The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1898-01-25
Mr.. FR|ES'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 the
Abolition CT State Banks as They
Were Rafnre the War.
We're Before the War.

oA'5 - 49,,
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 Il hearty
welcome. He said:
IN the last election. the Republican, nr
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 competitors Of MaSSl-
chusettS. The silver men III the South
are sure of their position and feel sure
that that money, if once brought into
existence. would be a cure for al their
many ills.
Speaking Of the work Of the Monetary
Commission. Mr.. Fries said that the gold
standard was found established not only
in this country. but in every other lmpor-
tant country in the world.
Mr.. Bryan outlined the situation in the
South with reference to currency reform
and the needs Of the South in connection
with the plan of the Monetary Commits
son. He took Virginia as a criterion
and compared her condition ut the OUT
break of the war with that which Oh
tanned after the surrender Of -Appomat-
toN with the idea of showing why the
conservatism in financial matters for
which the Southern States were respect
ed in the earlier days. had been thrown
aside.
in 1860 said Mr.. Bryan. 'the old
State of Virginia. which included West
Virginia, had Il population of about l.
10000 white people and Q 600 no
/ groeS. nearly all the latter being slaves.
Agriculture was the chief occupation.
The negroes had no part whatever in
any of the business affairs Of the State
and being unuer civil disabilities. lived
upon the plantations Of their masters
who represented them in every respect.
The banking facilities which this million
I Of white people had were of the most
satisfactory character. and no complaint
was ever heard about q lack of none
in any part of the State. This was ac-
compliShed through the banks which
wcrn chartered by the commonwealth
and in some of which the commonwealth
had an interest. They had liberal an
thority for establishing their branches
and most of them issued their notes a
cainst their assets. the limitation being
! that they should never issue notes for
! a greater amount than five to one for
snec.@ in their vaults.
I ''Ihe State then had $4,000, 900 Of
i banking capital and $1,000 o 900 or cir
culation. 4 circulation confined to- Viz
ginia. The banks had in their vaults Ill
the specie that was requisite to redeem
any Of these notes. \ more c~ontentel
and happy people would be almost i'm
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 sums had been realized by
those who had taken the bonds and notes
Of the government which had been isSreC
to vindicate the integrity of the Union
the N%irginian found Il dGSolate home an.
absolutely worthless currency. and littlC
! left to him but the soil of his beloved
i 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 pasSac e
of the ten per cent lct so as to put the
final eXtinguishment upon all State bank
issues. As there were no United State
bonds held in Virginia. it was Impossible
for her people to comply with the conli
tions of that act. in order to get currency
and 50 it was that only in cities like Rich
mond and perhaps Iynchburg. was bank
ing established by enterpr.sing North.
tIl cdlptdlStS. al llllS tllle Vllp farmer
if he got money at all. could only do i
under terms that We're ruinous One anC
4 half per cent a month WAS the regular
street rate when | lived in Richmond il
1870. In South Carolina as high as 81!
per cent a month was paid.
Our population low IS greater than
the old Virginia. in 1850. with the diff
ference that all are free. now. whereas
but tW-o-thirdS were at that time. We
had in S 4 local currency of $4,000
600 scattered throughout the State &C
cessible to all who were entitled tC
credit. The situation is now that the
2 great farms have generally beer broken
UP and are titled by small farmers who
[ have no connections at large cities. and
however good their credit may be il
I their own nel@hhorhood are utterly I'm.
. known to the city bankers. These ar,
! the people who complain OF the scarcity
{ Of money. 1t is not heard in the cities
but in the country, and the countrymen
: ignorant of the provisions of the national
. bank act. which forbids those reason
IL able and we'll established methods which
prevailed before the wal for supplying
a currency. have been taught to believe
that it was characterization of silver that
produced the stringency which is tC
them indeed an actual and cruel Strin
gency.'
5 The speaker then went on to com
n pare Massachusetts with Virginia in the
L matter of accessibility. pointing out thai
iii the former State. with an area OF
$ about 5000 square miles. there is some
t locality for every fifty-fve square miles
e where banking is done. Within the ter
I ritory lying mainly east Of the FederickS
e burg railroad and north Of Hampton
t there We're twenty cOunties contain ne
e about 5000 square miles without one
$ single place in which Il man could make
@ Il deposit, draw a check or make Il loan
o In the superb James river valley. a:
fertile and fruitful 4 section as could bt