The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-17
A TRUE NOTE.

true note in finance sounded by the
lanta. The South has been much more
prolific of financial heresy than Of
financial gospel, and yet we are able
to see at this date that the South was
not so desperately wrong after all. If
the desire of her people had been
granted, if the object for which her
representatives in congress struggled
year after year had been realized, it
is not too much to say that the nation
would have escaped entirely the move
ment for free coinage of silver, or else
that the latter would have been
confined within the narrow limits
that restrained the old green
lack PARTY. What the South
wal I'd was free banking by the re-
moval of the 10 per cent tax on state
bank issues. That was a plank of the
platform adopted by the National
Democratic convention in 1882 1t
seemed to many Democrats then that
Mr.. Cleveland pursued the wiser course
by ignoring this demand. 1t is rea-
sonably clear now that it was one Of
the errors to which the best and wisest
Of men are liable. Had that PROPOSE
ton been taken up and modified in the
direction of safety, the whole volume
Of currency agitation would have been
directed in that channel; and today
free banking, instead of free silver,
would be the watchword Of those de-
sirous of a radical change in the f1nan-
cial system.
Whatever objections one may en-
terrain against free banking. he
must admit that it would not be
open to the objections that lie against
the free coinage of silver, and that it
would supply a local currency for local
purposes where the latter would not
The party which styles itself the
sound money" party has felt obliged
The suggestion of Secretary Gage that,
under certain conditions, banks be al
lowed to issue unsecured notes to the
extent Of % per cent Of their capital,
is an entering wedge. 1t is, to our
mind, utterly inadmissible in its pres
ent shape, and the favor is designed to
be bestowed only upon a small class
Of banks but it witnesses the convic-
ton, at last become general, that
something must be done to provide an
elastic currency fitted to the needs of
the local community.
The Southern bankers convention
has dared to set forth bold and rad
ical proposition. 1t has the merit of
refusing to deal with compromises.
The plan that it offers is simple and
final It would take out Of existence
the various forms Of so-calIed money,
the experiments that desire for profit
and political necessity have injected
into our circulation, and leave in ex-
istence but two sorts of money. The
excellence in it's first two planks ought
to be universally admitted. These de-
clare that the banking business must
be taken out of politics and the gov
eminent out of the banking business.
1t would then retire and cancel the
greenbacks and make the money Of the
people consist of gold and silver coin
and a paper currency of bank
notes. It would have these bank notes
porations, but would extend the SUI
pervision Of the law and it's privileges
as we'll to all banks of the country.
With a system made thus comprehen-
sive and uniform, and with such safe
guards as could be thrown about 1t,
the Issuing Of notes would be turned
over to the banks as credit agencies
responsive to the demands Of trade, for
greater or lesser money volume, ac-
cording to the changes Of the season
and the fluctuations Of trade.
Toward such a scheme as this
thoughtful financiers of both parties
have been progressing steadily. They
are retarded by the fierce proposes
sions Of men on both sides, who have
not studied and do not understand the
real nature of money and Of credit.
Unfortunately, the question of note