Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1900-01-25
JOHN |. M'LAUR|N|S SPEECH
ON THE FINANCIAL BILL-OUR JUNIOR
SENATOR TALKS PLAIN.
EXPOSES THE PURPOSE Of BILL.
1t Would Make the South and West Hewers
OF Wood and Drawers OF Water for the Eas!.

WASHINGTON, January 1G.-Sena-
tor McIIaurin, of South Carolina,
made the principal speech upon the
currency bill in the Senate today.
lie devoted his remarks to an amend
ant which he had proposed, provid-
ing for the repeal Of the ten per cent
tax upon the issue Of State banks,
which he claims to be the best of
Democratic doctrine. lie said:
Mr.. President, l shall ask the in
diligence of the Senate at this time
to present few thoughts on the
merits of the amendment which |
have introduced to the currency bill.
Mr.. President, it is claimed by the
Senator from Rhode Island that it
has been framed for the purpose of
placing all Of our money upon a
sound basis and SO romcdying the
defects of our present national bank
ing system that the smaller places
may have the benefits of whatever
good may flow out of the national
banking law. 1t is useless ut this
time for me to discuss the question
of the comparative merits of gold
and silver as money metals. 1t is
useless for me to discuss the merits
OF the present national system.
AN EXISTING DEFECT ADMITTED.
The Republicans in the Senate are
convinced that the present national
bank law is defective, in that it does
not adequately circulate money in
the smaller places, or they would
never have introduced this bill.
There must have been recognized
evil, or they would not have tried to
provide remedy. They propose
in their bill to remedy the situation
by giving us more banks under the
national banking law and to allow
those banks to issue little larger
circulation. This remedy might give
us more hope were it not for the fact
that in many sections of the United
Statcs the national banking business
has never paid and cannot pay under
the present national banking law.
The avenues OF profit through which
the national banks arc allowed to
derive their sustcnance do not G list
to a sufficient extent in many locali-
ties Of the United States to make
them profitable. In the New Eng
land States and the Eastern States,
where the forms of securities in
which national banks can deal con-
stitute a considerable proportion oc
the property of the people, these
banks can make money. In the
West and South, where such sccuri-
ties form but small portion of the
business assets, national banks can
not make money.
NATIONAL BANKS INADEpUATE IN
AGRICULTURAL SECTIONS.
Mr.. President, no legislation can
enable these banks in such localities
to make money without changing
the form of property with which they
~ ullnuoI TO lno1 ,c
the assets the people possess. Under
the present banking law, as shown
by the last statement of the Comp
Jrollcr OF the Currency, II per cent
of the national banks in the Western
States have either failed or gone into
liquidation. With this record before
the business men whatinduccmcnt can
be held out for the establishment of
new banks? The chances arc even
that the bank will go out of exist
cncc and far moro than even that it
will fail to make money. In the
Pacific States, according to the same
authority, II per cent Of the national
banks organized have failed Or gone
into liquidation. In the Middle
States 36 per cent Of the banks Or
ganizcd under the national b;., king
law have failed or gone into liquda-
ton. In the Southern States 81 per
cent of the banks organized under
the national banking law have either
failed or gone into liquidation. In
the Eastern States 20 per cent have
failed and in the New England
States only lG per cent.
Mr.. President, the success of the
national banks depends not upon the
number Of the banks nor their distri-
button, but upon the character Of the
Investments Of the communities in
which these banks 10 business
They have not paid in the South or
West and they will not pay in the
South or West. Moro banks will