The times. [volume] (Richmond, Va.) 1890-1903, 1893-09-10
VIOLATE THEIR CHARTERS.
The National Bank Act . Lsmsntabie
Failure.
fCommunicatsd.

and though the highest expression OF our
legislative skill. stands to-day condemned, |
furnish a cafe and reliable currency.
protested and dishonored, and defeated in
its every principal purpose Instituted to
has Well nigh suhverted all currency;
instituted to provide method of banking
corrective Of past and preventive Of future
financial ills and abrses,it has with unim-
portant exceptions bankrupted the whole
banking fabric and brought commerce 10
the verge OF panic and paralysis; iustitut-
ed to produce and maintain confidence. It
has shattered confidence; instituted 10
protect the humble and ignorant. IL has
dtspoiied the ignorant and humble be-
cause Instead Of money whica . cannot
srpply scrip or bastard checks checks
that don't bring mon ey-mu1t be excepted
Tor value or services rendered.
With few exceptions banks have tunda-
mentally violated their charters and
therefore exist in defiance Of law, and gov
eminent dare not call them 20 account In
defiance Of charter they have remained for
weeks, with no prospect Of early recovery,
below their Legal reserves and government
dare not call them TO account; have
wherever clearinghouse exist, issued in
defiance NJ charter clearing house certi-
ficates, which are really currency. and
government dare not call them TO account,
and Though virtually undo protest they
continue business ia violation ot charter,
and government dar, not call mem TO ac-
count.
Government stands helplessy byand sees
its solemn and august act violated in every
material point AMI dare not interfere.
Why2 Because If II did, and closed rs le-
gally bound 10 do, every bank ia default
or contempt. IL would disrupt society ard
would itself be superseded by anarchy
This law is the profoundcst expression Of
legislative wisdom and nothing better can
ever be expected from such a source Beau
tiful law this National Bank Act. work
able at the expense Of civilization itself.
So wise 4 law should ever be kcpt intact.
unless indeed 10 make it more stringent
and therefore more unworkable and perni-
cious. At least 50 the majority says, for
in:ei ference, except 10 place additional
restrictions upon personal liberty is re
sisted and resented.
The defects of the National Bank Act
have long been recognized by the thought
ful, and its weakness often demonstrated
but all objections have been successfully
met by Oh. the notes are good every
where and the holder always secure. But
granting security, may not security be
purchased at too great expense2 Thus
what avails security If notes are not 10
be had and If for lack thereof commerce
IS arrested, manufactures stopped and ae-
riculture embarrassed; and farmer can
not get produce TO manufacturer, or
manufacturer TO merchant or merchant
10 consumer. or consumer buy? which IS
much the case now. If this is the cost
OF security, less security but less embar-
rassment, Is 10 be preferred. Indeed II
thing IS so barricadcd with security as
10 be unattainable when needed its very
atHsfFr fr
What has always been supposed the best
and wisest feature OF the National Bank
Act namely the security Of the notes. has
proved its worst feature because every
thing has been sacrificed to attain f.
though note holders are entitled % pre-
ference over other creditors To make
them specially secure Is special iegisla-
ton, and special legislation is always vi
ciOus and perniciOus. because II is simply
sacrificing some for others and generally
the many for the few BY the way a GU
rious effect has developed from the Sc
curity OF National Bank notes Ordinari-
ly panic or distrust hides away SUBJ
stancd viz gold and re ects shadowsViz
notes but now shadow and substance are
equally hidden away. regardless OF the
more than probability that when these
secure notes are again brough 70 light,
they may be worth 40 or 30 per cent. less
than when hidden away For gold 10
bear a premium is now natural, but for
greenbacks. bank notes and specially sill
yer dollars intrlnsically worth about IS
per cent. Of gold dollars, 20 bear a preml-
UNI or be hidden away. is comical indeed
whimsical.
That the National Bank Act is princi-
ally responsible for present lamentable
and unheard OF economic condition. IS
M ri brrf t4u va tad qf,I In,
tensified them, because assuming that it
understands mems needs and desires
better than they DO themselves. It at
tempts TO manage for them and restraints
their natural liberty In many Essential
respects. Thus government does not pre-
sumo 70 manage any Of the simpler bus
inesses because II recognizes its inca
pacity. but as regards banking currency
and coinage, the most delicate. the most
intricate, the most far-reaching. and
therefore the most easily disarranged Of
all business, its capacity is as
sumed TO be pre-eminent and # there
fore regulates to minutest particular
what men must and must not do Or
rather Il attempts-wtth what success Is
seen in the complete breakdown OF the
National Bank System. Now whence
governments capacity? To inquire should
seem 10 decide against governmental man
agement. but it does not. for the people
clamor more eagerly than ever that Con-
gress continue the broad way that ineW-
tably leads and has led. 10 hnalcial dis
aster SO long as the people insist that
government understands their business
better than they DO themselves so long
viii Congress attempt to manage
and so long can there be no
permanent settlement, though there
will nrobablv be rallies of finan-
ciai and currency matters.
The remedy. however, will be found in
time. but II will be radical nothing less
th1n turning our backs squarely on the
past and repeating every law affecting
monetary business differently from all
other business. Banking, &c. cannot be
taken out OF It's natural relation Of every
day business and exalted into a region OF
sentiment and philanthropy. To talk OF
the duty Of government 10 ENSURE n
sound currency" &c Is folly n Il never
a duty 10 do the impossible and # Is
impossible for government 10 do this. The
duty OF government is 10 ignore banking
&c, and leave them 10 their natural
course People understand their monetary
wants and how 20 supply them better
than government possibly can, and 20 at
tempt 10 supply them by restraint and
cOnstraint is 20 defeat our object and
bring disaster I'm addition Nature gangs
her ain gait" regardless Of individual or
government. but she exacts heavy penal
ties Of all meddlers
To besiege Congress for relief on lines OF
governmental control is vain. Congress can
permanently relieve only by undolng'
and relief viii be proportional 70 the UNI
doing. Therefore repeal the sherman law.
Vastly more repeal. however than this
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