The people's journal. (Pickens, S.C.) 1891-1903, 1897-06-10
STATE BANKS OF ISSUE A REMEDY.
REPEAL THE TEN PER GENT. TAX
The Free Coinage OF Silver Would
Follow and Financial Rclief Would
Come,

Tho following letter. from Gen. M.
G.. Butler naG Snt.. given 70 the public:
WAsHit!urON, l.. g., May 27, 1897.
M. y. Hutchinson, Rock Hill, S. G.
My Dear Sir-Replying to yours of
the 10th instant, beg to say there
does not appear to be any present pros
pect Of financial reform from Congress.
The Mckinley administration is con-
centrating its energies on change in
our tariff laws, and seem to think
higher taxation will be the panacea
for our financial and business troubles.
While | do not concur in this view, 1t
is but fair to allow it reasonable time
to demonstrate the s0undness OF the
proposition.
| am more than ever convinced that
the best and surest solution OF our
financial problem would be the repeal
of the 10 per cont. tax on State bank
circulation, followed, as it would inevi-
tably DO followed, by the !ree and un-
limited coinage OF both silver and
gold at the present ratio. For this
while | was in public life, and thought
we had reached the goal when q plank
was put in tho Democratic platform in
1892 providing for the repeal Of the
| 10 por cent. tax.
| This plank was accepted and ap-
proved by the President, Mr.. Cleve-
| land, and Mr.. Carlisle, his secretary Of
the treasury, and some Of us urged
| these gentlemen to use their power
and influence in Congress in aid Of the
passage Of bill introduced to carry
out that pledge OF tbs Democratic
party. From some cause, which will
not venture to explain, their support
was not vouchsafed, certainly not in
any public manner.
My opinion is the gold standard men
defeated the bill because they feared
it would decentralize the ovcrshadow-
ing, almost omnipotont power they
exercised over the general government
us it would have done.
| regard the repeal Of tho 10 per
cent. tax Of far moro value to the well
fare Of the great masses Of the people
than the free coinage Of silver. The
present evil in our monetary SYSTEM
is the inadequacy in the volume of
currency and the inequality Of it's dis
tributiOn- the latter the greater of
the two OWLS. This inequality of dis
tributiOn would be corrected If we
could have local State banks Of issue,
under proper safeguards, and Just 50
much currency would be put out by
them as the local demands required.
1t has always struck me as very absurd
to suppose that any State would, or
could, permit wild cat banking" which
ls about the only argument over urged
against State banks of issue. No State
under our modern methods of transact
ing business, through quick cores
!, pondcnce by mail and wire, and the
vigilance OF the commercial and bust
moss agencies, could tolerate loose O
) "wild cat banking" for 4S hours, an,
10 al il.
q bank currency could not be made a
= sound and safe as the present Nations
~ bank currency.
y The act of Congress imposing Il ta
N on State bank circulation was intsnde
,, to destroy, and did destroy, Stat
q banks, and thus gavc to National bank
~ the right OF way, and the suprem
% control in the fiscal affairs Of the coul
II try. No revenue IL derived from i
II 1t is OF very doubtful constitutionnlit,
, and ought to be repealed whethC
u tho States grant banking charters {
not.
have never bocn enamoured of tin
> national banking system, but IL it is t
n be retained, it ought to be enlarged
and tho banks empowered to do wha
u every other national banking system
- the world Is empowered to do, viz
Issue what is called an "emcrgcnc
currency;" that is to say, increase the
volume of currency by certain an
we'll regulated percentage, to me-
d just such conditions as now and (,
III s0ino time past, have onvironed II
'l- business interests Of the country. I
en- stead OF increasing tho volume of Il
currency under existing condition
TX the tendency is to contract, and thor
or by increase financial distress. In
it growing, developing country like ou
vo there Is constant demand for
ro augmentation Of the volume Of none
wv to mect the requirements of tho lcgi
On mate business operations. There is
s. need for undue imitation or the rec
ID less issue Of fiat, irredeemable cure
AS cy, but steady, safe, prudent enlarg
70 ment is admitted by men Of all classC
Of aud with widely divergent financi
.. views.
ID I have said the free coinage of silv
:, would inevitably follow tho reopenir
'r These banks would absorb every dc
| lar Of coin, both gold and silver,
u security for their circulation and
l. maintain whatever reserve the la
. mig ht require. For domestic purpose
d as q domestic currency, silver is tods
as good as gold. Silver only become
d embarrassing whom transactions al
3 had with foreign countries. Like go
1t passes only for its bullion value
d foreign countries, but at homo it
IT taken ut par OF its present weight an
/, fineness. | say, therefore, for all d.
If mestic purposes, silver is as good {
y gold, and there is no reason why
should not be admitted to free coinag,
|. and used by local banks rs q REDEEM,
I tiOn and reserve fund.
}. With local State banks of issu,
8 their currency would remaic, in q larg
+ measure, In the communities wher
. issued, available, and in reach Of ever
man engaged in business, obtainabl
, on such terms as each mans cred
r woild entitle him to- There woul
, be not tho slightest difficulty in usin
! the State bank currency in interstat
, transactions and exchanges. Stat
bank clearing houses could and woul
be established through, and by whic
The standing and credit OF every ban
could, and would, be ascertained in a
| hn1 ~, ti.sN<N -, knl> l. A. L