The times. [volume] (Richmond, Va.) 1890-1903, 1892-08-05

~ov~pvxvxrs tJPFRyIsIoN OF BANKS
The Dispatch thinks the people ought 10
y. p,orycrtp by the government against
the nossibiiity that the managers OF some
State Bank may be a set of rascais VINO VIII
cheat them and leave lot OF worthless
notes in their hands.
We abhor the idea of a paternh protecting
,,>,.orrnent whether in connection Twin
hanks or with tariff. or with anything else
in business. The man who IS unequsi 70
protecting and taking care of himself IN the
s.r,,ccle 81 life need not look to that gov
e,r,oent 10 protect him because those VINO
would control such a paternal government
wopld for the most part be strong and scinsh
and not in the guardianship business All
that we want government to do Is to Keep
the mace and ses that A. does not trespass
mon the rights Of B.. and after that IS done
the province of government IS hiiea'
Leave the citizen then to WORK
ont his destiny.In his own way, encourag-
inc him 10 turn from the idea Of leaning on
tho government for support and eternaiiy
irving 10 get his nose into the public crio'
And beyond general provisions tor giving
recovery against stockholders after the eR-
banstion of the assets Of a Bank. what are
tbe protective measures OF government
worth in a banking system? Next TO noth-
ing. The National Bank law bristies with
provisions aimed at protecting the pubic
What National Bank pays any attention 70
the provisions that it shall lend only cor
tain ner cent. of its capital 10 one firm; thar
il shall charge only per cent. interests
that it shall not lend money on real estate
or 70 the many other prohibitions? They
are all openly and fagrantly disregarded'
and the provisions for examining Banks are
an absolute farce. The security OF the
nnblio in National Banks, as in all other
banks is in the character Of those who man
age them and the right Of recovery against
stockholders. Honest and capable men have
sound banks. and these get the business OF the
public. Dishonest incapable men manage
rotten banks that soon 20 under and disap-
pear. carrying ruin to those who have trust
ed them and this in the face OF the most
strineant provisions Of law to secure honesty
and intelligence on the part Of officials. The
governmental paternsl, protective idea Is
one of the fungus RrowthS Of an industrial
civilization that believes in the possibility
of legislating men into being honest through
aid of spies and informers. 1t believes that
honesty and character can be worked out by
the rule of three and that private detective
is better guardian OF sum Of money than
a clean heart and pure conscience. The
only protection which the National Banking
law gives to the public beyond recovery
against stockholders is the feature
reauiring United States bonds to be
deposited as security for note issues. But
the note issues Of National Banks are almost
over. and the long lease of life they have
had has brought almost all, if not quite all,
under conservative managements which
will certainly protect the notes they put out.
The benefit then ia imaginary, the poss-
bilities for good which are forbidden by the
tax on State bank issues are incaloulable.
Let the act Of Congress imposing tax be re-
pealed. and the country will right itself.
The Legislature of any State can enact such
laws as may give the notes Of State bank
a Just lien not only on the assets Of the
bank. but contribution from stockholders
sufficient to make up any deficiency.