The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-23
A FAILURE.

Whatever else may be taught by the
distressing financial experience the coun-
try has been going through for The past
few months, one lesson Is made clear and
distinct and that is that our national
bank system is utterly powerlesS TO stn-
der the slightest aid or assistance when
the country is in financial straits Sucn
aid as the distressed country has received
has come from no provision OF The ma
tional bank law contemplating exigencies
and providing for expansive processes.
Such aid as has been rendered has come
from open defiance of the national bank
law. That is a hard and fast code that
shuts its ears 20 every appeal that new
situations make and that viii see the
whole country engulfed in all the terrors
of financial panic before it viii relax an
iota and permit a banker 10 save himself
from ruin by making Judicious use OF
what is his own. Where did the national
bank law stand during the panic? 1t mad
not one suggestion Of relief except what
is involved I'm the ready receiver TO take
possession of the bank and wind II up. 1t
first tied the banker up from the free and
reasonable use of his resources so as 10
cripple him as much as possible and dis
able him as far as it could in his efforts
to prepare for the storm. ana when the
difficulties became so great that it was
simply an impossbility for him TO comply
with its artificial and unreasonable de-
liquidation with all its attendant loss
and ruin. This is no fancy or exaGger-
ated picture This is the exact ana true
state OF the case. The national bank law
has not come forward with single sug-
gestion OF aid TO those in distress. 1t has
had nothing but menacing frowns Tor
them. and whatever private ingenuity OF
organized effort has done for public rellet
has been done by open. defiant violations
OF that law which public authority does
not dare hold the vioiaters responsible
for.
Does Il not seem probable that we
purchase a mote as good in one State
as Il is in another" at a fearful price
when we pay at this rate for it? We
destroy all other banking that we may
have a system which forbids all men TO
use their resources unless they use them
under its cramped and artificial regula-
lions, and whea trouble and distress
come upon u.s. our system has nothing
better 20 offer in the way of relief
than liquidation and ruin to banks which
are perfectly solvent if their managers
were only let alone. Our resent expe-
rlence has. or ought 20 have, certainly
taught us that IN times Of peril the
reserve laws provided against such pc
RODS are obstructive restraints which
have 10 be ignored IN the interest of
public safety; that bank liquidations In
cash in such periods are an impossi-
bility which no law should ever pretend
TO enforce and which no banking system
should lead depositors TO unqualidedly
expect; and that there Is in the prlnci-
pie OF mems organized action. unhamper-
ed and unrestricted by positive law. a
means OF safety and rescue which no
stat ate law can ever secure or set on
feet. All of which considerations lead
mp logically and inevitably TO the con-
cusion that our national bank system is
tho most vicious "a njuil04a .
wit OF man cal devise.
Let us look az its workings for a mo-
ment II forbids any other agency 20
furnish currency to the people, and what
did II do for them when all OF C. 900 600
people were clamorIng for currency
with which to effect TIE Every day
exchanges Of life. and when. but for
It's prohibitions, each neighborhood would
have Immediately put out in that neigh
borhcod all that IT needed? In that Pc
nod OF distress the national banks fur