Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-15
OUR MAIL POUCH.
A Plea for the National Banks.
Editor of the Disnatch.

| To the Editor Of the Dispatch:
1 was pleased to see THE DISPATCH so pro
nounced in its opposition to the Democratic
| platform on the banking business of ouI
country. Their plans would soon wipe out
| our national banking system and establish
state banks similar to what afflicted the
country previous to the war. We would
soon have 40 to 30 different banking systems
instead of one. 1t is known to some of our
business men that under the old system
it was difficult to know what bank bills to
receive and what to reject when receiving a
payment, and wnen they took their deposits
to bank they would divide their bank bills
into three or four piles of different values
and would then have to wait the scrutiny OF
the cashier with the aid Of a detector before
they knew the amount of actual cash they
would get credit for on each days deposit.
How many business men want to go through
the same experience now?
Secretary Foster did well in his speech at
Vermillion, O., when he sounded the danger
that would result in case the contemplated
changes we're made, and 1t is to be hoped
many others will follow it up with thor
ough ventilation of the losses the country
and all the people sustained in comparison
we not hear more of 1t in the coming cam
paign of education" than we have
heard of measures Of not one-tenth the
importance to every voter in the land?
Secretary Foster suggests that the present
bonded Indebtedness say $3.50, 600, 600, be ex-
tended 80 years at per cent to be basis for
est would amount to s11, 100, 900 annually. The
present generation has paid its share OF
the war debt, and why not repeal the sink
funding the debt as suggested by the secre-
tary of the Treasury? The interest," on the
bonds would not be one-half the loss the
people would sustain by adopting the state
banking system in place Of the national sys-
tenn.
Our national banking law, while not per-
feet, is considered the best we have ever
had, and some say 1t Is the best In the worldl
Whatever defects are in the law can and
should be corrected by amendments to the
present law with the view of having the
safest and most perfect banking institutions,
for banks of issue as well as banks Of deposit,
that it is possible for honest men to devise.
Some OF our business men can remember
when they received nine-tenths Of their
collections in what passed as money and
one-fenth in checks: but now that Is re-
versed, and the same parties receive nine
tenths of their payments in checks, drafts
and exchanges and only one-tenth in the
currency OF the day. All of which demon
strates the importance OF having all our
banking institutions where money or its
equivalent Is received on deposit as securely
guarded, and their W hole assets and Iiabilf-
ties made public, and all their doings as
carefully examined into by authority OF
statute law as banks o issue.
At present nearly all shipments of farm
products are paid for at destination on pre-
sentation of draft with bill of lading at
tached. That enables the buyer to continue
on buying and paying the farmers on deliv-
cry with comparatively small capital,
and as the collections are made
through the medium Of national
banks they seldom meet any loss
But If our present sy stem is superseded by
State banks, as in former days, those who
collect by drafts NAV consider themselves
fortunate If they do not lose more than one
tedth of their collections through irrespon-
sible wildcat banking institutions. Yet,
strange to say, the Farmers Alliance is
striving to break down the national .
banks, when, in fact, they would
suffer greater losses and inconveniences
than any other branch of business.
They might find It necessary to collect
through express companies or come along
with every shipment and take the proceeds
home in their pockets. The same evils and
losses would affect all branches of business
in making collections outside their own To-
cality.
1t is strange that any intelligent man who
had the experience Of former days would
cast vote for the change. In fact they
should agitate and oppose 1t at every oppor-
tunity. SAFE BANKING.
PIrrsBURG, August ID.