The age-herald., 1898-01-11
State Bank Circulation.

The proposition of the Atlanta bank CTS convention and of the Indianapolis monetary commission, in reference ito state banks, does not offer the relief that wide sections of the country greatly need. They both propose that a state bank may become a national bank with the same powers and privileges, and subject to the same duties. liabilities and regulations m all respects, or shall have been prescribed for associations origi- nally organized as ma atioEial banking as socfations under the proposed act.'
 The plan proposed would simply serve to increase perhaps the number of the national banks, and would not afford a particle of relief where relief is needed. It would not meet the necessities of localities. It's loans would be upon the present bass of loans by national banks. It's surplus funds would be sent off to eastern money centers, where interest is paid upon balances. The entire plan locks to a perpetuation and an aggra- walton of the present non-elastic, non satisfying system Even the Bankers Magazine begins to see the needs of the people, and to speak of them without expressed thsse vews:
 .'The argument in favor of state bank notes, simply as a method of utilizing such local credit as may exist tn a locality short of capital to develop it's resources, is net by any means a weak one. In principle it IS mutual assccia- don. In every community, however un- developed, resources exist which can be utilized by the Intelligent united action of the inhabitants. There are always leaders among these inhab bitants who are looked up to and cCnfided in by the others. This leadership means credit of some species. If in a district capable ot | furnishing timber or ores or agrlcultura prrducts fit IS the inhabitants, and es- pecally their natural leaders, who best know tha values of the resources. These 1 leaders may not have sufficient credit l outside of their own dist1lct, to insure | the loaning of outside capital to gelt the l were not hampered however, by th= proh IbitAcn against the use of their credit with their own people in the form of notes men elf honesty and standing could organize a local system of pro- ductive industry fitted to the natcra,
 
 less expensively than they new can When they have to make a start by l bringing in scanty supplies of foreign I capital at rates of interest which prove 1 too burdensome.
 By organizing a state bank such mar l form a center of credit. By issuing i notes on this credit they supply tenn | porary capital Ithrough the use of which l commensurate to the local circumstance the lucal energies are put in operation | and products fitted for market. The | notes return to the bank fin the form oi l deposits, or centnue in circulation unti 1 the products are sold and the proceeds received and used to retire the nCtss | Under honest and really competent man
 agenlent there can be no danger of loss | and the whole wealth of itile district i' augmented, its credit increased both q. l home and abroad"
 Thls is all the friends of state bank. and the only obstacle in the way of { return to a system that would let eacf | state determine what it needs ln tht l shape of credits and circulation is tht l 10 per cent tax loaned by the govern | msnt upon the clrcula ton of sbatt l baniks.
 It should be repealed. The west ant | gtMth should unitedly demand it's repeal
 It Is today creating more hardships am l more trouble and more depreciation o values than any other burden laid upol | the people by the general government l No democrat can oppose the repeal O l the tax The Chicago convention de manded it's repeal, and the people ar l sustaining that demand much nor l freely than is generally believed. Ther | is no section of the country that woul
 not feel the beneficial effects of repea
 of the 10 per cent law. Let each stat 1 become free to decide what it will hay
 in the way of banks and paper money
 and let the governma Tt restrict itself t its constitutional function of coinint
 money.