STATE NOTE ISSUE.

Evening Post, Volume LXXXII, Issue 63, 12 September 1911, Page 2

STATE NOTE ISSUE.

TO TO* KDtTOft. Sir,— The proposal in the Budget to issue all the nates required by the bunks of this Dominion tanhtw the adoption ct one practical step in the BOheme for ft State Bank of Isßite. When giving cvi» denoe on this question before tho tiegi»la» tive Council Committee last Year, I coh« tended that lftnd, mercantile > and Stotn seouritlos are equally us good assets to hold in resatve tor the issue of State notca as gold. Nobody can say that lend, mor. catitile or State bonds, nro not bo good m gold, booause tlieso Fcountidß arß ex» changeable for gold day by clay; therefore, it is obvious that thepe tiß»et» are th» equivalent value of gold. Now that the Premier is willing to tp« cede from the attitude he lms |iltherto held against the isßiie of State notes, he might as Well go the whole hog nnd give the country a complete currency schom» in lieu of the partinl measure proposed in tho Budget. A complete meauure would be far preferable to tho scheme of cooperative banking for farmers, which ia to supplement tho issue of notes to batiks, for this supplementary pro'joot will piovs cumbersome ahd complicated, and will cost more to mnnage than tho direct lepuo of credit notes to farmers ahd traders by the State. An isnte department will h»v» to be established to Btipply bankers' wtmK Then why not allow this office to iseuo notes to fermprs and traders in eschahgo for their land titles or t.heir Hens and warrants on Btoek or produce, and which assets nre equally as good securities Ms tho bankers' gold? This would be a simpler and far Icbs costly scheme to both farmers nnd country than the co-operative bankihff eugges. tion. We do not/ want a multitude of financial systems and institution*. Wo simply want a State Bank of Issue that will accept the fou»- classes of security mimed by me, i.e., gold, national bond*, land, and merchandise, making advance* to tho full face value, in tho cosr 'if gold and State bonds, and from half t»> twothirds of the doolarod value hi thp ct\po of lnhd and mercantile securities. Bankers, investon. traders, and farmers could then obtain all the credit they aie legitim» ately entitled to, atid tho Htaio would have the most highly profitable aourco o£ revenue yet exploited,— l am, etc., P. T. MOORE, President State Currency Association. Johnsonville, 9th September, 1911.