The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-01-22
Mr.. FRIES'S DEDUCTION
SOUND MONEY VOTE FOLLOWED
COTTON FACTORIES.
GOLD STANDARD ESTABLISHED HERE
Hon. Joseph Bryan, of Richmond, BIames Pre
sent Lack of Credit Facilities Upon tie
Abolition of State Banks as They
We're Before The War.
We're Before the War.


Boston. Mass, Jan. 21.-The Massa-
chusetts Reform Club listened to two
interesting speeches tonight on ''the cur
rency condition of the South" by Hon.
John w. Fries, of North Carolina, and
Hon. Joseph Bryan, of Virginia.
Mr.. Fries, who was Il member of the
Monetary Commission, received hearty
welcome. He said:
In the last election, the Republican, 0r
sound money vote of North Carolina
was thrown in the middle and western
parts of the State, where are located
the cotton industries. now considered to
be the greatest competitions of Massa-
chusctts. The silver men in the South
are sure of their position and feel sure
that that money, if once brought into
existence, would be Il cure for all their
many ills.
Speaking of the work of the Monetary
Commission, Mr.. Fries eaid that the gold
standard was found established not only
in this country, but iii every other imp0r-
tant country in the world.
Mr.. Bryan outlined the situation i'm the
South with reference to currency reform
and the needs of the South i'm connection
with the plan of the Monetary Commits
sion. He took Virginia as a criterion
and compared her condition at the out
break of the war with that which OBJ
tained after the surrender of App0mat-
tox with the idea of showing why the
conservatism i'm financial matters for
which the Southern States were respect
ed in the earlier days, had been thrown
aside
I'm 1860" said Mr.. Bryan. ''the old
State of Virginia. which included West
Virginia. had a population of about L.
100000 white people and 100000 no.
gr0es. nearly all the latter being slaves.
Agriculture was the chief occupation.
The negroes had no part whatever in
any Of the business affairs Of ;he State
and being under civil disabilities. lived
upon the plantations of their masters
who represented them in every respect.
The banking facilities which this million
of white peonle had wera of the most
satisfactory character. and no complaint
was ever heard about lack of money
in any part of the State. This was ac-
compliShed througb the banks which
We're chartered by the commonwealth
and in some of which the commonwealth
had an interest. They had liberal an
th0rity for establishing their branches
and most of them issued their notes a.
@ainst their assets. the limitation being
that they should never issue notes for
a greater amount than FIVE to Cne for
specie in their vaults.
''The State then bad S1G.000,000 of
banking capital and $10,000,000 or cir
culatiOn. a circulation confined to Nir-
ginia. The banks had in their vaults all
the specie that was requisite to redeem
any of these notes. A more contented
and happy people would re almost inn
possible to imagine
When the Confederate soldier return
ed to his home when the success of the
Union armies had assured the payment
of every obligation of the United States
and enormous sums had been realized by
those who had taken the bonds and notes
Of the government which had been issued
to vindicate the integrity of the Union.
the Nlrginian found Il dcsolate home and
absolutely worthless currency. and little
left 20 him burt the soil of his beloved
State. and the blue canopy of heaven.
'At this very time when the use Of
credit would seem to have been almost
necessary to existence. tint national bank
act was further amended by THE passage
of the ten per cent act so as to- ,aIt the
final eXtinguishment upon all State bank
issues. AS there were no United States
bonds held i'll Virginia. it was impossible
for her people to comply with the cOndi-
tons of that act. in order to get currency,
and so it was that only in cities like Rich
mond and perhaps Lynchburg, was bank
ing established by pnterpr:sing North
ern capitalists. At this time the farmer
if he got money at all, could only do it
under terms that were ruin0us. One and
Il half per cent month was the regular
street rate when ] lived in Richmond in
1870. In South Carolina as high as 2lA
lNF cent month was paid.
Our population now is greater than
the Old Virginia. in 1860 with the diff
ference that all are free, now. whereas.
but tWO-thirdS were at that time. We
had in 1860 II lOctl currency of $10.000,-
600 scattered throughout the State ac-
cesSible to all who were entitled to
credit. The situation is now that the
great farms have generally been broken
ID and are tlled by small farmers who
have no corrections at large cities. and
however good their credit may be i'm
their own ncighlolhood are utterly un-
known to tho city bankers. These are
the people who complain cf the scarcity
Of money. 1T is not heard in the cities
but in the country, and the c0untrymen.
ignorant of the provisions of the national
lMnk act, which forbils those reason
able and we'll established methods which
prevailed before the war for supplying
IL currency, have been taught to believe