The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-12

capital invested in II, ana whose
ft is 20 make the best and wisest use VI
thnIr own ability In the conduct OF thelr
business. This the national panKs are
Unable 10 do. as they are ued Gown ny
statutory provisions as 10 the use y,
,botr %canital and subjected 10 the control
-, tnsocrtora Amounted not by those who
ana the capital. but by politicians, who
have nothing az stake but their political
renutations. That such n system Is n
failure IL evidenced every day. Those
who need money cannot get II. because
they are unable TO provide the exact KIND
Of security which the law allows, whist
those who ought not 10 have money IN
many cases get IT because they are
shreNd enough 10 know how 10 drive a
coach and six through the statute. Then'
again. its failure is shown by the con-
slant. yea. daily. reports Of the failures
Of these banks through the defaults or
their onicers-failures which could not
occur II .he system OF Government IN
spection was worth anything at all. NO
such system OF management or inspec-
ton can, I'm my opinion, ever be worth
ANYTHING. unless there be combined with
n the application Of the Chinese banking
law, which DEGREES that on failure OF any
bank the heads Of the directors and IN
tufFfGtD Sltlll DC 'iAtDIfI va ~ '
and be added 10 the assets. This mas
been effective In china 10 prevent ran
ufes. and 10 doubt would 50 far 10 enect
the same end here. As. however, 1t Is
not at all likely that the country is pre-
pared TO enact any such law, the ques-
lion arises. How can the national Ddhh
system be so amended IS 10 meet the
needs Of the country? II would seem 10
me that II we would TAKE a lesson IRON
England and France on this subject that
there need be no difficulty in the matter.
I'm both these countries there is no ma
tional bank ard no treasury department
Issuing money Of any kind. The Bank
Of England and the Bank Of France have
spocial charters from the governments,
under the terms Of which for certain con
sideratiOns they manage the national
banking. and have the sole right or lssu-
ing notes In the respective countries.
The management OF these two great In
stitutions, however. is entirely In the
hands Of those who are stockholders IN
them, who alone elect the directors and
look after their own interests. There
are no government inspectors Of banks In
either country. All the other banks in
England certainly. and In France so far
as 1 know. are simply private corporations
engaged in business. which they manage
themselves. and without any power 10
issue notes or currency OF any KIND eX-
cept gold and silver, which they obtain
i'm England from the Bank OF England
and in France from the Bank OF France,
TO each Of which institutions this cur
rency is supplied from the national mints
as required. The result OF this system
has been to cover the whole Of England.
Scotland. ireland and France with banks
i'm every place where any business is 10
~. d. IL I~rCfap1 atppa the ngih-nn
capital and reserves Of these banks
amount to over $3.50. 00O,0 900. These banks
conduct their business on such principles
as they themselves approve. They lend
on any Kind OF security the directors
think good enough. and are controlled
aud inspected by no one except those
who find the capital which they use In
their business. What is there to pre-
vent such a system being a success
here? The existence Of the State Bank
in this city. which Is an eminently sue
cessful and popular institution. and
which is founded and controlled upon
the same principles as the English and
Scotch banks. is a standing proof That
the system can be successfully worked
here. Divorce the National Government
from the banking business and put II
into the hands of those who find the CAPT
tai 10 carry II on, and give them freedom
10 manage the business in as fun and
complete a manner as possible. Let the
Treasury Department be simply an office
for the management and direction of
the financial policy Of the Government
that is, for the incidence Of taxation and
disbursement Of the costs OF Govern
ment. when are questions properly under
the control Of politicians as matters OF
policy and not of business. and let an
Independent financial institution manag
the financial business of the nation. Such
a system as this. with the wide extern
sion OF banking facilities which would
undoubtedly follow from a free ststem,
would automatically regulate the cur
rency required to do the business Of the
country, and we might then get rid OF all
our varying forms Of money, now so
p~uzzling TO other nations, and fall into
line with the European nations on a
sound gold basis, with silver simply used
as a subsidiary and token coinage. and
bought only as the needs Of small cur
rency demanded. IL is not the lack Of
currency, but Of confidence in that cur
rency, that is causing the present furry.
Let all the world know that we are
trading solely on a gold basis. and that
the banking business is managed by bank
ers, without Government Intervention,
and there will be no lack Of currency I'm
the country. There are millions In Eu-
rope waiting for investment, which would
be sent here 10 develop our resources
were the owners certain that IL would be
repaid them in gold, but which can never
be gotten OH other terms. Why hesitate
TO change the existing system Of cur
rency and finance. which has been tried
and found wanting? The more the Gov
eminent has tried to bolster Il up by
meddling with banking and buying use
less silver. the worse the situation has
become. 1t has enured only 10 the profit
OF a few millionaires and silver-mine
owners. Let us have a change. and get
down TO such "A system as the French and
English one, under the working OF which
every man gets his wages in gold If I'm
excess OF $3.50. and where in every small
village you can in an hours time collect
more gold coins than you could in a
week I'm any county in this country, out
side those containing large cities. There
is gold enough in the world TO make this
metal equally plentiful here. All that is
needed is wise legislation to induce Its
flow in this direction. J. f. JACKSON.