Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-02-27
FRIDAY FEBRUARY 81. 1891.
The Observation-Disclosures System.

Those persons who can recall the days OF
wildcat currency in this country Will be
IN no hurry 20 have any measure resorted
TO by Congress to dispense with the exist
ing banking system. The objection that
the national banks are government pets Is
not true, or # true, not sufficient reason
for doing away with the best system OF
banking which we have ever had IN tins
country. There must be found some other
and better reason. The best possible
reason would be the origination of asystem
Of banking superior 10 that now in vogue.
Present the people with such boon and
they will be glad tosurrender the National
banking system, though it has proved IT.
self 10 be far more useful and efficient
system than any which this country had
ever previously possessed.
But the fact is that the existing banking
laws constitute the only laws ever in force
in the United States on the subject Of
banking which were of such a character
as 10 deserve to be called Il system"
There were in the western and northwest
ern States previously TO the war between
the States wildcat banks whose issues of
paper money were Of such q nature az TO
render them no better than so many GER
tificates Of deposit from o gang of high
waymen. 1t is on old joke that on one oc-
casion when HoRAcE GREELEY had lectured
in Indiana and was about to be settled
with for the lecture he asked to be paid
in good countcrfeits" on some SOL
vent bank rather than in such bank-notes
as his employers were about TO disburse in
his favor. We once heard tho novelist, G..
=. X. JANIS. ESQ, who represented the
British Government in this city at the
time, say that great trouble TO him-per-
haps he said the Greatest-in the United
States was that as often as he crossed
State line he found the currency of the
State he had just passed ont OF at heavy
discount The remark was occasioned by
the fact that the conductor on the railroad
train had just refused TO take Wheeling
bank-note from him, though it was as good
a. a Baltimore bank-note.
Writing on this subject recently we
asked Messrs. JoHS A. HAMILTON Il Co.,
of Baltimore, n question or two. to which
in their last circular they refer as follows:
1--WE think we have generally answered
the questions of the UiSDd'cb, but IN the
present instance, not having seen the bank
ing system rs proposed by Mr. Flanagan,
Of New York, we are unable TO sly what,
if anything, is wanting.
Failures under the national banking
system have been comparatively few and
losses to rote-holders nothing. This be-
cause of the system. for which reason we
should like TO see II perpetuated. Break
up the natioral banking system and tax
on solvent banks to meet losses inflicted
by reckless and unrestrained banking
might be anything but a small penalty"
This may all be true. but 1t is not to the
point for Mr.. FLANAGAN's proposition, as
we understand It, is TO levy a small tax on
every national bank as n means of pre-
serving the existing banking system and a
cheap method Of securing note-holders
against loss. The failures of national
banks have been 50 few and the note-hold-
ers have found themselves so well secured
that it Is hardly credible that anybody
would desire to substitute for such bank
ing system any system which would allow
the innocent public to be fieeced at will by
sharptrs in the financial world. Wedo not
recollect the amount Of the tax which MIR.
FLANAGAN proposes to levy upon the banks;
but cur recollection Of it is that it would
be 80 small as 20 bee no burthen at all to
the banks az the same time that II would
prove a perfect protection 10 the note
holders. 1t is easy 10 learn just what
amount of tax would be needed to accom-
plish the objects had IN view by Mr.. FLANA-
GAN. We all know that il is a common say
ing that the notes of the national banks
are in greater demand after the issuing
bank fails than when it is IN operation. And
the fact is not very different from the saw
ing for the note-holders are 80 perfectly
secured that nobody ever examines bank
note to ascertain whether the bank that
issued it is solvent or not.
Our Baltimore friends will understand
therefore that neitherw we nor Mr. FLANAGAN
propose OF desire to see the existing bank
ing system dispensed with until better
one shall have been originated. Let US
make haste slowly Rome was not
built in day, nor was our banking system
"evolvedn without much previous study
and labor.