The times. [volume] (Richmond, Va.) 1890-1903, 1899-10-05
THURSDAY. OCTOBER .. 1899.
STILL GAINING GROUND.

We ltlCltdttU ourselves INC NNAA~4 NNs
on the fact that the views of The Times
on the subject Of State bank currency
were gaining ground. The latest acqul-
sitlon 10 the ranks of those who are In
favor of free banking is the Atlanta Con-
stitution which has been one of the most
pronounced advocates Of free silver and
the Chicago platform Of 1895. the Con-
stitution now says that the exhibit recent
IN made by the Georgia State banks 10
which The Times referred several days
ago. has opened the eyes Of many to the
fact that Federal supervision is not al
u,avs a necessity. Georgia" it says,
"has demonstrated that under State SUI
pervision OF banks. equal In credit to the
same number Of national banks. can be
maintained"
The Constitution then quotes from the
articles in The Times on this subject. and
adds
putting aside all party prediction upon
the matter Of banking. plain business
sense calls for q more equal distribution
of the benefits OF banking. Even IN ke-
publican states this is acknowledged as
well as in those under Democratic con
troll II is only through the States that
care be taken Of local financial conditions
and for this purpose State banks are indls-
pensable.
The STATE banks of Georgia. did the fede-
ral 10 per cent. tax not stand in the way,
could issue many millions in bank notes
equal In security TO those Of the national
banks.
our Georgia contemporary Is on the
right track now The Democratic plat
form Of 1892 contained a clause recon-
mending the repeal Of the 10 per cent. tax
on state bank issues. and If that recon-
mendation had been adopted by Congress
We firmly believe that the free silver con-
test of 1896 had not been But although
this promise was made by the convention
OF 1892 and although It was used in Vir-
ginia. as one OF the strongest arguments
in favor Of Democratic success. although
II was used to persuade ardent advocates
Of free silver with Populi.tlc tendencies to
vote for the Democratic ticket, when
Congress met Notwithstanding the Demo
Gratis were largely in the majority and
Notwithstanding there was a Democratic
President in the White House. never was
this promise seriously considered. In
stead. the government went on purchas-
ing silver under the Sherman act until in
1893. there was panic and this was fol-
lowed by such depression as this country
has rarely known.
BY and by the Democrats again assem-
bled IN convention to frame a platform
and nominate a ticket The whole bust
ness of the country was paralyzed. money
was scarce. and men were willing to re-
sort TO desperate measures. The conven-
zion pronounced FOR the free and unlimited
coinage OF silver at l6 TO !. declaring also
that II was the business Of the govern
ment 10 issue the money OF the country
and as the platform was originally draft
Cd. State banks OF issue were denounced.
This clause was afterwards modified at
the instance we understand. OF Senator
Daniel. but II is an open secret that the
convention was as much opposed to State
Bank issues as TO national bank issues.
The rest Is history. The gold standard
won. confidence was restored. and pros
pcrity has returned. But our currency
system IS stiil wretched and scarcely less
than a national disgrace. Even now.
when the banks in New York are hard
pushed for money and when rates for
call loans are marked up at 40 per cent.
when there IS a drain upon the New York
banks from the Interior the government
is absorbing millions Of money and taking
IL from the channels Of trade although
the government Treasury Is OVERLOOKING
with sold.
The available cash balance IN the Treas !
ury on October lst. was $3.50 es5.6l2. and tn /
sold reserve S2jiSeSs2o. These immense |
sums Of money are lying IDLE n the vaults |
while there Is a demand IN all parts OF the !
country for currency to carry on business.
But the banks OF the country are stronger
than they have been for years, and this |
* particularly true OF State banks Their |
resources are immense and they could is- |
sue all the currency that the country |
needs II IL were not for the prohib.tory |
tai.
II the next Democratic convention would |
only come out for the gold standard and |
Tor ths repeal Of the 10 per cent tar on |