The daily morning journal and courier., 1896-07-15

tional banking system was war measure skilfully devised for the pur- pose of floating United States bonds when there was no market in which to sell them. The system compelled banks to hold them as a basis for circu- lation. State banks were killed by tax ing their circulation out of existence and thus forcing them to reorganize as national banks. The very few banks which still cling to their state charters are not banks of issue, The only paper money in circulation is either directly issued by the United States, or is guar anteed by a deposit of United States bonds, That the system has great ad- vantages and conveniences is self evl- dent The credit of the United States is back of 1t. The solyency of each bill presented is not a matter of inquiry, The government stamp gives full assu- rance. But there are disadvantages which counterbalance the benefits. No one system of banking can possibly be applied to so large a country With l equal advantage to every part. Where there is but one system there will ne cessarily be but one financial center. To it money will be constantly drawn; to it application for loans must be con- stantly made. At the center money will be plenty; away from it money will be scarce. Money may be worth but two per cent in New York and at the same time worth twenty per cent in Texas. New and growing states need plenty of money with which to de- | velop their resources, The only possi- ble way in which they can obtain it ea- silly is through the medium of state banks. The constitution prohibits states from making anything but gold and silver coin tender in payment of l debts," but that is the only restriction | imposed on state banking. Remove l the tax on the circulation of state banks and each state will be able to supply itself with all the paper money needed. If state choose to base its l paper money on silver, on copper, or anything in short, there is nothing in | the constitution to prevent its doing SO. Citizens of other states, and some of its own citizens perhaps, may refuse to "e- ceive the bills and the banks, to remain l solvent, must be prepared to redeem them in legal tender whenever legal l tender is demanded But so long as | the bills are current they will answer state purposes and supply the want so I keenly felt.
 The only argument openly presented in opposition is the argument of con- l venfence. It would be so inconvenient to be obliged to scrutinize every bill of fered in payment A return to wildcat banks, so-called, is presented as dire l full contingency. But which, pray is the more to be dreaded, an occasional wildcat bill or universal wildcat sill yer? There seems no alternative, The true reason for the opposition is not hard to find in the light of the trusts and combines of recent, legislation
 The money power behind the national banks is too strong and too united to be overthrown.
 I This contribution has already exceed ed the limits of a newspaper article. Letgi be recognized that this is no time for party complacency or party accusa- ton. As the press is the greatest pow CT in the country, let its supreme duty
 be in the present emergency to ascer- tain the exact truth and to present il clearly and tersely. We are all in the same boat and the boat is in danger of shipwreck. D. CADY EATON!