Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-07-12
WEDNESDAY. .......J JULY II, 1893.
New Schemes for q Banking System

New Schemes for O Banking System
We are disposed 20 hope that the people
have learned from the history of the Wild
cat banking of ante-bellum days that 1t
will not do 10 trust entirely 10 the legisla-
tures of the several States the power to
furnish the paper currency Of the coun-
try. II in the multitude of councillors
there * safety, as the Wise Man says there
il. then tho currency Of the future will be
a "safe" one Mr.. DESAUssURE. Mir.
Doo1YY. Hon. JASON Brown of Indiana.
Hon. jar. CHANDLER. and numerous other
persons declare that as the Federal Gov
eminent bonds upon which the present
circulating notes Of the national banks are
based will soon be no longer available for
that purpose it is time TO be providing for
anew sort of currency; but not one of
these gentlemen proposes to entrust this
most Important matter wholly to state
Governments or State banks. This is
hopeful sign. IL anybody can devise
scheme for the putting out of circulating
notes by the State banks which will place
their issue under federal control and pro-
vide for redeeming all those notes in
specie and especially il note holders and
depositors can be made as safe rs the
former now arc under the national bank
ing system, that new system will be the
one which will be made to suporsede the
uresent excellent natlonal-bank system.
As 10 the eonstitutionality of law
taxing State-bank notes Mr.. DooLSY says
not much. but he says enough His brief
remark Is that Congress has asserted the
power TO tax State-bank issues, and the
SupreIne Court has confirmed this as
sumption. we have had n great deal of
talk on the question which Mr.. DooLEr
4bus dismisses without discussion. Mr..
.DooLEY's plan we gave in full in late
issue We NAV have occasion TO refer to
IT hereafter He is what is styled level
headed man.
But tho Hon. JEFF. CHANDLEB's scheme
- more promising than MIR. DooLEY's.
After SAVING that State banks answered
fairly well iii the earlier DAYS of the coun-
fry. but wouldn't begin 10 do now, Mr..
CHASDLER says:
cit seems TO me that perfect system OF gov
orument banks ought 70 be easily devised. The
present financial Hurry demonstrates that con-
1ldence is the essential factor necessary 10 the
safety Of banking institutions. With the govern
lnent behind every bank In leland there would
DO absolute confidence. No depositor would
think Of Withdrawing his funds-in tact, each and
S,yery bank would be as strong as the national
Treasury itself. Under such conditions there
would be no panics, no financial stringency such
as now exists. To make i'self safe the govern
meut would neod 70 levy tax Of not more than
one quarter OF per cent. on all banking capital
md then enforce rigid inspectorshlp that would
prevent wrong-doing Oh tho part Of bank ofi-
Gals"
MIR. DISAUssURE's scheme Is a compro-
mise measure. He proposes that Congress
shall regulate the issue of the currency
but shall not establish nor authorize the
establishment of any national banks. He
holds that Congress has the power TO
make the notes OF the new banks legal
tender.
Hon JASON BRowE. of Indiana, says:
ave want the government 10 issue the money
and not forty-four States. with varying grades
Of credit. The government can make money a
legal tender; the States cannot, and we have
eeen too much lately OF disaster IN monetary
transactions to want to take chances with any
other sort Of currency than that Issued by Uncle
Sam"
OF course all these gentlemen favor the
repeal of the SHERMAN silver law.
We need not say much as to the Popu-
lists scheme of putting out in abundance
greenbacks which shall be a full legal
tender" Nevertheless, even the Popullsts
have their own notions, and will make
plausible appeals to the voters against con-
ferring upon any sort of banks the power
20 issue circulating notes
Nor need we say much on the questions
which must at once occur to every mind
namely. What will become of our State
currency in case of war? What would
prevent the National Government from
again leyying a tax of 10 per cent. upon
State-bank issuesl The necessities of war
and the consequences resulting from a
state of war have no more conscience now
than they had twenty OF thirty years ago.