The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-19
MORE FLEMBILITY IN MONEY.
CHARLOTTE MANUFACTURER
WANTS NEW BANKING LAWS.

|
The Present System Served Its Pur-
pose With Excellent Success, But
Has OutIiVed Its UsefuIness-The
Writer FaVOrs the walker and
baltimore PIans-The Land Mort
gage Bank plan For the south Not
Favored.
Baltimore, Md, March I'D. A. Tomp-
kins, leading manufacturer of Charlotte.
| N. c., contributes to this weeks Manu-
facturer's Record an article in advocacy
of sreater hexibility in banking methods.
| He writes: Originally the present ma
tional banking system was devised to
put banking capital in large quantities
at the disposal of the government for war
| purposes. 1t served the purpose with en-
inent success. For banks of deposit and
| discount the system is stil most excellent.
| The conditions which made IL entirely
| satisfactory during the war and in the
period of prosperity succeeding the war,
have so changed that it is no longer suit
| ed to banks of issue. Conservative judg-
ment calls for reform which shall cor
rect this deficiency without sacrificing
| anything of the soundness of money or
the safety of banking. In order to ac-
| comphsh this il is generally conceded that
i. The money of this country shall be
kept as good as that of any nation. There
| fore, ii must be redeemable in gold
- That the national government must
| itself retire from any participation in the
| banking business.
%. That the national government shall
l G1f lea t1,,s -.
| quire its redemption in gold on demand
and become responsible for its value.
u. That the issue of this sound, re-
| deemable and guaranteed money shall be
proportionate to the demand of legitimate
| trade, ana no more
IS. That the controller of the currency
| or other authorized government agent or
| agents shall have discretionary authority
| TO constrain the extent of money issued
| to the limits of legitimate trade.
"All proposals to bring about the re-
| form rest on the principle of permitting
| the issue of bank notes upon the assets
| of the banks, instead of upon the basis
| of government bonds"
Mr.. Tompkins believes that the most
| promising laws formulated seem to be
that of Hon. j. H. Walker, chairman of
| the committee of banks and currency,
| and that of C. c. Homer, known as the
Baltimore plan" He says, after anal
TENS would give entire relief from pres
ent difficulties and troubles provided they
| could be put into effect without too much
| disturbance to banking and business in
| terests.
1T has been suggested that a system of
| land mortgage banks be started for the
| benefit of the south and west If the
| needs of these sections were reduced 20
| a point where 1t was necessary to mort
| gage the land to give the people cur
| Tency, 1t would be most unhappy con-
| dition.
The south has abundant resources out
| side of it's landed interest. 1t is to-day
| in better condition than the west because
| its lands are not mortgaged. 1t is not de-
! sired that they shall be. The lands of
| Kansas are mortgaged to the extent of
| about 70 per cent. of their assessed value;
those of Nebraska, Y per cent; those of
| New York, for per cent; those of North
| Carolina, 10 per cent; South Carolina, 10
! per cent, and of Georgia Z per cent What
| is desired for the west and south is not
| better facilities to mortgage land, to con-
sumo the capital of the people, but only
a sound currency-a medium of exchange
| for manufactured products.
1.-The prevalent ldea," he continues, "of
permitting small banks, with less than
$4,000 capital would give no relief. 1t
| is worthy of considering whether the min
| imum capital might not be increased to
| 10000 to an advantage. 1t is useless for
| the people to have to pay management
expenses for a lot of small banks if larg-
| er ones will furnish the needed accommo-
dalton, With larger capital. better and
| cheaper management can be had and the
general banking business be made safer.
The advocacy of free silver in the
south is simply a manner of interpre-
| tating a need for some circulating me-
dunn that will circulate. 1t cannot be seen
| that silver could not be used to advan-
tage in the absence of any other money.
| Call it cheap money, and the answer
comes quick that cheap money is better
| than no money at all. What is wanted is
a currency for current use to handle and
exchange the products of labor not fiat
money to invest or to use without work.
While there is no special infatuation in
the south for silver, there is no great
dread of the consequences of it's use.
With the introduction of a good money
system the agitation of the subject would
quickly die. If the present status contin-
ues, the silver sentiment will grow rap
idly
mo country could be more injured by a
fiat money of uncertain value than the
south. It would be deplorable to reach a
condition where the cotton crop could be
bought with a deprecated currency. to
be sold abroad for good money. The far
mer would be sure to suffer most from
any uncertainty of doubt about the value
OF money. The experience during the war
IS not forgotten, and will not be forgotten.
THE south wants no imitation. She has
no need for better facilities for mortgaging
land. These are too good now. She needs
banking facilities for furnishing the money
to buy bagging and ties to prepare cotton
for the market, and 10 be paid back when
the cotton is sold; to buy cloth, coffee,
horses, mules. fertilizers and other need
full things in summer, and to be paid
back when the crop is sold; to
serve as a medium of exchange of cloth
for food and of food for cloth between
the factory operatives and the farmer.
When these two stop trading, CONNER
cial cities must suffer. The real reform
must bring into the banking system a
feature which will make the issue of notes