Birmingham state herald., 1897-03-19
\ LEADING MANUFACTURER Of Charlotte, N. G. Discusses the
 Banking Question. SAID TO BE AN EXPERT He Advocates Greater FIexibility In the Meth ods Now In Operation Must
 Be Redeemed In Gold.

b2lllDlOFe, N1Q., 1o.--sAA. A% A Tompkins, leading maufacturer of Char lotte, N. C., contributes to the Manufact- ure.s' Record this week an article in ad- vocacy of greater fiexbility in banking methods. He writes:
 "Orginally the present national bank ing system was devised to put banking capital in large quantities at the disposal of the government for war purposes. It served the purpose with eminent success For banks of deposit and discount the system is still most excellent. The con1l- lions which made it entirely satisfactory during the war and in the period Of pros perity succeeding the war have so changed that it is no longer suited 10 banks of issue. Conservative Judgment calls for a reform which shall correct thls deficiency without sacrificing anything or the soundness of money or the safety or banking. In order to accomplish this IL is generally conceded that:
 ''1-The money of this country shall be kept as good as that of any other na- tion. Therefore 1t must be redeemaple in gold. itself retire from any participation III the banking business
 "3-The national government shall su- peryise the issue of all paper money, re- quire its redemption in gold on demand a
 A That the issue of this sound, re- deemable and guaranteed money shaH be proportionate to the demand of legit- innate trade, and no more
 '.5. That the comptroller of the cur rency or other authorized government agent or agents shall have discretionary authority to constrain the extent or money issued to the limits of legitimate Grade.
 "All the proposals to bring about the reform rest on the principle Of permit ting the issue of bank nol.es upon the as sets of the banks instead of upon the basis of government bonds.
 MT Tompkins believes that the two most promising plans now formulated seem to be that of Hon. J. H. Walker chairman of the committee on banking and currency, and that of MT. c. c. Ho- mer. known as the "sBaltimore plan"
 He says. after analysing the plans "Either of these systems would give en- tire relief from present difficulties and troubles provided they could be put into effect without too much disturbance to banking and business interests.
 ''Tt has been suggested That system of land mortgage banks be started for the benefit of the south and west. If the needs of these sections were reduced to point where 1t was necessary to mort gage the land to give the people cur rency, it would be most unhappy con dition.
 "The south has abundant resources out side of it's landed interest. It is today in better condition than the west because its lands are not mortgaged. It is not desired that they shall be. The lands of Kansas are mortgaged to the extent of 75 per cent. of their assessed value; those of Nebraska 72 per cent; those of New York AZ per cent; those of North Caroli- ma 10 per cent; those of South Carolina 10 per cent. and those of Georgia ' per cent.
  south is not better facilities to mortgage land, to consume the capital of the peo- pie, but only a sound currency--a me dum of exchange for manufactured pro- ducts.
 "The prevalent idea" he continues, "of permitting small banks with less than $50,000 capital would give no relief. It is worthy of considera tion whether the min imum capital might not be increased to S100,000 to an advantage It is useless for the people to have to pay management expenses for lot of small banks if larger ones will furnish the needed ac- commoda ton. With larger capital, bet ter and cheaper management can be had and the general banking business be made safer
 "rhe advocacy of free silver in the south is simply manner of Interpreting a need for some circulating medium that will circulate. It cannot be seen that silver could not be used to advantage in  cheap money and the answer comes back, 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 good money system the agitation of the subject would quickly die. If the present status con tinues the silver sentiment will grow rapidly.
 "No country could be more injured by a fiat money of uncertain value than the south. It would be deplorable to reach condition where the cotton crop could be bought with a Appreciated cur rency. to be sold abroad for good money. The farmer would be sure to suffer most from any uncertainty or doubt about the value of money. The experience dur ing the war has not been forgotten and will not be forgotten.
 '.The south wants no inflation She has no need for better facilities for mort gazing land. These are too good now. She needs banking facilities for furnish ing the money to buy bagging and ties to prepare cotton for the market, and to be paid back when the cotton Is sold 70 buy cloth, coffee, horses, mules, fertil- izers and other needful things in sum- msr, 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 operative and hhe farmer. When these two stop trading, commercial cities must suffer. The real reform must bring into the banking sys- tenn a feature which will make the issue of notes dependent uDon and proportion ate to the demands of varying commerce.
 Tn any satisfactory system all notes must he redeemable in gold at some cen- tral point, as well as over the counters of the issuing bank"