The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1897-06-08

sNh "a WV Shto
party. From some cause, which | will
not venture to explain, their support
MAS not v~oucnsafcd, certainly not in
any public manner.
My opinion is the gold standard men
defeated the bin because they feared
~ would decentraliZe the overshadow-
ing, almost OmnipotenG power they
exercised over the general government,
us IL would have done.
l regard the repeal of the 10 per
cent. tax of far more value to the well
u OF the great masses of the people
than the Tree coinage of silver. The
present evil In u monetary system
is the inadequacy in the volume of
currency and the inequality of its dis
tributlOn- the latter the greater Of
the two evils. This inequality Of dis
tribution would be corrected If we
could have local State banks of issue,
under prOper safeguards, and Just so
much currency would be put out by
them as the local demands required
IL has always struck me rs very absurd
to suppose that o State would, or
could, permit wild cat banking" which
Is . the only argument ever urged
against State banks Of issue. No State
under our modern methods OF transact.
ing business. through quick corres-
~pondence by mail and wire, and tho
vigilance Of the commercial and bust
ness agencies, could tolerate loose or
wild cat banking" for As hours, and
there Is no valid reason why State
bank currency could not be made as
sound and safe rs the present National
! bank currency.
The act Of Congress imposing a tax
on State bank circulation wac intended
to destroy, and did destroy, State
banks, aud thus gave to National banks
the right of way, and the supreme
control in the fiscal affairs of the cOun-
try. No revenue is derived from it..
1t is Of very doubtful constitutionality,
aud ought to be repealed whether
the States grant banking charters or
not.
| nave never been enamoured of the
national banking system, out IL it is to
be retained, it ought TO be enlarged,
and tho banks empowered to do what
every other national banking system of
the world is empowered to do, viz :
Issue what is called an emergency
currency that is to say, increase their
volume OF currency by certain and
well regulated percentage, TO meet
just such conditions as now and for
some time past, have environed the
business interests Of the country. In
stead Of increasing the volume of the
currency under existing conditions,
the tendency is to contract, and there
by increase financial distress. In Il
growing, developing country like ours
there Is a constant demand for an
augmentation Of the volume Of money,
to meet the requirements OF the legiti-
mate business operations There is nc
need for undue imitation or the reck.
less issue Of fiat, irredeemable curren-
cy, but a steady, safe, prudent enlarge.
ment Is admitted by neu of all classes,
aud with widely divergent financial
views
have said the free coinage Of silver
would inevitably follow the reopenine
Of State banks, and for this reason
These backs would absorb every dol
lar Of coin, both gold and silver, at
security for their circulation and tC
maintain whatever eserve the law
mig t require. For domestic purposes
as a domestic currency, silver is today
as good as gold. Silver only becomes
embarrassing when transactions are
\ had with foreign countries. Like golC
1T passes only for its bullion value II
foreign counGries, but at home it i,
taken at par OF its present weight anC
ineness. | say, therefore, for all do
nestle purposes, silver is as good a,
gold, and there is M reason why i
; should not be admitted to free coinage
auu uSeu DS local BANKS as u rGuemD
ton and reserve fuLd.
With local State banks Of issue
| theircurrency would rcmaic, in q larg,
measure, in the communities where
, issued, available, and in reach OF ever
man engaged in business, Obtainablt
on such terms AS eaCh mans crcdi
woIld cntitle him to. There would
be not the slightest difficulty in using
the State bank currency in interstat,
l transactions and exchanges. State
bank clearing houses could and would
be established through, and by which
; the standing and credit OF every hanl
could, and would, be ascertained in al
hours time by telegraph, telephone 81
! other medium OF quick communication
SO that the holder Of the bills OF an,
bank could be advised OF their sound
ness.
When it comes to the matter OF for
; eign exchanges, they could be regulat
ed and settled as they now are. NJ
advocate OF the State bank system pro
poses, SO far as | am advised, to inter
u iere with the present national banl
} currency. 1t might be affected b,
competition with State bank currency
but in that competition, it ought to b,
willing to take its chances.
am one OF those who believe the
States are as capable and well qualified
to manage their own currency as is the
national government. | believe thai
Mr.. Justice David Davis in the Fennt
case that the right to charter q bank
Is as much an attribute OF sovereignty
as the right to charter q railroad OF
any other corporate power, and tina
when Congress passed the act during
war, imposing a tax Of 10 per cent OF
State hank circulation, thereby destroy
ing them, it was the severest blow evel
aimed at the sovereignty and self.sus
tanning powerof the State. Consequent
ly | have never been able to understand
how anybody calling himself Demo
Graf, could hesitate in urging the re.
pea Of the Federal law. This, O
course, Is only the political aspect OF
the question, but it has merit enough
on economic grounds to Justify it's re
peal.
The party that will press this repeaI
to a successful issue will receive. as il
will deserve, the approval of the
American people, and do more for their
happiness and prosperity than by any
other means.
While a member of the Senate /
made two speeches in advocacy of the
repeal. and il you care to examine the
subject further, would refer you to
than.
In n Of these speeches | elaborated
at some length the influence OF the
Scotch system of local banks of issue,
and showed, as think bevOnd ner.