Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-03-23
sive, and yet unremedicd for nearly q gen.

iul junction OF representing NJ "--orcx,
changing values: the volume OK cuIIuIl. ~.
especially In the forms chiefly useu yn,-;aI
quired for the lnboring and indus.,iia'
classes, relatively TO our increasing pg9P and
ton and trade. constantly diminishs", On
its disbursement into the channels OF cJ
merce and industry OF all kinds. enoc.Ssu
only by the process of boarding INTO .n1
Treasury for weeks or a month many hit ts
lions and then dumping into the MAJ l ny -
what n necessary to dlSgorge the cOne'',
the Government: and this at the VIII 9n;y'
not 10 say the caprices or the personal III
terests Of the Secretary of the Treasury vi
his personal or political friends. make up
altogether o monstrous medley OF ms
government that the intelligence ana pa,
triotism of the American people can "a an"
ought to correct. JUNTUs, Jh'
The Intolerablc sub-Treasury system.
There are Increasing evidences that tne
business of the country cannot any longer
endure cheerfully. il it can endure at an,
the injury done it by the Government
system of Withdrawing from public use INC
money which represents its revenues: Inc
Commercial and Financial Chronicle OF New
York points out that during the month OF
February not less than eleven millions ca
dollars net was taken from the channels
of commerce and taken. OF course, IN
addition 10 the large sum which already
the Treasury held in it's silent and para
lived boards. Such q system, saws inc
Chronicle. I'm its very nature involves nrsI
Withdrawing currency from commerce, anu
then returning 1t in bulk" and "canno1
help producing irregularity and uncertain
". the worst hindrances to legitimate
trade"
Mr.. Window, as we pointed out OF the
time-committed a deplorable error IN de-
handing Of the national banks the money
Mr.. Fairchild had lent them. without SUP
stitutlng for the Fairchild plan one when
would have Its advantages and wouiu
avoid its faults. Those faults we're mat
the lending was a secret procedure. ana
rested entirely upon the preferences OF the
Secretary. He could have his pet banks,
he could reward political or persona,
friends, and he could deny to banks he ala
not like share of tho funds which they as
much as any we're entitled 70 have. But these
were faults which it would have been easy
TO eliminate. The system need not be one
either of secrecy or layoritism 1t nav De-
on the contrary, one rs public as any otnet
operation Of the Treasury. and proceeding
upon rule which viii he fair to all banks
and to all parts OF the country. linus
amended tho plan Of Mr. Farchild would
be right, and its adjustment under Mr.
Window. instead Of such amendment, IS
public menace now. and may be n pubic
calamity Of any time when circumstances
shall cODspire to bring that about. As the
New York journal declares pane can he
made by the Secretary of the Treasury ~
will. He has his hand Of the throat Of the
commercial situation he needs only TO
tighten his grasp.
ANY remedy for the most vicious situa-
ton must be Of one sort, simply IT. must
keep the Government money IN touch with
the cOuntry's business, as every other
civilized nation in the world knows and
practice. And while those who saw tns
fifty-fyC years ago, and who pointed out
the practicable iIupOss hillty OF working
safely tho sub-treasury system which was
then forced upon the country. wer0 wrong
in their conception that there must be a
great bank of the nited States, IN order
to have sound fiscal system, they were
wrong only at that point. and at that point
we have improved upon their system so
completely as 90 place It beyond attack.
The national banks make the places OF de-
post which tho Government needs. Ihey
are safe. they are located IN every part or
the country. and they are the legitimate
outgrowth of business needs. To place IN
them the Governments balances, Us ar.
Iairchild did. was sound finance. and 1t
needed only TO have been done publicly,
Systematically, and without favorltism.
We have already suggested that the Gov
ernmcnts duty in this case can be dis
CHARGED, and the public interests can be
served 10y system Of Treasury deposits
with the clearing house associations. We
renew the suggestion. The clearing houses
are organized in all the cities OF impor-
lance. They are at once the strongest and
the most conservative feature OF tho nG-
tional bank system. aside from the Sc
curty of its circulation. They may be
employed a. the Governments banker
with absolute safety 10 1t and with entire
convenience To the country. The system
of doing this NAV be made az open and
candid as are the daily payments over tho
Treasury counter. Tho Treasury then
will not be an absorbent aud disturber OK
business life-bloOd: on the contrary, tho
regular aud steady flow Of circulation will
include it as it now includes all the other
and in their aggregate infinitely greater
instrumentaltIes of finance which have
been created by commercial needs.
The suggestion here is TO make the clear
ing-house associations repositories, pure
and simple. 1t is not proposed TO lend
them the funds any more than the state or
PENNSYLVANIA or the city Of Phlladelphla
lends its funds. The security Is furnished
by the aggregate sOlyency OF the banks,
secured and assured by their organization
as cleariug-houses. The deposits would
be made. not with individual banks. tut
with the clearinghouse associations, and
they would arrange for themselves tho
custody Of the funds. The whole trans
action would be upon the faith and credit
Of the association and Of all the banks con-
tanned in it.
We are not to overlook in this cOnnec-
ton the vital relation which the national
banks hold TO the business Of the country.
As Mr.. Abraham Barker pointed out in his
communication addressed to The ADle-ic1n
december II, 1850, the funds af the trust
companies and of private bankers are de-
posted with the national banks. 1t is they
who keep the country's money lover
night" The explanation Of this Is simple;
they are closest 10 the business movement.
Other institutions may be great borrowers
and great lenders; their use of money may
be as large as that of the national banks.
or even more considerable. but in order to
be in touch with tho circulation they
must employ the banks. And this adds
force to the suggestion that the Govern
ment has within easy reach repositories
whose employment would entirely cure
the evils which business now suffers under,
and which may az any time Of unusual
stress produce evils still greater.