The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-13
THE CAUSE GROWS.


rrhera are neriods when The Times
feels a little discouraged In its bght tor
state banks, but then again II meets WIN
evidence that it's fight is telling ana IL
cheers ND and seizes its weapons with re-
uewed courage. 1t is in one OF It's cheeriui
moods this morning.
Mr. Thomas jefferson Coolidge, Of Bos-
ton. has submitted q plan for currency
reform TO the Washington Monetary Com
mission. and in It he tells the commission
,hav must recommend Congress TO give
a., raonla their state banks. Hear him.
lilo says:
'The next point TO take up Is the e' .se
-, ,rhera a. a great demand in the
VNest for currency. The farmers seem 10
shiny that they would be better of II they
conld have hills from banks in their neigh
horhood. and the demand is 50 great that'
althongh I think IL is based on false pohu-
col economy. Il would be advisable 10 yieid
40 A.. 10 do this / would take on the ~
per cent. tax on the state banks ana
allow them TO issue currency, PROVIDED
chat IL was OF an entirely different color
and form from the national bank notes
This currency would not pass except III
10
and If those banks failed the trouble
would be entirely local. and ii would not
affect in the least the value and standing
OF the national bank notes. / would
leave Abe field open to small State banks
by not issuing any charters for national
banks Of less than 100000 capital
Mr.. Coolidge is one OF Bostons most
eminent citizens. and 1t is all the better
for him that upon his mothers side he is
a virginian.
We have a great respect for Mr.. Cool
idge. and we don't care much by what
plea he gets us our state banks so that
he gets them for Us. But when he says
that our demand for them Is based upon
false political economy, that Is only be-
cause Mr.. Coolidge has not studied politi-
cal economy deeply enough 20 understand
It. If he will read the address made By
William J.. Royal last December to the
Banking and Currency Committee of the
House OF Representatives, and will then
read the essay Of Herbert Spencer upon
tire subject. 10 which Mr.. Royal refers, he
Will get his mind opened much wider than
81 now Is. and he will see that state
banks OF Issue rest upon the real and
sound principles OF political economy.
Mr.. Royals address was published by the
House OF Representatives in a volume en-
Titled Hearings and Arguments Before
the Committee on Banking and Currency
OF the House of Representatives. Fifty
fourth Congress. First ana Second Ses-
sions. 1861" at page us. 1t is in all the
public libraries
Mr. Cooldges suggestion, that the state
banks should be required to print their
notes upon paper Of different color from
that OF the national banks, and that tho
notes should be OF a different size. is an
admirable one. Then none of the timld
ones who now want protection would run
any risk Of being fooled. Those Who
wanted State bank notes would take them.
and those who did not want them could
let them alone. but In few years every
body would take them indaerently along
with gold coin.
The New York Journal Of Commerce,
100 IL rapidly being converted. In Its
issue OF last Thursday 1t said IN an edi-
torial article the following:
"These considerations seriously suggest
the question whether II would not be
necessary as well a prudent statesman
ship, 90 cOncede 10 the incorporated State
banks the right OF issue upon rigidly safe
guarded conditions. Is there no possible
conservative plan by which. while extend
ing 20 tho national banks the bond basis
OF issue Mr. Gage suggests, both they and
the state institutions may be permitted
10 put out circulation upon some other
basis OF guarantee than Government
bondag II men could divest themselves
OF prejudice against state banks, on the
one hand. and preJudices I'm favor OF the
national system on tho other il would be
found an absolutely conservative policy
TO permit both classes OF banks TO issue
against first lien on their assets and on
the shareholders liabilities. up to an
amount equal 10 90 per cent OF their
paid-up capital This delicate part Of the
problem would thereby be solved but we
doubt much 81 It can be In any other way.
Besides providing an important new
source OF note issues, this enfranchise-
menf OF the State banks would prove an
effective means Of conclliating that very
large disconnected class In the West and
south. who are preJudieed against the
national banking system and disaffected