The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-19

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| contracted while your business calls 10
continual expansion. and, even II ther'
| mere no Sherman act and Free Coinag
act IA disturb your finances. the yer!
cast-tron and non-eIastic nature or you
| banking system would periodically create
a scarcity OF money whenever the de
mands Of the West or OF the oou.'
called for currency to handle thelr cfops
am aware that in the memory OF TN
neonle OF the United States painful recoi
iec,ions OF the insecure character or th'
old State bank currency still fingers Bu
| the example OF Canada, a much poorer
| country should be sufficient TO satist,
| your people that a more elastic note CIT
| culation can, by prudent safeguards, D'
| made perfectly secure.
Canada, under her admirable banking
| system. experiences no extra pressure
| when currency is required TO handle hel
| crops. The bank circulation expands, anc
| there is no strain upon the resources OF
| the banks to buy bonds on which to base
the circulation. In fact. the greater the
| demand for currency the easier the money
i market, and as the circulation returns lis
redemption is met by the realization OF
the products for which 1t was adj
| vanced.
l state, without fear of contradiction by
any experienced Canadian banker. that IL
Canada to-day were placed under the ma
tional bank act Of the United States her
financial condition would be worse than
that OF the United States, although she
has no silver question TO disturb her
finances.
without further introduction I would
suggest as measure OF immediate re-
lief that Congress pass an amendment to
It's bank acts even before coming to a de-
81 ell Ill,
following should be the leading features:
All chartered banks in the United States
whose capital and surplus amount to-
gether to 100000 and upward shall be
declared TO be banks OF issue and be au-
tnorlzed 10 issue circulating notes of lie
denominations Of s.. so, $50. $50 and 800
to the extent Of half their capital and
surplus. such issues TO be first lien upon
the assets Of the bank In case of its sus-
pension. the Issue TO be free from any
Federal or State tax, but to be liable 10
an assessment OF not more than ! nor
cent. per annum should such be reouirad
TO redeem the notes Of suspended hank
Banks OF issue to be obliged to keen
one-half their cash reserves I'm Treasury
notes OF the United States-that IL IN cav
the treasury note reserves shall always
De equal TO the gold and silver reserves Of
snch banks Of issue. This latter obIira-
eion' "hlch exists in Canada in a modi-
neu lorH' would add largely to the gold
reserves OF the United States Treasnr,,
without In any way impairiny the strengtb
OF the banks Of issue
A third provision should authorize hanrs
OF issue 10 establish branches I'm vario,,s
PARIS Oh the country If they deemed .,
auFIsioie so TO do, limiting the number NJ
W a.ones 10 one for each hundred tbou-
saia collars of capital and surnIus
careful revision OF the Car.s,o.
,.'a.m n dct is made every ten years. and
"hiie amendments are In order a, 90.
sestioh OF Parliament, no fmoortont
ehahse In the law is favored. excent AZ
the decenniai revision. The Get which
1 suggest might be for n shorter neriod
out should be Of sufficiently long duration
TO warrant the banks in making the
char ge. INC
The immediate adoption Of sucb .
measure would. in my judgment. ..enove
within fwenty-four hours the present
strirg' hcy In your money market and
the difficulty Of obtaining currency as
eIectuaIly as the suspension of the Eng.
siish Bank act Inning the issues of
the Bank OF England mas on more than
one occasion allayed panics in the Lon
don money market
While this would be a measure cf I'm,
mediate relief, il is not on this ground
alone that / recommended Its abortion.
The want of elasticity in your present
system causes dear money, when cheap
money TO handle the crops is more than
ever required. The adoption Of this policy
would not necessarily involve the repeal
Of the National Bank act nor indeed.
any interference with It whatever. but
would no doubt. as was the case In
Canada, lead 10 the gradual reduction
OF the issues under that act, while have
no doubt that any of the smaller national
banks would in time be absorbed as
branches Of the banks Of issue, thus
strengthening the whole banking system
Of the United States.
Twenty years ago some OF the most
eminent hnanciers Of Canada, including
the late Sir Francis Hincks. favored the
Of banks with small capt.
tai, but that gentleman later in life
admitted publicly. and to myself person
ally, that his opinion on this point had
entirely changed and by the Canadian
Bank act OF 1890 no bank can 20 into
operation without a subscribed capital
of $4,000 and bona-fide paid-up cap
ital. deposited with the Government, Of
$3.50, 0O0 When the bank has appointed it's
directors and Is prepared 10 commence
operations this capital is handed over
to it's management.
I need scarcely add that the adoption
OF an act such as ] suggest would leave
Congress in a position 10 discuss the
silver question more leisurely and dis
than can well be done under
the pressure that exists.
/ have the honor to remain, Mr. Presl-
dent and gentlemen.
Your most obedlent servant,
w. w. WEIR.
-Nnur Xorlr frirnns