Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-11-30
The Banking system.

The Washington Post Of yesterday says
that that portion Of the report OF the Comp
troller OF the Currency which relates to tht
national banking system was given TO th'
press on sunday.
There Is no question more interesting be-
fore the country than whether the national
banking sy stem is TO be perpetuated or not.
For twcnty.odd years we have had "tbe
best currency the world ever saw" Men
take bank-notes issued by any national
bank in the land without ever looking 10 see
where the bank Is located. The notes are
good anywhere on this side OF the ocean,
and are rel orted 10 be not far below par
even in places In Europe-London or
Liverpool, for examples. 1t would be an
incalculable loss to the people of this coun-
try to have 10 return to the days when las
the story goes, and which, whether true or
not, tells what sort Of currency we once
had to put up With HORACE GREELEY
asked western man who was paying him
some money II he could not substitute good
oounterfeIts on an eastern bank for the
genuine wild-cat-bank money.
How can the national banking system be
perpttuatedy Government bonds are very
high and are becoming scarcer year after
year. What Is 10 be done, The banks
could, II is true, be carried on as banks OF
discount and deposit; but the fear is that
II the privilege OF issuing currency be-
comes worthless privilege, owing to the
high price or scarcity Of Government
bonds, the banks will cease to be national
banks and carry on their business under
State laws. Will the people consent to re-
turn to the old condition OF things and
have IN the thirty-eight States thirty.eight
banking systems instead OF one?
The Comptroller Of the Currency, as in
duty bound, discusses these subjects in the
annual report above alluded to. The Post
save that Mr.. TRENHOLM goes very fully
into the details Of the origin OF the system,
and asserts that there is not the least YES
tige OF monopoly attaching TO the national
banks. He shows how they have become
numerous, widely distributed, and intl-
mately identified with the varied industries
by which our entire population literally OBJ
tain their daily bread. He says:
"Tbe payment OF the 8 per cent. bonds,
the maturity In 1891 Of the a. per cent.
bopds-amOunting to $3.50, ZOO, 000-and In
1907 OF the per cent. bonds-amountins
to nearly S13S, COO, 0O0-have combined TO
produce a prospective scarcity in the secu
rites available 10 the banks as a basis for
their corporate existence. and this Is re-
flected In the advance Of these bonds to a
premium so high that every day their en-
forced purchase becomes more and more
onei GUS"
As bankers must look ahead, Mr.. TREx-
HOLM assumes that they are doing 50, aud
says:
"The fundamental postulates underlying
every banking system established by law,
whatever may be its form, must necessarily
be:
"First. That banks promote the general
welfare OF the community; aud.
Secondly. That the particular system
established by law j. the best obtainable
under the conditions prevailing at the time
and place "
In another place Mr.. TRENHOLM says:
"If the system could be preserved purely
as one Of deposit aud discount there would
probably arise an almost universal senti-
meut In favor OF bestowing upon lis pre-
seryaiion immediate and careful attention,
but Il il doubtful whether the banks would
fud sufficient inducement TO remain in the
system without enjoying some privileges as
to the issue OF currency, and II has been
questioned whether there Is power under
the Constitution for the charter of national
banks except rs instrumentallties for mo-
ney circulation.
alt follows, therefore, that any legisla-
ton directed tc the Improvement and per-
manent establishment al the national bank
Ing system must include some provision
for the maintenance OF a national bank cir
culatlOn, while, on the other hand. 1t APP
pears that whatever opposition exists TO the
national banks attaches to thsm mainly a
banks Of issue; and under our system OF
government nothing can be regarded as
permanently established until il has oh.
tanned the support OF well-settled public
opinion. Hence it Is evident that the pro-
blem now to be solved Is how to remodel
tie currency features Of the national bank
system so as to retain popular approval OF
them"
Ii Is time that the fnanciers of the United
States were seeking TO solve this problem.
Mr.. TRENHOLM is not ahead OF his time.
He wisely adopts WAsnINGroS's motto,
"ln time OF peace prepare for war;" II is
not too soon TO begin TO consider the OBJ
iections which we all know are to be
+, brought against the national banking sys.
TEN. II Is net too soon for the people
to!talk 10 their congressman on the
subject. The masses are not skilled in
financial lore as this Is to be found In the
books, but they know how the present
banking system has affected them aud theil
Interests.