The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1891-07-01

| UTy, anu OnU WHICH, ID unpniuiicicu. luo
government exacted Of the banks frequent
reports and rigid examinations and re-
quired them to keep in their vaults one
fourth Of all their deposits, and, by these
means the depositors were amply secured.
] The publicity Of its condition frequently
prevents schemes for private ends by its
officers and stockholders.
Following the adoption Of this system
is almost an rnbroken line Of fidelity and
good faith with the patrons Of the nation
al banks. They cannot become monopo
lies, for by the nature Of their organization
they cannot combine. The only serious
charge is that they have grown rich
They have not individually amassed Tor
tunes, but they are universally sound II
is true that in the commencement they
made money by their circulation, but
that Is not true now, as evidenced by the
report Of the comptroller of currency,
1890, Gee page y. Ee says, at is we'll
known fact that the circulation Of national
banks Is IN process Of retirement. Dur.
ing the five years ending October, 1890,
the aggregate Of their circulation, based
upon deposits Of United States bonds, was
reduced from $976,8O4, ,1s9 to s124, 4,95s,730,
showing net decrease during FIVE years
of $151, ,345, ,463, decrease for each year
OF $30.260,090." This is more significant
when we take into account that there
was during that period an aggregate in
crease Of $50 national banks.
1t is true that the issue Of notes was
profitable when the governments per
cent. bonds were at and below par. Then
money could be made on the circulation,
but with per cent. bonds sf12O, circula-
tion Is Of no profit. Itis plain to be seen
that this voluntary withdrawal would not
take place II profitable.
Compare investments In bank stocks
with investments in other stocks as an in
investment for dividends. II Is not diff
cult to find other stocks paying dividends
from per cent. to 90 per cent and more,
but 1t is rare thing 10 find a national
bank paying over per cent-tne MAORI
ty OF them pay not over per cent. 1t is
the good name that they now live on-the
fruits Of well-merlted confidence.
A return to the old system would be to
the detriment Of the depositor rather than
to the banker.
Only 10 the sense 10 which money
means capital, do we want more. In the
sense In which II is used as a medium Of
exchange to facilitate commercial trans
actions, the only test of the amount neces.
sary Is the amount that can be maintained
at the specie standard. Danger is ahead
when we depart from this. Money must
have an intrinsic value, the same as any
other commodity.
What the farmer wants is uniform.
non-auctuatlng money. This Is true Tor
the reason that he cannot from the nature
OF his business be at the center OF trade
and take advantage OF fluctuations.
Money systems will not prevent panics
as long as people speculate and borrow
more money than they have means TO pay.
While this continues, just so long will we
have panics and forced liquidation. These
troubles cannot be righted by legislation.
The simple old rule is inhexible In ils op.
Grafton, that OF supply and demand
Legislation upon these economic ques-
tons Is dangerous. Last November,
when the whole financial world was trem-
bling in the balance, the small part Of The
trouble was The gold and the currency
The greater, the confidence and the ex.
changes The little slips Of paper, checks
and drafts, with which we pay our grocer
aud merchant, are placed by them to their
credit IN The hank, and they, in turn, send
their draft 70 the wholesale house and 10
The manufacture. at the large centers, and
they are again taken to the bunk and
placed To their credit and by this means
no actual money changes hands. Ii is all
owing 10 the confidence based upon the
gold and currency In The bank II wanted. |
This exchange amounts to o21< per
cent. aod the gold and currency TO ~ per
cem., and this Is what Is unbalanced by
wantof confidence, and confidence Is lost |
by Legislation, tending to overturn well es-
tablished financial systems. Legislation
against banks was the principal cause Of
the panic OF '87.
After 100 years Of national existence,
there hiss come certain settled conditions.
The constitution Of the United STATES may |
be regardsd as one, also the Consultations
Of many states.
The treasury system in tie ,uMin should
brone And IL is my firm belief Ihs, the
national banking system IL such thaiit
should be protected and extended BY
wise Inv after all tho national debt Is paid