Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-04-05
The National Banks.

We are not surprised that the writer OF
the following note should, although he is
n farmer and n member of the Farmers
Alliance, desire to inform himself thor
oughly in the premises before he joins
hands with anybody in the work of de
stroying the national bank system OF this
country or the work of substituting ire
deemable greenbacks for redeemable and
IN untried banking system for one which
has proved itself 10 be the best the world
ever saw up 10 this time. Currency
thinkers injure the industrial classes more
than they do the .moneyed classes. The.
latter can always take care Of themselves.
Whether greenbacks rise or fall in value
as compared with gold the Spectator real
ICES profit. Whether bank-notes are re-
deemable in COIN or not he never fails TO
uroye himself able TO make money by
dealing in them. The business of wreck
inc railroads we have all heard of. If our
present banking system were done away
with and system or no system like that
which obtained before the war between
tho States were put an its place wrecking
banks would probably become new way
of making money. wereply to "Sigma's "
fnterrogstories as well as We can in news
paper article. II would require more space
than we have TO spare to answer them
fully. Here Is his note
March %, 1891. :
% ne Editor Of the Dispatch'
Please do mo the favor 70 answer In your
wsekiy q few questions;
1. whatere the main features OF International
banking iaw'
2. What reasons are assigned BY those VINO
favor the repeal Of said laws
3. What DO statistics show as TO increase or de-
crease Of national banks and their notes, and as
their STABILITY and reliability 10 comparison with
other banks and banking-housesf
am a farmer, and have recently Joined the
Farmers Alliance, but have not yet heard the
reasons for the opposition Of tho Alliance to our
national banka
The letters Of Judge Hughes and other articles
IN your paper on the silver question Of the day
have been very interesting, and would like to
hear something similar from an advocate OF the
second resolution IN the declaration Of prlnci-
Piles Of the Virginia State Alliance OF 1890.
Very truly yours, SIGMA.
1. The peculiar features Of the national
banking law are those which guard the
note-holders from loss and make tbs stock.
holders responsible for mismanagemen,
and carelessness in the conduct Of the
banks. Bank-notes are better than green.
backs, which would at once decline in
value II this country were to get into Q
wsr with one Of the great nations oil
Europe. Those notes have ell the banks
property at their back. besides the Gov
eminent bonds deposited to secure Their
holders
2. The most popular reason seems to b
Ahe fact that the Government pays in
forest upon tho nations bonds held b.
the banks ct the same time that tho bank
recoiys interest upon the notes issues
upon the bonds. II Is called double In
tsrsst, and II Is claimed that tho Govern
ment would better issue treasury-note
directly TO the people without the intes
vention OF the banks. But II is easy \
- that the Government win have TO pa
the interest upon its bonds 70 somebody
and that If it can secure an absolutely SAT
currency TO the people by becoming %
curity for the banks without adding on
dime TO the amount Of sntorest the Go,
eminent pays II would be wrong to Ia
puhlc 10 turn them over to the tende
nrcise Of wildcat banks. and comps
thar 10 uss . currency over which Con
weos had no control whatever.
& Etatiztics show that up to last Novem
~ 80 national banks had gone into liqui
he<foo and iSo had becopa inaol vant. I'm