Year: 1873

The JOURNAL. has more than once


called the attention of it's readers to


the evils nntailcd upon the country,


more especially ontailed upon the
| South, by the system Of National Bank


ing by which a circulating medium is
provided for the transaction of bust


ness.


| Before the war the currency of tho
| country was practically left free in


kind and i'll quantity, untrammelled
by legislation save of the simplest
kind. to be regulated by the general


law of supply and demand; specie


being the only strictly legal medium


for the liquidation Of debts.


Then, if n community felt the neod


of greater facilities for the transaction
of it's business, and had tho ability to
make its paper good, now bank was
at once chartered by the legislature
| under such wholesome and simple
safeguards as experience had shown
to be necessary, and the need was
at once supplied by the issue of the


bills of the new bank.


Now, all that is changed, and the
people are permitted to use such cur
rency only as the Government sees
proper to provide, to-wit, the National


Bank currency. And even that is doled


out to ,ls in such absurdly small guam
4I,,4 l. 1 E 49,


virtually in the control of a handful
of men, tho result being that thcprices


of all property in the State save that
which cun be at a moments notice
shipped to New York and converted
| into cash, are kept down to r1linously
low figures.


If we were permitted to return to
onr old-time freedom, in the matter of
banking, to create new banks as occas
ion demanded, and to issue our own
currency, amply sec1lred as every bnsi-
ness man knows it can be secured,
the price of real estate and other
property in town and country would
rise at once; debtors would, by the in
creased value of their property, be-
como good for their debts, and credi-
tors, satisfied of the fact, would no
longer care to press them for payment;
III word, new era of prosperity
would dawn upon North Carolina and
tho South generally.


Entertaining these views, it was with
much pleasure that we read the follow
ing article taken from the New York
Times, a paper which though charac-
terized by malignity and unfairness to
the South, is yet edited with marked
ability. Tho Times says


Those who suppose that the agita-
tions for radical changes III the Bank
ing law is merely the result of pressing
circumstances, and that it is not likely
to be continued are as we think, mis-
taken. The features of the banking
law which stand i'll the way of what is
coming to be known as free banking
interfere with interests which are not
only extensive, but are also permanent
and.pressing. Their effect, therefore, is
not temporary. 1t is not a question of
how they operate i'll an exceptional
state of tho money market, but of how
they operate i'll those states of the
money market which are periodical,
and which, if they DO not compel at
tention this year, will remain to claim
it next year and the next after that,
and SO on until Congress has dome with
reference to them what ought to be
done.


And we believe it is becoming plain
er every month that the principle OF
free banking is the only ono elastic
enough, and corresponding closely
enough to the varied conditions pre-
sent"d, t" command lasting confidence,
1t is, if "" are not mistaken. becoming
more and more clear that the attempt
to intrrst to any Government otficIai,
administering definite power. fixed by
statute, the task of making depos't"rs
in national banks secure, Is IL IL take
With every turn ofthe varying fortunes
of Wall street, it is more evident thar
intimate Government supervision IL IN
capable of preventing evils, and there
fore invites them, since IT makes the
deposIto,.4 themselves less gigilant, by
promising to do what otherwise they
would have to do for themselves. :


We have called attention to these
facts as showing that the theory of the
Government supervision being snf1i-
cient to secure proper reserve for the
depositors is a fallaciOus one. and that
the reserve required by law is con
stanuy impaired by methods which
cannot easily be foreseen, or If fore
seen cannot be easily forestalled. There
are many other facts bearing on this
proposition to which we shall from
time to time call the attention of our
readers. They all illustrate the prin
cipal that in business like that of banks
of deposit, individuals can look out for
their own interests better than the
Government can do it for them.