Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-11-28
BANKING DEVELOPMENT.
1t Has Not Kept Pace with Growth In
Other Branches.

From the Commercial Bulletin.
In strong and convincing argument in
favor of increased banking capital and facili-
ties as essential to the development of Mexico.
the Findncier Of that country points out the
intimate connection between the extension of
banking and the advancement in general well
fare and commercial prosperity in the Central
and South American states. This is COM
parison to which attention may well be invited,
and from which the United States. no less than
Mexico, may learn a timely lesson. The devel-
opment of banking and the increase in its
facilities have kept pace with the advancement
of civilization and commercial enterprises
throughout the western world, and banking
capital has proved itself the most potent Of
pioneers and civilizers and the very life-blood
OF useful enterprise and great undertakings
Progress i'll all its forms has been greatest i'm
those countries in which banking facilities have
been the most perfect and most extensive and
periods of industrial and commercial advance
ment have been periods Of growth in banking
operations.
In the United States during the past forty
years the increase of banking facilities has
been surpassed only by the growth of railroads,
and has been more rapid than the increase in
wealth, steam power manufactures, commerce,
agriculture, or population. Realizing as We
must the important part which the develop
ment of banking has played in the great work
of subduing q continent. and in the develop
ment OF our vast resources il is impossible to
view with compl6isance any unnecessary OBJ
stacle to the continued increase of banking at
rate of progress proportonate to the growth
of population and the advancement of the
great work of industrial conquest and material
development to which il is the handmade
1t is no longer true of the United States that
banking capital is keeping pace with national
growth in other branches. Our laws have ar
bitrarily checked the development of the ma
tional banking system after ii had become so
popular that state and private banks are check
ed in growth by the public preference for the
national system. Until the present year the
increase in banking capital had gone hand in
hand with the increase in population and mate
rial development 1t has now been needlessly
and unwiseiy compelled to fall behind when its
advancement il most necessary. The growth
OF banking during the current year has been
Inanifestly inadequate and out Of proportion to
the growth of the agencies which it serves
Whether this obstacle of national progress ia
to be removed rests with Congress- It is in the
power of that body to facilitate the extension
Of the national banking system, and if the arbi-
trary, illogical, and indefensible restrictions
now preventing growth are so modified as to
aid it new banks will spring up as rapidly as
during any prior period, and will be scattered
throughout the length and breadth of the land
and minister to the needs of trade and supply
the means OF progress from the Atlantic to the
Pacific and from the Canadian border to the
Rio Grande,