Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1900-01-20
atliseellanen,ls Reaaing.
GOOD DEMOCRATIC DOCTRINE.
Senator McLaurin on the Repeal Of th'
Ten Per Cont. Tax on State Banks.

DuTluS Luc uiSCuooioh VI WIG Soh
rency bill in the senate last Tuesday,
Senator McLaurin made an argument
in support of his amendment providing
for the repeal of the 10 per cent. tax
on the issues of state banks. His re-
marks were rather too extended for
publication in the space available at
this time but a synopsis will no doubt
be interesting.
In the first place, Senator McLaurin
cited the pending bill as the Republi-
can party's admission of the inadequacy
of the present banking system, and
then he proceeded to give facts as to
why the proposition to reduce the
minimum amount of capital required
of national banks, would not operate
to facilitate their establishment in Sec
tions standing in the greater need OF
banking facilities.
National banks are allowed to &C.
cept as security for loans only stocks,
bonds and personal endorsements.
Without stocks and bonds, therefore,
it is impracticable to secure accommo.
dation from them. The stocks and
bonds of this country are owned prin-
cipally in the east, where such securi-
ties are the main form of wealth.
The south and west also have much
wealth; but it is not generally in a
shape available for banking purposes
under the present banking laws.
The last statement of the comptroller
of the currency shows that of national
banks established in the western states,
AZ per cent. have failed or gone into
liquidation. In the Pacific states only
Sc per cent. have survived; in the
middle states, 81 per cent; in the
southern states, SO per cent; iu the
eastern states, 81 per cent, and in the
New England states, "a per cent. The
success of a bank depends upon the
character of the investment of the
community in which is located, and
these figures show that under existing
laws such banks can only flourish in
the middle and eastern states. More
banks of the same kind in the sections
where the business has proved un-
profitable, would only result in in
creased competition for the limited
amount of business of the kind that is
already available for them.
The per capita circulation of the
country is not significant of prosperity
unless that circulation be equally dis
tribnted. If the per capita is $25 and
it is so distributed as to be $3.50 in New
York and only SIS in South Carolina,
chen the business of New York will
continue to he done at the expense OF
outl Carolina.
The last statement of the comptrol-
Ter of the currency shows that the
national banks of the eastern states
held $l64,34 1886 of stocks and secur-
tiles, the national banks of the south
ern states $16,S49, ,465, and of the
western states S1O,995,759. The &C.
tual wealth of sections in available
banking assets under friendly laws are
not in any such proportion But the
northeast, having a monopoly of the
kind of property that is legally. availa-
BILE for national banking purposes, has
monopoly of national banks, and,
therefore, monopoly of national bank
circulation. This imposes upon the
western man the necessity of going to
the northeast for the money to move
his cattle and grain, and the southern
man has to 20 to the same source for
the means with which to move his cot.
ton. If the people of these sections
we're allowed to make use of such
banking assets as they have, and only
such as are as good or better than
Auctuating stocks and bonds, they
could move their crops on their own
motion, independently ofthe northeast.
Senator McLaurin cited the instance
of the financial panic of 1898, when
the New York banks, for purposes Of
their own, cornered the circulation Of
the country by means of clearinghouse
certificates. He told how, when the
the squeeze began to grow uncomfor-
table in the south, southern banks fol-
lowed suit with the clearinghouse GER
ti6cate idea; but instead of using the
certificate to help corner the currency,
put them in circulation as money. As
this practice became general through
out the south, the situation was re-
lieved to such an extent that the
northeastern conspirators became
alarmed and called the treasury de-
partment to their aid to suppress this
circulation by imposing the 10 per
cent. tax. He stated that if congress
would remove this tax, the states
would speedily provide banking sys-
TENS by which they could make their
peculiar assets available and secure
financial independence of the north
east. In conclusion he said:
81 want, at the proper time, a vote
upon the question as to whether or
not the people of the south and west
are to be allowed to use their wealth
for the upbuilding of their sections, or
whether they are to be compelled to
do the financial bidding of the eastern
money masters. l want vote upon
this question squarely and without
any other question intervening. We
have the property, we have the re-
sources, and we want to know wheth-
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