The times. [volume] (Richmond, Va.) 1890-1903, 1893-01-13
Is OUR NATIONAL BANK..sYsTFu
GOOD ONEp

IN the arguments that The Times has
made for permitting State Banks to Issue
noes If they desired to do so. /. has had lit
Tie to say aginst the National Bank sys-
tenn. A writer in yesterdays Dispatch
lauds that system as beyond question
the most perfect ever presented TO the
public"
The Times, however is very far from
thinking our National Bank system the
most perfect that people could have
10 the contrary. The Times thinks that
with one exception, it is the worst svs-
tenn the people could have. The feature
that makes its notes good as Currency
IN every part of the United States Is
us most attractive one, but we DIR
chase that benefit at cost far too bieh
TO pay for 1t.
The true functions Of banks is 70 fpr-
nish to the people a safe place for keon-
ing their money, to lend to those who
want money temporarily and to make
colectlons for a commission The issu-
ing or notes is. of course. only a part Of
the business of lending 10 those who
need accommodations. The banks flInc-
ton of lender of money is the one that
the pubic Is most concerned about and
most interested in. If the banks sunnlv
the people freely with such accommo-
dations, they can afford 10 disregard any
shortcomings in them in every other re-
spect. This is the point at which thera
is vital need for banks.
Now the national banks start their ex-
lstence with national bonds. They aro
porn ana created as national organiza-
lions, they take their breath from the
centre, they tend from every point 70
the centre. they are essentially COW
rahzers' They start nowhere but in com |
mercial centres, and they will lend 10 no |
borrower who lives out Of the sight Of |
the president Of the bank. They conse- |
quently fail absolutely to supply the sin.
gle great need that the great hodv 90
the people have for banks. They are
centraiists Of style and fashion. who
nave no sort Of use for their country
cousins.
some one has written a letter to the
New York Journal of Finance on tbis
subject. which that paper publishes as
an editorial We quote it. 1t is well
worth reading:
IL might be well for Congress 10 wait
before taking action toward any mate
RAJ change in our national banking svs-
lcm' IL is certain that under the new
'.,il attention must be early
DD 20 l.. |
er that the work should be done I'm ac- |
'ordance with some studied system than
~ patchwork amendments. The re-
ifement of the Government bonds win |
iecessllate the adoption of some other
security Tor circulation, but il Is by no
means certain that this will be the only
nodlilcation that will tend to the i'm
rovement of the system
a people living under laws which have c
net the emergency that caused their 7
uopuon, and which have stood the test
l experience of generation are ami n ,
wen upon merits and forget the def. /
lencles or the systems that they erected II
o IL is with our banking structure II &
hsWcred our needs in time Of peace as c
ell as in time Of war and no dlsposi- !
on is eVinced TO inquire into methods | II
" Its Improvement. q
Yet evils exist under n II has 49, q
ded q currency that is equal in value C
ON one end or the country TO the other q
:. an know that the mass Of its issues u
40 their way to a few great CONNER {
az centres. and leave sparsely settled
caIitIes without the money necessary 7,
carry on their transactions. The Nest =
Souen borrow from the East, and n,
y" sSur .he TIDE OF money moves from
e Atlantic Coast toward the great az
'uilurs1 sections. 10 return only when -,
mas done Its service In marketing the r
ops no one stops TO think that this .
mutton ID due to that equality of value L