Pike County Democrat, Volume 23, Number 23, Petersburg, Pike County, 28 October 1892 — Page 9

BORE MONEY AND LESS TAXES. The Demand of the People as Explained by Congressman Hemphill. HOI TBADE IS AFFECTED BY CURRENCY EXPANSION m CONTRACTION.

Onr Per Capita Circulation by Y«are and the loanable Capital In the Various States—Why the Democratic Party Favors the Repeal of the Tax ou State Bank Issues—Free Coinage of SUver Not Sufllolent—The Legal Tender Question.

Id the East and North it has been hard lor ««r voters to appreciate the extent ot the heeds In other parts ot the country tor more abundant local supply ot currency, and the consequent vigor wUl1 wWch 9TtT1 pl*“l0r additional greenbaoi Issues and later tor tree coinage ot silver that promised to meet this want was supported in the West and South. Keen now that the national Democratic platioroi has expressed ltselt in tavor ot encouraging State hank circulation It has been misunderstood In some quarters as in attach on Rational hanks—which It is not—Instead ct what It really Is—an attempt In the natural Way to meet a want, which, the National banning system has never supplied and which ' It Is every year less able to meet. It la believed, therelore, that the columns ct tbs World cannot he better ocoupled than by a review ol the conditions which call lor resources beyond the power ol the Natjonal banks, and I have therelore quoted ■alow from the speech in congress. June ie, 180d, ol Jehu J. Hemphill, one ol the best Informed, most thoughtful and most conservative representatives ol the South In Congress. John DsWm Wxhnir.

M*. chairman ■ The feeling of discontent that prevails to^laj with a large class ot tlie Intelligent people ol the country, and Is now manifesting itself with great vigor among the agricultural population ol the southern States, demands at the hands ol congress Its most serious consideration and the adoption ota speedy and effectual remedy, It one can be devised. In common with others on this floor who represent constituents mainly dependent upon agriculture 1 have given the situation, Us cause and remedy, serious investigation and thought, 'l'hat these people have abundant cause ot ooioplaiut is without question, and that n good part ot this is chargeable to the unanclal and Industrial poUoy ot the Government seems to be equally dear. The remedy lor this uulortunate situation, no lar aa the Government can affect It, is more money and less taxes. I have taken occasion heretolore to express this view, and In doing ao now 1 do not lorget that many of the troubles at Ule, the tailing ol prices, the .want ot trade, lack ot employment and many /ether similar troubles, real and Imaginary, ' have been attributed In times past improperly to the want ot money. While these mistakes should put us upon our guard that we may not tall Into the same error', they,should not lead us Into the opposite one and Induce us to overlook laots that are patent or tall to attribute them to the proper cause. An editorial In the Xatumal Economist ot the 30th ot April, discussing the demands ot the farmers ot the country, concludes: » bummed up It tabans more money and less taxes.'* In the hope ot assisting somewhat In the aolutlon ol the pressing questions now before the people, X undertake to submit some remarks upon the unanclal side ot our troubles. The whole subject naturally resolves luell Into two Inquiries: first—Is there really need tor more money f 8eoond-How cuu the increase, It actually needed, he most easily and safely secured t ops rsn CAPITA CIRCULATION, It the per capita theory Is the true one, and prosperity follows in the ratio ot the inorease ot the circulation, as many contend, then we, taking our whole country, are without ground ot com plaint; lor notwithstanding the oturepeai .assertion th«f the amount ot money has been constantly decreasing In the United States in recent years, the tact Is It has Increased In amount and bat more than kept pace with the additions to our population. Taking the figures from official sources, which la the highest authority, we Hud that the amount ot money has continually Increased, aa shown by the subjoined table: Circulation Population, per capita. 31,443*321 4121.85 32,0€4,0U0 13.98 82,704,900 10.23 33.366.000 17.84 34.046.000 10.07 34,74*. 000 20,57 35.469.000 18.09 36.211.000 » 18.28 80,973,000 87,". I ,750,000 38,688,871 89.565.000 40.596.000 41.677.000 42.796.000 48.951.000 46.137.000 46,353. <00 50.155,783 61,316,600 8&SS l:.893.oo« u.sn.uuo 66,146.000 67,404,009 68.660.000 69,974,Olid 61,289,000 62,622.250 63,978,000 >.41 In I860 the per capita circulation was S13.83. In 1800 it was *23.45. On Hay 1 ol the present year It was *24.72. In trying to make answer to the ffrat question, It is not sufficient to show that there has been an actual Increase In the amount ot money, or even that there Is more per capita than lu former years, simple increase In the ' circulation Is not all that Is needed, tor the truth is that many persons hold, and not without good reason, that the unfavorable Unanclal conditions arias act so much from the Insufficiency ot money ns from the Inequality ot the distribution. By this I do not mean the distribution among indlvld- - uais. tor 1 am not foolish enough to believe * ' that this can ever be equalized, hut I refer to the want or anything Uke a similarity in the amount of banking capital and loanable funds in various sections or parts ot the country. T here will he found in the comptroller of the Ourrenoys report tor 1801 a table show, tng by States and Territories the population of each on dune l, 1801, and the aggregated capital, surplus, undivided f ront; and Individual deposits ot national and State banks, loan and trust companies, and savings and private batik* in (he United States on June SO, idol, the average ot these per capita ot population and the per capita averages ot SMh resources in esch class of banks and in

this table I take the following Bgures: L0AN4BW t'i'flTat IN JCdtw and . -- - ffmlwiM. Jn»# 1,1891. N.*H»roi)shli« aviiOOO Verroout.. SaS.eOO TBS SBTEBAL STATES. All to***. MesuohuMttil 2.'jua.ua) - i»i»i»ud. Hsa.uiTo OoDnei'tioufc .. T54.00*) Kevr York..... S.UU.UOO New Jm»ey. .. 1,484.01)0 Penu.yiv.nU, 6,082,000 SeUi«re.. 170,000 , Maryleud_ 1.048,000 ! »Ut. ul Col... 280,000 Virginia.1,670,000 Florid*. 405, ('00 i Ala6*20* ..1.638,000 Mississippi..., 1.809,000 Louisiana...., .>,137,000 Texaa.." ?,$q4,000i Ore*©®..... .. Arizona.. North Dakota. South Dakota. Idaho.......... Montana ...... ■Now Mexico,.. Inti, 'ftullaiy, Oklahoma..... _- Utah..,........ 214.000 Washington .. 375,000 Wyouiic* 60.000 Capital dkc.j* $81,253,068 JS: Eli: an Minnesota..... I’, 36u, 000 I Missouri....... 2,734,000 Kansas.1.4*3,000 i Nebraska. 1.148,000 Colorado...... 440,000 1 Nevada,.,..... 44,000 California. 1.244,000 7,807.,. 86,078,63 42,003,237 220.207.991 71.763,885 271.513,188 134,332,390 91,823,420 111,981,211 103.432,170 164,047,645 53.898,583 69,833,620 40,480,878 333.000 61,000 193.000 341.000 93,000 14% 000 157.000 181,300 116,006 Totals.. .64,156,300 $5,340,438,191 91.03

COSirAJUSON BETWEEN SECTIONS OF V. 8. Tills table purports to contain all tbs loan* able funds of nearly every banking and money-loaning Institution In the country. An examination of these figures shows that the loanable lunds In the Eastern States ranges from $80.70 per head In New Jersey to $361.70 in Kbode Island, while the Southern states run Irom $6-56 la Arkansas, which Is the lowest, to $30.90 In Louisiana, which Is the highest. In South Carolina It Is $13.49. It we count among the Eastern States Maine. Massachusetts, New Hampshire, Vermont, i Rhode Island,, Connecticut, New York, New Jersey, Pennsylvania, Delaware and Mary, land, and among the Southern States vir. glnla. West Virginia. North Carolina, South Carolina, Georgia, Florida, Alabama, Missis, slppl, Louisiana, Texas and Arkansas, giving I to each section eleven States, we And that of i the total loanable funds, aggregating $5,840,. 438,191, the eleven Eastern states hare $3,- : 733,818,015, while the Southern States have only $247,043,396, giving to the eleven East, ern States about 63 or 64 per cent, of all the loanable funds, and to the southern States not more than 3.5 or 4 'er cent., and to all the other states and Territories of the Union between 30 and 33 per cent. It these funds be divided accordtnsrto the number of ceres or land In the respective sections It shows that In New England about $33 would be allotted to each acre and to the Southern States not more than 5 cents per acre. The population ot thoeleven Eastern States ts ahout 18,084.000. They control $3,733,813,015 ol loanable funds, which gives them a per capita capital of about $195. The eleven Southern States have a population ot 14,967,. ooo. and have only $347,043,396 ol loanabto funds, which gives them less than $16 per capita. The average of the other States and Territories Is less than $63 per capita, so that while In tho Eastern States they enjoy about $1,000 per faintly, in the Southern States they must content themselves with about $66 per family. THE EFFECT UPON E0EB0WSK8. Wh<le the per capita theory is not the best or solo test oi: the amount ot money needed, it is sufficiently correct to make manifest through the figures above given that the South is suffering a monstrous injustice under the present system ot finance of this Gover. ment. While mon Jn New York and other large ffitles ranges nom 3 to 4 per cent, per annum, in many of the Southern States It commands irom 8 to 12 per cent. No doubt the money goes to these large cities because it hnds ready employment and there is an abundance ot property to be pledged by the borrower to lnsureits cortiin return to its owner; but U is also true that while these great values at. tract money to the cities the money by Its constant use Increases values ot property, so that the two operate upon and In conjunction with each other to enrich the lew, and In the mean time other portions of the country are retarded and hindered In their growth by | the lack of the funds that are so abundant lit the chief money centres. > Inanswcr to oompluluta reciting such tacts, it to usual to reply that any eltteen of this country earn borrow1!!! the money ho wants on good collaterals. This statement Is not true. Usually money ca„ be borrowed upon ; collaterals that are notoriously good In the money markets ot the country, or In the markets where the loan to applied for, but upon many of the bonds of counties, or bonds or stocks ot companies ot local repute, as good os Government bonds but not listed on the (took exchanges of the great cities, nut a cent ol monoy can be raised. There aro between 1,109.000 and 1,300,000 people in South Carolina, and they have over $300,000,000 worth ot property. They have as mueh integrity and character as the people ot any other state, and yet it to doubtful u there are a dozen men In the Stale, outside of two or three cl' the orlnotpal cities, who could borrow on their notes $10,000 in any ot the money centres of the country. 1 do not object that those who have money will not ' lend except on eertnln class ot securities. It ts their property and they can do na they will * with It; but there ought to be some change In ’ the huanolal system under which cash can be ; borrowed only upon a limited and favored class of securities, and under which the money of the country accumulates In n few attics, ; leaving all other Darts of the land practically I penniless. 60TXINMENT ISSUES NO AID. A simple Idci'vase ot the clrculaltoo ot the country by the Issuance of notes from the United states Treasury, dr by most other plans I have seen suggested, would enure chleoy to the benefit of these who now cor. trol the largest; part of the existing currency. if the money of the country were doubled under the present system the ratio of distribution would bn practically maintained ns it to

mv. Those who have the most would get the most, end those who have the least would get little U any; sad the people would realise j almost a practical fulfilment of that paasase of scripture which declares «that to him that hath Shall be given, and from him that hath not shall be taken away eyes that which he hath." W1U* m TBS BBMIDTT Our second inquiry comes to this: How can we lately enlarge the circulating medium, and at the same time Insure a mare equitable ; distribution of the loanable funds throughout j the different sections ol the country t I ven-1 turn to suggest a solutlomtH this question wi th oonslderabld diffidence, for I realize fully the difficulties and even dangers of dealing with the Q nances of a great nation tike this. ! But we can at least appeal to the experience of our own and other countries, and 11 we do not and anything which comes up to the full measure of our hopes we will certainly learn that many of the so-called schemes of relief advocated In these days will not only fall of any good results, but will prove absolutely ruinous to the country. VSXK OOIKAQK .or SILVXK NOT Stff TlOWNT. We must keep In mind also the question of' practicability, tor It Is Important to suggest i not; only something that ought to he, but j something that cau be done without delay.' Experience with silver teaches this much. For the past tlfteen years strenuous efforts have been made to enlarge the money supply by the tree coinage of silver, but so tar without success; and In the mean time the benefits which would have been derived. It any,; have not been realized. But the Increased i circulation from this source, even by the, statement of Its advocamsTwould he small,: amounting to omy abousrso cents per capita ; per annum. It Is lair fo say that many wise and patriotic men firmly believe that free silver coinage would drive gold out of circulation, and leave us'with lar less money than we now have. Let me say Impasting that the prespect of silver legislation is greatly retarded by the tact that In many ol the silver-producing States of the Vnloa nearly all contracts are payable In gold, and by the further tact, as shown by reports to the Comptroller of the Currency, that on March 1, 1892, the Na-: uunal banks In Colorado held 87 of gold to •Itor silver: Nevada, *91 of gold to *8 of stiver ; New Mexico, $80 of gold to tl9 of silver; Arizona, $»2of gold to $87 of stiver; Idaho,$90otgold to $a of silver; Montana, •81 of gold to *7 ot sliver; Wyoming, $90 of gold to $9 ot silver; California, outside ot banj STanclscd, $90 of gold to $9 of silver; 8an: -Francisco, $97 of geld to $3 of silver, I have simply given the ngures In aollais, leaving out the cents. The southern States, on the contrary, have evinced their faith In what these people claim to lie perfectly good money by keeping gold and silver largely in the same proportion. In South Carolina, for Instance, the national bai ks have $43 ot gold to 858 of silver. In Georgia $44 of gold to $55 ot silver. The same thing Is true or other Southern States. The lac’ that the people who produce silver and who are so urgent tor Its tree coinage will neither make their contracts payable In ft nor keep It on deposit In tbclr own bonks has naturally «Aated some suspicion as to their faith In wWt they allege. This, however, simply In passing. But, whatever the results would be Prom free silver. It wo Judge the future by the past. It may be tome years before we can have any practical experience ot them. In the mean time those ol us who believe that the country would be materially benefited by an enlargement ot the money supply bad best look to some other means to produce that result. Wo can secure this by the Issue of notes. Bow shalil It be doner Before deoidlng upon any plan it should oe understood that the notes must rest upon a thoroughly sound basis, which shall be either coin or easily and quickly convertible into com or its equivalent tin value.

(STATE BAMS CIRCULATION. I suggest m tine most feasible plan tbs awetcdment of tbo existing statute which levies a tax of 10 per cent, on notes Issued by State banks; to except from Its operations all notes Issued by a state banking association, provided that said notes under the law whereby they are Issued are secured, first, by tbe deposit with some designated officer of the State or United States of a sufficient number of bonds of the United States,x>r any one of the States, counties or cities, which at par will equal the circulation which is to be Issued by the bank; second, by a nrst lien on an the assets of the hank; third, by the additional liability of the stockholders to the extent of 100 per cent, over and above the sum actually paid in by them for their stock. These are simple eonaitions and oould easily be compiled with. It would require no Investigation of the actual condition of the State banks by United states officers, but simply on examination of tbe State statutes, to see whether they conformed to the law which exempted the hills from 'the payment of taxes. We could safely leave it to the State, I think, alter this provision, to see that the bunks should have no extra privileges, but that they should be required to take the bonds of the State and counties at a reasonable rate of interest, and that no banking institution should issue notes on anything except tlrsl.class securities; and It would be wise to provide that not more than at) per cent, of any one class or denomination of bonds should be held by any one bank. NKW MARKET FOB LOCAL SECURITIES. United States bonds are now held by some national banks to. secure their circulation at a rate of interest not exceeding a per cent, per annum. It would be an easy matter tor the suite to require all banning associations, taking tbetr bonds or the bonds of counties ind cities as a basis of circulation, to reduce the rate of interest collectible froju the State or county. By this means a very targe sum could lie saved to tbe taxpayers by a reduction of the rate of interest upon these public securities, and the banks oould well afford to take a low rate of interest It they had the privilege of issuing nates upon the bonds which they held. Banking business would be profitable it the banks oould draw 3 per cent, upon the.bonds they held, and Issue notes upon them at their par value, to be loaned at much less than at the lire sent rate of Interest. REDUCTION or LOCAL TAXATION. U this plan oould be carried oat It would work Immense saving to the people of the southern Stales, and at the same time increase to a very large extent the amount of circulating medium, which they so much need. Below la a statement of the eounty deto or eleven Southern States, together with the amount of interest paid annually by each one upon its county debt; Slot*. r,>.» r, s«AL *W»*..- 100 Biu.. , «.««O Mtwiulppi... 1.1SS.SSS Earth Cured**.. 1,S1».8M Total!.01t.4a7.ea3 $1,011,518 The total amounts to 115,437,003, and the lnterett annually paid la $1,081,518. which averages almost 7 percent, on the total Indebtodness. If this were reduced to 3 per cent, the burden upon tne taxpayers would be brought down to $403,138.00, and they would thereby save annually fully $017,504.13 , which in twenty yean would amount to the large turn of $13,350,088.40. The State debt ol tht tame state* la shown hy the

5 00 4,604 1,663 _1,164 .SMS Total..'..,.......86.Taa.MT •4.6T9.T68 It the annual interest of [this debt could be reduced to 3 percent. It would save the taxpayers *1,048.088.49 annually, which In twenty years would result la a total savin* Of *38,001,780.80. la South Carolina tbe Interest on tbe State and eounty debts amounts to some'hlog over *463,000 per annom. If we could reduce this by one-half, we would save annually more than *230,000 and la twenty years about *8,040,000. It so happens that south Carolina has n debt ot more than *3.000,000. bearing interest at the rate or 6 per cent, per annum, which comes to maturity in 1893 It we can pass a measure or this character we can place this debt in tbe bands ot our own citizens at a rate or Interest which will save duilng the usual period that such debts run a sum exceeding *3,000,000 on that one Item alone. By mean 8 of the bant: note Issue that I suggest, the bonds ot the Slates and counties. which by reason ot their torm and value can not pass as money, will become pvacUcatly transferable tato money and the circulation increased to the extent ot the coles Issued upon them; and while we would not succeed In concerting the State and county debts into n blessing, wo would greatly reduce the weight ot the burden as It now rests upon the shoulders ot taxpayers by lessening the annual Interest fully 30 per cent, and by transmuting the principal Into a circulating medium Ibr the transaction ot business, Instead oMylng Idle in the vaults and strong boxes ot the present owners. ixKUUKttcn or others. In considering the wisdom ot establishing banks ot Issue under State authority It ts well to recall the tact that every nation on earth that has attained any marked prominence In commercial and financial lines has found It necesary to nave banks to Issue notes, which pass ns money and torm a large part of the circulating medium ot the country. These notes are generally issued against coin or publto securities held tor their redemption. nothing can be more desirable In a tree oountry than that the cttlxens of each community should control all ot us affairs as tar as practicable. It cltliens ot every class and profession became stockholders or Joint owners ot the financial Institutions ot the town, so that the interests ot the various enterprises and pursuits become interwoven with the Interests ot the bank, they would sustain each other, and, being tree from political and tactlouni control, we would enjoy something like home rule lu our financial affairs. At present the money and the people are too far apart. lids local control practically prevailed In England tor one hundred and fifty years prior to 1844, and to-day tt beautifully Illustrated la the experience ot Scotland (which is blessed with one of the best banking systems in the world), as told by Ur. Patterson in his “Economy ot capital.” Be says:

II it to Scotland that wo moat tt'll look to tto the economy of capital ia the most cot form that ha* yet be«*n deviled. There, exery little couuiry town has itToauk or banka, branches of the parent insUlation in the capital, fcach of these krauoh banka bcootaea a reaervoir lor the spare money oi the surrounding district. The sheep farmer, an he retire a with ueary puree from the fair, ana the grain fanner, aa month by month he receiree peyxneat fvr buna;e£ hasten do deposit their money ia the bank—whei-e it la uot only kept aeou -eiy and at call, not where a moderate iate of interest ia paid on the amount deposited, 'i he country ehem. keeper in like manner, and even the ootter. take hither their email gains to be ready for the payment of wages or of rent; and the great landowners of the district receive thoir rent through the same channel. *»**•*- * sawaw •t.nc.4 at tlios.who dni with »»» WM Tb. umimii«n oi thi the midst of each ah ohvact.r and ciroameL--- . the book. «• »»M ready to lesa tune)/eta to of their customer* who ere in used of It end ■ ue desertlug of oonhdence. In this way two «mt objects we gamed. hneh tuu in the district iusteed of (*•» formerly) keeping his tarings In a strong chest, or hid iu on old stocking, ie now richer by receiriug interest on hie money tram the bank, end toe industry of the district ie et the iw time fostered by the edrsnoes, in the eha»e of oash-eredits, which the hnuk nutnagere are ever ready to moke upon moderate terms to worthy customers. GOVERNMENT VS. LOCSlL SEN KING. Whenever the Guverumeot under! akes to Issue notes as n circulating medium the amount Is determined not by the monetary requirements ot the community, but first, by the exigencies el the public service, and secondly, and very soon, by the greed and selfishness ot politicians and demagogues who hope by this means to ingratiate themselves Into public lavor, while they rula the country and debauoh the people by an enormous output ot paper premises that soon become utterly worthless. In such a system there Is no self-acting check or regulator that limits the issue to needs ot business. When, however, the community itself regulates the amount to be issued, we may reasonably hope to escape either a scarcity or a plethora ot money. This is one ot the essentials of any change in our financial system, tor while human wisdom can never hope to prevent fluctuations In the prices ot commodities, or account tor the varianee In supply and demand, yet it is certain that sudden and artificial changes In price should not be caused by an excess or deficiency ot currency. To Insure steadiness In the measure ot value the amount of money and the monetary requirements ot the community must increase and diminish la practically the same ratio. It has been objected that the amount ot money in the oountry will be controlled by the people instead of by the Government. This objection applies with eonslderahte force to a banking system with which is connected any features ot monopoly; but n can hardly be made to avail as a very potent objeotlon against the tree banking system In which the thrifty and industrious people In each community are the stockholders in the financial institutions which are to control the amount of currency. Under such circumstances we can hardly expect that they would be willing to curtail the amount ot money in circulation when it will inure to the injury ot their own business. The interests ot all the Institutions ot the community will bo so interlaid and Interwoten with those ot the bank that they must all stand or tall together. But tt this objection be Insisted upou, it may be answered by tbe statement that the same thing is true in the issue ot gold and silver coin under the stamp ot the Governments _ It ta claimed that a large majority ot the people ot this country are really in favor of the tree and unlimited coinage ot silver. It is ot course well understood that the amount of money which we will get under free oolnage will depend entirely upon the wishes and interests ot the silver owners of tins and other countries. When It Is to their interest to have the silver bullion oolned la this country they will have tt done. When it te to their advantage to ship tt abroad they wui do that; and t he sutbUos ot the Mint for all the years ot Its existence under this Government show that from the opening ot the Mint up to 1873 tt pleased the silver mine owners to give us only about 8.000,000 ot silver dollars. For many years they did not deign to give us any at all, and as late as 1830 and 1837, and again in 1887, not a single standard sliver dollar was coined by the mints ot this country. It the people are really in earnest about having the tree and unlimited coinage ot silver, when the amount of it will depend entirely upon the Interests of the mine owners ot the country, who are tew In number and located la one section of the Union, It Is not unrea

bonable to suppose that they would be willing to uust the people ot etch community to furnish tank notes for the transaction of their own business. Again, it is oiaimed that the financial ays-I tern Is objectionable which allows any por- j tlon of the community to make gain out of the circulating medium. It this objection be persisted in we can again refer to the coinage of both gold and silver, it is well known that the owners of bullion, either of gold or silver, make money out of having it coined by the mints of the United states, otherwise they certainly would not do tt. In the case ot the silver bullion the profits go to a very lew persons comparatively, whereas under the establishment ot u free banking system the profits would be enjoyed by tne people ot eacn community, so that those who saved their means and luvested them In the banking Institutions would not only reap the reward of their own professions or occupations, but would also derive a share c-t the profits-whlch came from the use of their means by the oommuatty at large. In this way U would put the funds under (ho control of the best business Interests, giving theta whatever profits could be fairly made out of tt. Is.GAL TkSDBB NOT BSSKXTIAL. The objection has been made that hank notes are not legal tender. People should know that good money needs no ppwer bound tt to put It Into circulation—the difficulty being always, so lar as 1 have experience, to keep ft from passing away too quickly. It is well to remember also mat while the legal-tender quality ot money compels Its receipt for all debts that are due there Is no power anywhere In a free country to force 'any citizen to accept In his dally business lor current or tuturo transactions any kind er description ot money whatsoever. Notes ot t he Bank of England are legal tender, those of the Bank of Scotland are not, yet the notes of the latter serve their purposeperleetly, and the Scotch banking system as a whole is regarded as superior to the English. Whenever paper promises ere made a legal tender the Government thereby constitutes as a measure of all values a thing which In ! Itself Is of no value. TBS BEPBAL OP TBS TKOHIBlTOBT TAX ON STATS BANK ClKCCLAf ION A PRACTICAL BBIIXSY. This plan to repeal the tax ot 10 per cent, upon all bills Issued by other than national banks and the establishment of State banks of issue is practicable; It decentralizes the money power; tt will prevent the control of the currency by a few; It meets the approbation of more people than any other acheine, and It localizes our currency. In an editorial In the financial Chronicle ot Slay Id, latia, the following view is expressed: But the nutn point we wish to mat* la that taking elf this tax opens tho door to ua introduction o. the only kind of paper money system wuloa oaa meet tbo nooda of oar Internal commereo. It i» impossible for so vast a soantry as this, dottsd all over with important ludaslriai osntros. inorous. in( every year, to SAVA a satisfactory currency so long as the aatioaat eapital issues, redo-ms and dominates it. Every prerogative and attribute oven ot oar bank notes, and suit more of oar stiver certioates, ton* to draw them away from the interior, oven when tbs issuer is a resident m a {southern or Western Slate, and loaga them in an Eastern city. Only taink—us an illustration of the artitioial cherts.or of ocr present devices—of the incongruity of Saving Washington the redeeming ceit re. W uat has Washington to do with the internal commerce of the oountry f Or wherein co. aisle the wisdom of glrmg a paper ourrsnoy Intended as a contrivance lor local usee tho power oi paying customs dues? Why give it the semi-legal tender character of requiring story national bank in tho whole country to eoospt inch currency In payment of debt*? These are all qualities which help to ntake its movement unnatural, artificial, and impart to it a roaming character, helpiug to force it away from the isauer, away from the oouutry die- i triers where n is cooled, sou consequently tola- 1 dues its accumulation when out of active commercial employment in the great financial eeutree, and while tuers to foster and become more or lees fixed in speculative ventures—that is, uniespcaitve ta commercial influences when needed for commercial wers. * i

In conclusion this article says In substance tbe working ot ibis system win result as follows: First, tbe tendency of those bank notes will be towards home and not away from It, and In this will differ tram any paper note now in existence. Second, when out ot active use they wm go into the bank tor redemption, and not acrumulate at Chicago or hew York to breed unhealthy speculation. Third, they will always be on bsnd to moTe tbe crops because they will lodge at homo. PANICS ATKRTBD, But any new system ot 11 nance which does not provide some measure looking to the prevention, or at least to the mitigation, of panics would be incomplete. Panics, as we all know, do not result from an absolute scarcity ot tbe circulating medium ot tbe country so much as tram the apprehension upon the part ot trading people that It Is liable to become scarce. In other words, a man In the active pursuits ot commercial life who has bills to meet at a futurs day and tears that when they tall due he wiu not be able to command tbe money to pay them begins, as a matter ot precaution, to gather In money and hoard It against a day when he will hare to pay it to his creditors. The result ot this Is to take a certain amount ot money out ot circulation, and ether commercial people having like bills to meet in the iuture, and equally anxious to save their credit, follow the example ot the brat, become Irlghtened ss to the probability ot securing cash at tho day when they must have it, and they likewise take money out ot the bank and board it until the day when their bills tail due. Tbe next seep Is, the banks seeing their deposits diminishing, and knowing that they have a large number ol customers whose checks must be honored la cash whenever drawn, begin to strengthen themselves by refusing to their customers a lull line ot discounts, such as they are accustomed to. • The customers being unable to discount their paper have no remedy but to draw their deposits tram tbe banka, and so each one, becoming frightened at the conduct ot the other, contributes his tull measure to the actual diminution, not ot the amount ot meqpy la the country, but ot the amount la circulation, and it is onlY alter the whole country has gone through a terrific strain; and loss that people come to the point where , commence is restored and begin to act as If! tbe future could be trusted. Tbe whole difficulty grows out ol tbe appro-! henston that at a luturo day money wiu be scarceo and anything which will restore to tbe public mind tbo coatldent belief that they can have money in tbe tuture without holding it until that time will at once end tbe panic. Tilts statement, I think, la fully verified by the history and experience ol different countries in such emergencies. A measure which wllj allow hanks to Increase the amount ol their notes lu any unusual and great stringency will go far towards lessening and preventing the recurrence of these great financial troubles. This has been attempted in Germany by tbe ban* act ot that empire. Tbe Imperial banks and such ot tbe State or other banks as conform to the requirements of the law aro authorized to issue such quantity ot notes as they have gold deposited ss security, and a considerable number ot notes without security ot gold apparently, and in addition it la permitted that more bank-notes m^y be Issued proylded that a tax ot 6 per cent, is paid thereon, the Idea, ot course, being that In case ot great emergenqy, to prevent financial loss through a panic, tbe banks shall have it In their power to meet any unusual demand that may be made upon tnem. Tbe tax Is put at a high rats to compel tbe retirement ot t ba notes when tbe necessity tor them baa passed away. It is generally sufficient to know that notes can be issued to meet an emergency to prevent tbe occurrence ot It It would he easy to engraft upon any bank

In* not enacted In this country a provision permitting the Issuance ot notes tn excess of the lace value ol the bonds Held by the oenks, subject to a tax ot 3 or 6 per eenu per annum upon tne notes so Issued. Thus the temporary financial strain that comes periodically upon every country could be greatly mitigated. It not entirely avoided, by tlie issuance or these emergency notes, while the heavy tax laid upon them would Induce the bank to retire them as soon ss the special demand had ceased and the money market became settled. This simple provision would furnish the means to the country ot meeting any sudden and unusual call upon Its money supply and at the same time prevent an excessive and redundant Issue to the point where the money becomes cheap and worthless. ko “ wildcat" cokbkxot commuia This measure. Intended to supply the country with an amount of money sufficient to transact its increasing business, is easily distinguishable trout the old “wildcat” banks that temporarily nourished in antebellum days. Under the old system ot banking then existed no uniformity In the lawn ot the different, states, and no aecurlty was required for the redemption ot the bills issued except such as the statutes ot the various States provided. Usually the banha were permitted to issue their bills to the extent ot three limes the ameuntof their capital stock. Even under such liberal statutes the banks In the Eastern and southern States worn almost without exception good. In the newer States ot the southwest and northwest they ware sot. The Legislatures were not so careful, and public opinion was not sufficiently tanned slang conservative Ones to keep the banks within reasonable limits, and the States were not In sufficiently close communication to allow of the puolio opinion ot the country being brought to bear upon any particular State that was tempted to go beyond the bounds ot prudence; hut as Urns progressed and people bad experience in such matters the system grew safer and more conservative. During a period ot seventy years the banks ot Massachusetts suspended specie payment only one time, and the bite ot South Carolina banks were good aU over the Union. The total issue ot state bank notes on July l, 1861, was only $308,006,767, less than the uneunt ot specie then In the country by 160,000,000, the two together making the total per capita circulation ot the land at that time only $111.1)5, showing that the trouble with the state bank bills was not an excessive issue, but the want ot certain and well-known security for their redemption. Under the proposed system no notes cau be Issued that have oot the triple security above set out, and as the business between the several States is now so general and constant no one or them will desire to issue notes which would be reluaed Just beyoud its borders. The people have so lung been accustomed to money whleh is equally good everywhere in the Union that they would not tolerate tor a moment an issue by any banking system which would give them a currency liable Co oepreclate In their hands. , cosclcsiox. 1 submit these views and this plan ot relief to this House in the hope that they may lead Co seme action. 1 am not hound to any special scheme, lor what we seek and rnuat ha vs is some substantial results. That the majority of the people ot the Bouthern Statifc-nre sulterlD? to-day monstrous injustice under the existing financial system is as clear as tho heavens when the tun shines in It. ° Want, gaunt want, presses hard upon the threshold of many of those people, as patriotic and deserving as any citUens ot the tiepublic. It Is a burning shame that a land so blessed ot God should he so cursed by the laws ot man. (Applause.)

CAJIFAIGS MSGS. rnmpalcn Sour. Am—"JoAn flrawn'a degy." A Reform's fate eon Is rising ud the darkness fades away, Piotoctlou bora at ignorance expires beneath its ray. Its noon shall otewn tha glory at ear nstlan's brightest dsn, as we go marching on. cnor.ra Glory! glory! hallolaiah! Glory I glory! haUetajaht Glory! glory! hallalnjahl Batons gosa marching on I Remember eighteen ninety with its riotory and fame. Twee but the smoke from whioh ere long shall bo: st the snored flame Of liberty triumphant, 'midst a people's glad acclaim. As we go marching on. (Chores. at Rise, freemen, who hare uerer bowed to ferae, aad aerer will; Defeat the dark design of ths corrupt Elections bill! Strike down the tar IS robbers who hare tappsd ths publlotill! Let Reform go matching on. I Chores. IT. Olcreland and Stersnson hare armed them for the light; Truth, faith aad burning seal uphold their banner bright; Ours is the strength of those who battle for the right, x For Clereland and Reform I [Chores, P. W. E, Clereland, the Choice of the Ssttes, Am— " coferitio. the Bern <tf Its Ossoe.* To Oleeelend, the choice of the nation, Ths hosts of Democracy turn With thunders of glad acclamation. White the watch-tires of Liberty barn. Where the plains our broad risers are lasing. When our mountain peaks gleam with bright hue, ■* The banners of Clereland are waring. Upheld by the brass, strong aad true la Clereland for head of tbs nation The land wiU arow its belief; From the yoke of axeesstre taxation Wo look tor the coming relief. Ths people no longer 'U be staring. While robbers their burdens reoerri For the banners of Clereland are waring, Upheld by the brers, strong and tree. On OTereland. the pledge of true union. The robe of the fathers will rest. With the shades of the gnat in oommaalsa. Our country with harmony blest. For affection fraternal we’re erasing, From the lakes to the gulf waters tdae; Whits the banners of Olersland ate waring. Upheld by the brass, strong and true. H.O.K. H urrah, Hurrah. Democracy! In serried ran Its, with martial tread, W’e come iu panoply of right: Wo trar to wage with issues dead. Bat Using wrongs to fasriieo sad to I And high oar hearts with terra swell As millions 'nsath our flog unite To ring tho old protection's knell. And labor's hosts oondnst to light. cwoacs. Then pool out slogan to ths sky; Cleveland, Cleveland, our rallying sty I Bunch, hurrah. Democracy, Cleveland, reform sad rtotatyt Tie curs for rights of man to stand. Which pampered pride would keep la pay Aad mock tha ballot's stem command With lawless threat of bayonet away | Aad aara shell our flag ha furled.

iatMiaaMlMtndtai T1U troodou'a tea* front also* *r* awted And, ««■<. tha raloa obey. [Am Artaa, a* DwmU, viaal limitkioliwiMuiaiiHl Itnw and snap a nolSoa’a yriaa, Aad*wnyoarh*rites*o! hu, Into joar hull ti (mu u>* 11m oomaon pwptt'i aaerad <»»>*; To **«• thoir Byht with faarint braw. Thoir mandates pen lit oqooI Urn. |Hw«i Ollftoa, N. J. luut A. Tunaua. Oram lo XonmkM !*• Mr! i loft adtfod BA* O Boo. do too too*, to tho ool'j wo’U «o Tor Orator in Karawtborr O Boo, do too know you will h»i* no ohow 'With Orator in KonaM onite Bo O. O. P. oor terifihiyh; That Tom* uill wo nanoutar. Bo tin HeKia son srar win With Orator in Xoramboo. O Bon, do yon know that ths sosk will oraw Tor Orator in Boranbfcrt O Ban, do yon know yon sro oil too alow Tor Orator in Hotombar f iOono OBoo, do yon know wo ora oil in tow Tor Orator In Noratabor? Bat Baa. kora’s oioi lot thoyood ohaor flow Tor Orator In Notoawar. IChortu. Brooklyn. A no. 23. Tuu Wnxia. Itomocncy Fomrart Atm-" JaMoCVy af J^xodosa.” bat na aound o battlc-ory Bar tho oonaiot drawtea nick, Down with Protection nut Tntnkni Lotaaroily, hoy*, ottos mors, Aawodidin’oiahty-fouri Bona with Prateotk* non Mamaihaat eaoatro. Damaamay foronrl Hurrah, boy*, hurrah I Down with Protection and hSoXiulay'o Tariff low. Tta tho writlns on tho wail, “ bolt hay tatter to thoir fait” Down with Prat to tion noxt Ketwtwl It ahall ho no idlo boaat; * Cfosslmm t foods our eetteat h**t; Down with war taxes next November! Swells the cry from hill *&d piking “ WeMl elect him eoee again. Down with wv'UiM iitiit November tM iCtioru* Though tho plutocratic orew Shower gold, and Wa, Down with corrupt la* next 9 oven bur I O’er the lend, Lem there to ehoiw. They stall purchase power nstt&ote» Down with corruption next November I [Ckoru\ At tome mighty river rolls, \ Let ue rally to the palU. Down with robber tariffs next November I We shall wiu the world's applause* We •halt gum the people's cease, Down with robber tariffs nest November I tdaraa * A. MnH.

German Campilyn SonsAnt—4' I'aakss Do-wits." Mack Washington MoKlulay glrj Dls BUqim » erhsban. Dm nrm goal uwatUe Dili Uad ttni fraeh danehsn. Caoava—O McKinley, das war schleeht, Dean Tizn atad rorratttg; Dbeb Clerelead wtrd « niaehaa reeht, Dana ar lat blue Bad thaatlg. Protection 1st aur Battalat. Uad fcaaa uas nloht brtrtsgen, Die alto " Ktnd.etn-ladustrlo ” Bsdaarft kata ualtoraa wtageie. Cwoaca-Oh, McKinley wlrd ntebt mahf Seiches Uaalna trsiben, Dana Claralaad ketamt mtt atarkem Baar Uad wird star Jabie blslbsa. “Dai Arbaitalohowird groesear soio," McKiuley prophaietie; Das glaubteu abet aur allata Dta bloadaa Zinnplatta Laata. CBOKOa-O MoKialey, 'a ist nloht w. Dar * rbaitslohn tat niedot; Dta raioliea tlarraa aiad <a froh, Dia artuea Karla dawldar. Das aata Sohiff Araerlka Yor Uuheil so bawahren. Most sain tin neuar Stauarmauu; btark, tuauhtig sad erfabruo. Caoaca-O McKinley, via d»r hsisat Nag ala }eder wet ten, Harr Claralaad ist tier baste Mean Daa liobe SchiS au rattan. Daaaalb’ C easts tuar Jadarmana. Dam tiroaaau trie dtaa Ktalaaa > Dla Rochte dta dor Starke bat Dam Suhwaohen nloht vacaalaaa. Caoaoa-Fuar dlaaan Qrundaata atraben air. Dor wlrd uas ala eerfahiaa; Wlr hoffsu lm Moron; bar aaaobat Daa Claralaad aa erasedUa. a. i. a Marching to Victory. AtA—" JfarsMaa r»>'OU»» Osor**." Harr tb for diorer Claralaad. the friend at laboring meal And when ba la also tad ha'll ba aara ta help aa Tar tiaiaa are bard and taste high, we bare had enough of Baa. At we to maroblog to siotarx. •mn, Hurrah! hanahl baready for the frag. Hurrah! hurrah! for Grorar latda the way I Tariff reform la aura to win oa aast election dag. Whsa wo go anrshtag ta eictorg. Tariff reform la oar battle-cry, with which we'll win the dag. That's what wa are going to rota far, la what the Far Clara and Staeaara la the root, and la it tea ta •tag. Aa wa ga marching to rlatorg. | Chares. St. rr. Basxm the Nation. Democracy, Rope of Ala—" Cbluniia, Its Bans/IBs Oaso*.* O Damooraog, hope at the nstior, Thg alar la Ua rising shiasa bright. Thy eausa hath oar hearts' coosaoratloa. Its jus tics turns weakness to might. From Jackson and Joffarsoa descended To C!nreload, conragaoas and truo, Thg laadara hare arar defended The weak from the prtrilsgad cnonca The week from thb pnrilogod few. The weak from the pmdageJ low, Thg leaden haao erer dofeadod The weak from Unprivileged fow. O Democracy, hop# of the nation. Oar aountryuaa turn toward* gate* For aid to crash centralization Bra it slides the rtghm of the States. Theg know that their wrong* mil be mended. Far naear la rain did thog too; Thg laadara hare sear deleu Jed The weak from the prlrtlaged taw. | (.haras. O Daniooracg. hope of the nation. To thee Labor looks for release From bnrdens, war's aeadfal creation. But tramping tta movements m paaaa. To thao long tin pragora horn aeoaodad. Ta that gate tta faith oat enow; Thg landers hare arar defended The weak tram th* pririlsgad tow. iOwaa O Damooraog. hope of the aatnn, Thg aoao tor thg uauaa t tsnd arrayed i Hard money, aoll-mla. low Uiatson. Mo traato or monopolies la lrad» For than all oar efforts an blooded. For these Olaroland ataude firm and troat Thg leadaaa hare near defended The weak from tha prieilaced few. i.''*« ‘4

ODE MOST PROSPEROUS DECIDE i*T<,i'ertU IVm ««♦*»«< m waive in Ttm Tun Whn Tlultb Doubled in Ktwt Kind of BntMUk The census utlM show that oar national wealth (in sullllona) has been as follows: Uatwcd Tout pray* tty weefta fa - -. mtitr or, to mitUoKi. wiltioor. I860.86.054 *7.135 98,41? 618.463 1380. Tj.oil 1C.459 15,043 31.301 1890. 34,349 83.383 80.373 63,010 Our national wealt h doubled In the tea (at Tears. It ha^ahen exactly thirty lean rears of protection since 1800 to double oar national wealth.' r*M\ miltinr*». Bat the per capital wealth tells a still more startling story: mo... True value for of tax**. ■ m*****>*i •an* *303 S3* *14 9S7 616 capita ~ Uni axed To>->l **2k£i isso:::::: 's>t 514 • *4.9 *»»» 1890. S3? 816 483 999 While our wealth per head nearly doubled with the ten fat rears between 1880 and I860, increasing at the rate of $40 yearly. It has only increased at the rate .of SO oenta yearly In the past thirty lean years. Take some or the minor dtrlslons that mate up our national wealth: Value of fer.u», 1850. 83,371.675,43» Vatu, of £arme, I860. 6,646^046,007 Value of laruis, 1860. 10.197.096.7?3 lacrwse, 18501 > 1360. 3.37S.469.584 lucres.**, lb£l) to l#i»Q........ S.65‘2,t>tU»TG9 Ywtty increase If 60 to I #00 637.366.9M Yt»»ty taoiMM, U'et»to 1880 lTT.6vS.W8 For cant. wcj’m, 18C»« to 1860 XOH ter cent. incT'ne. I860 to 1880 In these twenty years the population more than doubled. The average value of our improved land was «u per acre la 1880 and Sid In 1860, an lnurease in the ten years of 65, or 45 per cent. In lae decade, lta value was 610 per acre In 1880, au Increase of 63 In twenty years, or 0 per cent, each decade. Before I860 the annual Increase In value per acre was 60 cents, since 1860 it has been only 15 cents yearly. Tbe average value of each farm In 1880 was 90,338; In I860 It was 68,851; In 1880 It was $3,568. Tbe Increase between 1650 and 1860 was 9983. The decrease between ■i860 and 1830 was 8683. The average value of larm land per Inhabitant in 2850 was 6142. It mcreared to6811 In I860 and declined to 6803 In 1880. The total acreage in farms at the three dttterent periods was as followB: I860. 1360. S9S.56C,eU 407,313.1 iSSW4....»t,...H... Yeartr increase. 11,865,193 With all the enormous railroad expansion and opening up of sew territory between i860 and 1880 terming had ceased to pay and tewar people went Into it. In 1850 the acreage was 13.7 per Inhabitant ; In 1860 It had Increased to 1^9; In 1880 It bad decreased to 10.7. For clearness let these facts be arranged tm tabular torch. For the whole United 8tatea we have this result: I860. Averse, value of farm a. 83.368 Per capita..... 143 Improved land per acre 11 Aorsace per capita. 13.7 ail * \03 ait i3.t ilr Our agricultural wealth ooubisd In the ten fat years, between 1850 and i860; but it failed to double in tbe next twenty lean yean of protection. The flguree of 1890 may chow that It haa doubled in thirty yean.

Turn to tin census art study our|masa> taoiures: 1800. 18*0. Capita i intc*t*d. 9583,246*861 *1,069*855,715 AwIMmmM. 134,025 140,433 Total twwM /JU’d. 9230,155,404 ^9378,878,966 318,878,966 w <>/ p-rodnot. 885,861,676 os.Tso.an.ooo as3.ooa 0MT.0S0.180 01.010.10*.SIS 01.88S.tWl.6TS *8,389.879,191 it’.nUr of wwitr, 957,085 1.311,5*6 3.TM.69S Lw then on*-»htrd of the menufeotrarlug in tad iudu.trlee. beet i .teoJ l^ewM'iiOo.Ooa'oat of tin 13,000.0 wsu-krn. The capital engaged In manufacturing Terr nearly doubled in tin tea t»t years between 1850 art 1880, and Out lltUa rnoro than doubled in the succeeding twenty lean ye ora. our foreign commerce tells the same tala, These are our exports or merchandise, ex. eluding sold and Oliver: I860. I860. _ 1800. Ivtporta into the F*lt*d State*. 9164,034,033 9336,282,485 9773,674,812 HzpartaJvoM the United State*. 10*.900.333 3103*3.453 6*8.308.830 lViH.Me of LH'to-i state# eeeeel*. 8,535.45** 5,353.868 4.424.49T > t'ntteO State* faaaaae *a >are<fa trade. - 1.433.83* 3,8*8,396 938.000 In the ten tat rears between 1890 end i860 our exporta increased 135 per cent. In the thirty lean years between I860 and 1800 our exports increased only 107 per sent. While they much more then doubled between 1860 art 1800. it was not until M70 they barely doubled again. The total gold production or this country and ootnage otour mints between 1850 and 1800 was hr ytars as follows: oaifesMse.so 83,61*.*33.50 68.846.18J.SO 89,877.309.00 35,918.363.50 * *■■■7,388.00 7,788,50 .Htiaieeteil* tile*.*•%,,** fYorfiteffon. 050,000.000 65.000. 000 80.000. 000 65.000. 000 80.060. (WO 88.000. 000 88,000,000 88.000,000' 80.000.000 80.000,000 *5.000,000 Totals.M..096J.OOO,000 S8T8,8S8,70*.00 The total previous gold coinage otour mints from 1703 to 1848 inclusive amounted to *86,345,031, ot which not more than $00,000,000 was in use as money In 1850 among 23,000,000 people. The addition ot 0800,000,000 then was equivalent to the addition now ot 094,000,000,000 la gold, or tour times the total gold ana saver In the world. This Inflation, without precedent In the world’s history, brought on an era ot speculation producing the panto ot 1867 aggregating a loss Ot $391,760,000. But while this loss ot *291,750,000 fn unwise ventures furnishing employment to a tew hundred thousand threw these employees suddenly upon the publlo tor support, these millions were hut the pennies we give to children in comparison with the enormous earnings and productions of the others engaged in legitimate enterprises, and the thousands In distress were but a fringe upon the millions prospering as never before. Tha panic cleared the air, wiped out every speculation and every risky business venture, and tbe decade closed w\th capital In profitable manufactures doubled, la farming doubled,ln shipping nearly doubled, In importing and exporting doubled, with the wealth of the country Increased from $13,653,000,000 to $31,201,000,000, an Increase In wealth *17,549,000,000, on which the loss ot 8201^ 700,000 was lesathpn 9 per cent., and tba wealth per head Increased from *591 to *993, within *0 ot what It is UKdsy. T. £> W. Where the Money Goes. t?re— ts* swine* (lfio*. 1 *»—*'«» ffewe.l The New York Would asks what become* ot the money that the American people pay through the tariff to the manufacturers and tavoredolasses ot the oountry. We are astonished that Th* Would cannot trace down that money in the light ot Its many great achievement* Some ot tt goes Into the campaign land ot the Republican parly as an Inducement to continue the outrageous policy which makes the rich richer and the poor poorer. The rest ot it helps to swell the capital of the “protected” individual. But not one cent flrta to way into trt pockets ot the laborer, tor whose ostensible heart! Srt tax is laid, 1