The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-11
Iation ard trading nreas extend. and to
meet local expansion and contraction or

,ot,on ard trading nreas extend. and TO
meet local expansion and contraction OF
trade.
The National Banking law was so de-
Stoned. but 81 has served its time. ana
is to-day practically dead. 1t was m
tended 10 supply abundant local currency.
hut its notes row fern only Is per cent.
NJ our currency. IL has Inherent defects
mat should condemn it. and IT har be-
cine so obnoxious TO the Populist and
Alliance element that II has been i'm
rorsible for several years to amend nr
no6Ify II so as TO make 4. mere effective.
T, must go, and the sooner 'he tefter.
what then? Shall eve repeal the tax on
| State bank issues and have forty different
systems OF currency. allowing the States
| that will enact loose and reckless cur
rency laws to flood the conservative
| States with wild-ci. money? I fear our
trcubles would be incr ,ased. Wha' is the
| remedy? 1t is very simple. and would
| prove very effective. II Is the enactment
by Congress OF n general banking law
for the whole country. under which all
banks chartered by the States might
Issue currency free from the 10 per cent.
tax. That currency might be made az
safe as any ever issued by the following
restrictions and limitations;
~ Ddih ~ nav 49, NH1f NfNNfNNN
tual paid up capital.
Bank forbidden to lend money on Its
own stock.
Stockholders responsible for double the
amount OF their stock.
Currency TO be a first lien on all the
assets OF the bank before depositors or
any other creditors.
Bank required 10 keep a redeeming
agency for It's notes at the capital OF the
State.
Notes 10 be secured by deposit with the
State Of such bonds or stocks as the Leg
~islature might by general law require.
having a market value equal to the issue.
Maximum issue OF notes not to exceed
actual paid up capital OF bank.
Some of the foregoing conditions are
in the present banking law.
The present law requires every
n redeeming agency and fund for that
purpose at Washington. That condition
makes every part Of the country tribu-
tary 10 the central Government.
The condition distributing this fund 10
the various State capitals would be used
for purposes Of exchange. and would en-
able the States to avail Of the reserve.
Under such conditions as / have named
any State might be safely trusted to
charter banks without limit. and no man
would ever lose a dollar by the note Of a
broken bank. OF course 4 State charter
could make the note redeemable only in
gold or silver at the counter OF the bank.
or at the redeeming agency. but all law
full money would be taken under the law
of the General Government.
The question IS, Would banks under
such rigid conditions issue currency, and
would such currency expand and contract
to meet the requirements Of local trade?
I have no doubt the banks would take IL
The Virginia banks had SlS,000.000 OF cap
and sl2, 900, 900 Of currency in 1860, and
the notes were as good as gold and ample
for all our local trade, and the rate Of
interest was then always lower in Rich
mond or Petersburg than in New York.
We will see that again when we can
issue currency on some other security
that United States bonds. and redeem
them at our various State capitals. And,
this proposed issue is not a
substitute for the present issue.
The present issue Of greenbacks ana
silver notes and gold notes remains, also
national currency, but the latter Will soon
die out. The greenbacks. &c, VIII re-
main until Congress sees NJ TO call them
in. but that will not he in this generation.
I do not write this letter for publication
but you can make ally use OF II lyon see
fl. or YOU can use any part Of it. l hope
Won NAV see merit enough in 1t 10 advo-
cate II.