The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-08-13
Facts In Finance.

DEFENCE OF THE NATI0NAL-BANKIEG SYSTEM
AGAINST TEE COMPLAINTS OF CoMMUNIsTs-
FALLACY OF THE FIAT-MONEY THEORY-PA-
PIERS READ BEFORE THE BANKERS CONvEN-
TON AT SARATOGA.
SARATOGA, N. Y, August 1.-THE Bank
ers' Association spent most OF its session to-
day listening to the papers promised on
Yesterday. That by o. Q. Hale, cashier Of
the State National Bank Of Keokuk, on
Subsidiary Coinage" recommends that
Congress provide by law for the redemption
OF subsidiary coins in legal-tender coin.
This would relieve banks OF unavailable
funds and give currency to coin, extending
its circulation to the profit of the Govern
ment and convenience of the people. The
paper BY J. D. Hayes, OF Detroit, on 6 Hard
4 Times" is particularly severe on those
who prescribe unlimited issue OF ire
deemable paper-money as remedy, and
y who would have national banks done away
with as monopolies, and shows that ma
iority OF bank-stock is held in small sums :;
that Of 20S,4 1856 shares in all banks, only 767
persons own over 500 shares each, while in
PENNSYLVANIA alone 80, 233 own one or less.
There is no exclusion, but oil having money
are at liberty to invest in bank-shares il. they
wish. Bank.shares are largely held by
widows and orphans and small Investors.
Regarding taxation, the national banks held
S343, O00, 900 OF the national debt, and they
paid taxes to the General Government OF
a. .076. 0s7, and to States, counties, and mu-
nicipalties 50, 701, 1872, being together S2,lS2-,
s19 more OF taxes paid than they received
on their bonds. The loans by banks and
bankers In 1877 was 250 per cent. more than
was loaned in 1860, and millions OF money
are vet waiting for profitable and safe in
yestment. Who wants money, and what
do they want it fer2 There are 81, 500, 000,-
900 invested in railroad bonds and stocks
that do not pay any interest there are
5000, 000,0 600 hopelessly tied up in shipping
that pays nothing. Who wants to borrow
money and give good security to build yes
sells TO carry grain fifteen hundred rules,
from Chicago to Buffalo, for one and a half
cents per bushel? There are 100000, 900
( tied up In iron furnaces and manufacturing
establishments doing nothing. Shall we
build fouring-mills when we have now
enough to make twenty EIGHT million bar
rels yearly Do the amount OF failures
argue in favor OF investing capital in
b7lsinesss Among the number last year
were some of the Oldest and supposed
to be solvent firms. There were in
1876 2,91S distilleries and 3,293 brew
cries, together 6,211 establishments for
making spirits and beer, against 2, 0s9 ma
tionai banks. From which OF the two
sources comes the greatest amount Of suffer
Ing and misery One fills poor-houses, asy-
Slums, jails. The capital Of the prudent and
industrious held by the banks pays taxes
aud supports The whole fabric OF society.
Destroy or distribute capital on the pro rata
basis, and the whole system OF government
will fall to the ground. and we should re-
lapse into barbarian and ruin. More money
which promises nothing would be only
neagerapproachto becoming nothing. This
convention should give no unc ertain; sound
in favor OF honest money. People need
money which will he redeemed at one huns.
bred cents ON the dollar. Let us as o nation
be honest with ourselves and our creditors,
and NE will be respected, and hard times
will disappear. The last cause Of bard times
mentioned was from young men OF educa-s
tian rushing into business Wit hout practical
knowledge. Having means OF their own or
hsiped by friends, they start without special
knowledge OF the business or people with
whom they are to deal, The general result
10 failure, and the equence Is large mum
sbsra sa ever place Waiting for naatbing to
turn mn TOO Jszy 10 work, too proud 10.
l beg. they are on the watch for an opper-;
tu1sty to Eve without doing eitlar. Some
fhsnK Tor nothing II what they want. The:
gresnbaek Is the only Thing thet seems avail