The times. [volume] (Richmond, Va.) 1890-1903, 1892-12-28

Is the DOltOm y II TIC bbhN W
except on the Pacific coast. where the
fght for 1t Is to make a market Tor the
production of their mines. Inc very
nature OF the national bank system con-
fines them TO commercial centres, ana
they will not lend their money In country
districts. These. therefore. are without
any banking facilities at all. But a smat
fraction OF transactions in the commercial
marts Of the world are operated through
money. All these are effected by balanc-
ing debts against each other. The pro-
portion Of coin used in the transactions
Of the Bank Of France in 1856 was nut
4 IL per cent, bank notes and other
Instruments Of credit being used IN the
other IS IL per cent. The Bank Of Eng
land. in a daily average business OF
800. 1000. handled IA Of l per cent. In
coin. s. IL per cent. in checks and drafts,
and Il IL per cent. In bank notes. Ieie-
graphic and postal money orders now
dispense in a large degree with the ac-
tuaI OF coin or notes. Ac-
cording TO the report Of the Comptroller
Of the Currency of the United States OF
December 5, 1892. the balances at the New
York clearinghouse paid in money in the
past thirty-nine years averaged but "A
per cent. The report states, as the result
Of an examination Of the business OF
3.473 national banks on September Is, 1892,
that in the country at large but 9.@ or
transactions of 1891. 2O5,2l that day were
represented by cash, the balance, or @.6l
per cent. being represented by checks.
drafts. exchange. or other substitutes for
money.
Where. then, there is commerce, little
or no money is needed, because every
thing is done by exchange Of credits. But
in the country there are but few mutual
credits to exchange. The rural districts
must. therefore, have money, or a substi-
tute for it..
II the county of Prince Edward had in
II a citizen whose ability and character
were as well known over the county as
Major enters are in Richmond, his
lromissory rotes would pass from hand to
nand in Prince Edward county just as
gold dollars would. SO would the notes Of
a State bank at Farmville, known to be
principally owned and managed by Major
Ginter. These notes might not circulate
outside of Prince Edward county. but that
fact would not discredit them in Prince
Edward county. and by keeping them
there it would greatly add to their efficacy
and value there.
Few counties have a Major Ginter, but
every county has men of means who are
also men Of character. II these gentle
men are not prohibited by the law they
will form banks and issue the notes that
their counties require. In this way the
country districts can secure the currency
which they imperatively need.
So far we have argued the case on the
assumption that the notes OF State banks
would be at a discount as compared with
coin. But they would not be within the
borders of the State where they were
issued. The States are all old, settled and
conservative communities now. The cay
for starting wildcat" banks in the United
States has passed. That was the day of
new and rising States. No banks would
be started in Virginia, for instance (and
what is true of her is true Of every other
State in the Union now, except where all
the capital was paid up and the manages
ment commanded the confidence Of the
community. If others were started they
could never get their notes into circula-
ton. In time, through the process Of
evolution, to which we owe everything
that is truly valuable, the notes Of these
would secure confidence beyond the Dor
ders Of their own State and would circu-
late freely all over the Union. But at
first they would be unknown outside Of
their own State, and would. Of course. be
at a discount AWAY from home. This
would be all the better. When one Of
them strayed away from home it would
be Immediately sent back for redemption.
and knowledge of this fact would keep
the managers Of the bank always pre-
pared to redeem it when presented. This
would be a most wholesome rod held al
ways over them. The modern faciliti- IS Of
mail. telegraph, express and transporta-
ton generally would keep the notes con-
stantly passing through the process OF re-
demption, which would keep the banks al
ways prepared to redeem.
The case stands then thus: The Yam
KEGS meddlesome idea Of protection II
everything by statute law undertakes to
manufacture, medicate and prepare a cur
rency system and force It down the
threats OF the people. Disorder in finance
is consequently the rule Of the day. Eut
if the country would simply drop the pro-
tectige idea and let the currency dust
itself according 10 the needs OF the people,
evolution, working by the law Of supply
and demand, will furnish just so much as
is wanted and Will secure for that such
safeguards as are necessary to make it
sound.
On Friday last there was published in
The Times a long article received by tele-
graph from New YORK, stating that u
daughter Of Colonel Parsons, of the
J NAfuraI RtfIn. .nT I.., Aforementioned -.