to ascertain why II Is that so
many people In the Southern States have
Joined In the cry OF Western slver-mine
owners for the free coinage OF silver
The South has no silver mines TO ac-
count for any such selfish cry but 1t has
a grievance, a very sore one, VIZ, the ~
per cent. tax on State bank currency,
that has dwafted its energies and kept
the people impoverished, and has caused
them TO cry for free silver or for any
thing TO change present conditions. not
at all understood by people generally.
even in the South. and perhaps unheard
Of North and East.
\ PLEA FOR REPEAL.
1t occurs to the writer that a warning
sent through the columns Of your paper,
so generally taken by the intelligent and
wealthy classes North and East, may lead
to some effort 10 repeal the unjust tax,
and arrest the evil of free coinage OF
silver that threatens 70 bring disaster
upon every section OF our common
country. The National Banking act.
with its 10 per cent. tax Oh State bank
currency, was passed during the war. to
force all State banks TO withdraw their
issues, and purchase United States bonds
as a basis for the issue OF currency. as
required by the act, which was framed
solely for the purpose of creating de-
mand for government bonds 10 enable the
United states 20 carry on the war with
out the further excessive issue Of rapidly
depreciating greenbacks. 1t was a wise
proceeding, but nevertheless in the nature
OF q forced loan. and was never intended
to be put over the country permanently.
one popular feature ca currency OF uni
form value throughout the country has
fastened the act upon the whole country.
and has blighted the impoverished sec
tons, as will hereinafter appear.
No country can reach a high state OF
prosperity where credit plays no part.
Without ample banking capital, every
enterprise must be dwarfcd. To increase
banking capital, banking must be made
profitable.
National banks were profitable under
the favorable conditions existing during
the war. and for several years thereafter.
before the great advance In the price OF
United States bonds, and they were prof
table In the larger cities throughout the
south but there was no home capital 10
establish them TO the extent required;
and since the advance I'm the price Of
United States bonds there has been no
such promise Of pr09t as 10 attract capt.
tai from the North and East consequent
" nothing is more marked throughout the
entire South than the insuffciency OF
banking capital. The rate Of interest
rules from 2 TO y per cent. and I'm many
places the highest credit is unavailable TO
obtain money even al those ruinous rates.
This want Of banking capital dwarfs en-
terprise. discouragcs Industry and pre-
vents development generally.
WANT OF BANKING CAPITAL.
Not only does the National Banking
law fail thus 10 meet the requirements OF
the South. but the much-oyerrated uni
fOrmlty OF currency enables the banks
10 keep their balances in New York.
where they send il at the mere cost of
expressage, 10 be loaned on call thus
receiving interest, without placing the
money beyond immediate recall. This
intimate intercourse between the banks
in every section of the country and New
York. the great monetary centre Of the
country, subjects the country banks TO in
nuences causing contraction at the finan-
cial centre that IS felt throughout every
state. This could not be the case If
every State had its own banking act,
even as it has its own State government.
Would you obliterate all State lines and
have one national government over all
this vast country Think of the vary
ing conditions requiring different laws for
the different sections. The absurdity Of
such a thing is apparent. If. then, II
be necessary TO good government 70 draw
State lines, and have State Legislatures,
and state courts, why should not the f.
nancial affairs Of a State require the same
local legislation and supervision? The