The Providence news. (Providence [R.I.]) 1891-1906, 1893-07-27
OUR BANKS.


dition If the banks Of Providence, n.
shown by the News yesterday, is sim
ply typical Of the Rhode Island method
OF conducting business in general.
1t is altogether probable that the
great bulk of all the important bust
ness Of this city is in substan tally as
good condition as are the banks. It is
the Rhode Island way to neglec; bril-
liant present oppori unities to be always
in condition to discoun, the future.
In the case Of the banks at the pres
ent juncture it may well be ques-
toned if they have not adopted an over
conservative course. To preserve their
large surpluses and keep their ability
to meet any possible emergency utterly
beyond question they have pursued a
course during the past several months
that has undoubtedly contributed in no
small degree to the money stringency
in the West.
Our banks, In common with the
banks throughout the Eist, have for
two or three years been quietly with
drawing their funds from certain lines
of Western investments. This policy
has been approved by all seeing
business men. 1t WAS i'm fact forced
upon the banks by the growing >reck-
lessness of western spectators and the
overstrained notions of the illimitable
resources of that section and their
quick Standardization. Sill its enforce
meut has contributed in no small
degree to expediting the crash that has
befallen the West.
The withdrawal Of funds from the
West did not lead to more liberality in
treating with Eastern borrowers. In
many instances the policy adopted IN
the West was made applicable to home
business, though there was actually no
reason or excuse for such course.
While there have as yet been no no
table failures here of established enter
prises, there have been abandonment and
Of new enterprises, the effect
of which Is nearly as bad. Several
moss promising projects. which would
have added largely to the volume of the
manufacturing and brought hundreds
of skilled mechanics to town, have been
because money could not
readily be had to prosecute them.
O.her business enlargement ampl y
justified, have been indefi nitely post
poned, If not wholly given up for the
same reason.
The policy of the banks, aided and in
a measure justified by the general feel
ing of timidty, has caused money to
shun profitable employment and lie
dormant in vaults.
The present is time when the banks
ought to be as liberal as the business
conditions justify. They are in posi-
ton to correctly estimate the value
Of such waves Of public distrust as
that now enveloping the country, and
hey know that it is two-thirds senti-
ment. They should manifest a spirit
Of intelligent courage and demonstrate
by their policy that the causes for fear
are actually far less than the excited
of the general public sug-
,ests.
Our banks could do themselves and
the city service almost beyond esti-
nation If they would at this time model
their policy upon their own knowledge
rather than upon the ill-judged, unjus
tilted, vague and almost superstitious
fears and qualms of an agitated public.
There will be no runs" upon any of the
banks. They have no real cause to
stuff their vaults with cash while busi-
ness needs it and is willing and able to
pay for its use.