The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-10

II is by discussion that truth IS arrived at,
and we are therefore glad to have our CORE
spondent's remarks Of yesterday in opposition
to the views THE TINES has put forth con-
corning State Banks of issue. His remarks
were well considered and therefore worth
reply. which we shall endeavor to make.
We must at the outset repeat what we have
said whenever the subject has been alluded
TO. The TINES is not advocating any special
scheme for State Banks of issue It's pointing
out the fact that our currency system must soon
be recast on account Of the rapid payment Of
the public debt, audit has stated whatit thinks
strong arguments in favor Of the proposition
to issue. subject 10 such restrictions as may
be wisely provided State Bank notes in place
of National Bank notes, but II rests at that
point leaving itself at liberty to advocate or
oppose the provisions as 1t may ultimately de-
termne to be wise, and our remarks of this
morning are likewise limited TO that view of
the case. Our correspondent attributes the
inability of the Alabama lady and the Wythe
county farmers TO borrow money on their
farms to the money lenders fear that when
he calls for return OF his money the borrow
ers will embarass and imperil him in. the sale
of their lands by iniunctlons.
Now we reply to this that in Richmond city
and in all the cities Of Virginia loans on real
estate are a fayorite investment. Whoever
owns city real property IN Richmond feels
confident that he can borrow TO about two
q lot o1t b. isIt
money. Ii is not TO the point 10 say that
banks will not under any circumstances DO
any considerable business in the way Of lend
ing money on real estate, because whilst that
may be so the owner Of unincumbered real
estate has credit at bank on which he can al.
ways borrow money.
Yet the law in Richmond is exactly the
same hat il is in Wythe county. The Wythe
county man can secure no injunction that the
Richmond city man cannot secure. But fear
of injunctions restraints no lender in Rich
mond. II il plain then ,ha, this is not tho
cause of the Wythe county man being unable
10 borrow in Richmond. He cannot borrow
in Richmond because the Richmond money
lender knows nothing of the value of
his land. and knows nothing of the character
for honesty OF the proposed borrower.
Money is lent upon knowledge of the charac-
ter OF the borrower a. much as upon the value
Of tho property. II there were "a store Of
money at the county courthouse of Wythe.
managed by Wythe county citizens who
know all the people of Wythe. an honest
farmer with good farm could always bor-
row money because those who had the lend
ing of il would know they were safe in the
transaction.
Our correspondent argues that these notes
would necessarily wander off some distance
from home where. being unknown, they
would be discredted and at once returned for
redemption. which would make it necessary
for the bankers to keep 80 large a redemption
fund on hand thore would be no profit in the
business.
Undoubtedly if the banker lent his notes 10
o man who was going 10 send them to New
York or any other point in general commerce
outside the range of the banks credit and in
fuence, they would come tearing back
Immediately demanding coin. But if the
banker did this he would disappoint the
whole scheme and idea Of local currency
He would not lend bis notes TO such bor
rowers as these. Being notes issued upon
the idea that they were to be neighbor-
hood currency the banker would do
all in his power 10 oonfne them 10
neighborhood transactions. Ii borrower
wanted 100000 to send to New York the
banker might have no money to lend, But if
a cattle dealer wanted $4,000 to GO into the
backwoods. TO buy young cattle he would
have the notes for him. because he knew they
would DO long time coming back. and when
they did core they would be brought by
citizens of Wythe county. who would bring
them for deposit and not for redemption.
We have heard il argued that such State
Bank notes would necessarily be At discount