Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-09-26
TUESDAY. SEPTEMBER 26, 1893.
schemes to Protect Deposicors.

SCHGmeH 10 1IOltCl lytlJCS4ScAo'
II there had been In force six months
ago a law providing for the protection OF
aepositofs In national banks there would
have been no such panic as the one which
stiu sits upon the breast Of the CONNER
,ial world. for there would have been no
withdrawal Of deposits and consequently
no calling IN OF loans by the banks. and
consequently again. az we have SAID no
panic
several bills looking 10 the interests OF
icuosit1rs have already been introduced
into Congress. one was introduced into
he House Of Representatives by Mr..
BRYAN. Of Nebraska. He proposes TO levy
a tax Of 4, OF / per cent. per annum
upon the average amount OF deposits
reld 10y "a bank In its custody during the
last quarter OF the fiscal year. From this
fund are 10 De paid the dcpositors In
failed national banks. To prevent con
traction Of the currency as a result or
the accumulation Of a redemption fund'
which would otherwise De lying IDLE In
Washington grccnbacks are To be issued
10 supply the place OF the currency thus
Withdrawn from circulation. Some such
law ns the one proposed by Mr.. Bryan
will solve the problem Of putting an end
+, uanicS In the Committee on Banking
and Currency in the House OF Repre-
seutativcs ON Saturday last. the commit
iec authorized Mr. Cox, OF Tennessee. 10
report fayorahly TO the House his bill to
promote the safety Of the funds ana de-
uosits in national banks. We do not
know what are the peculiar features Of
Mr.. Cox's bin. bat the main object 1t will
sock &C. accomplish will be the putting OF
deIusitors upon the same high ground OF
safety now occupied 10y note-holders, IN
Guiding amongst dcpositors all persons
who for any purpose entrust their funds
70 tn. banks Let such hin become
law. ana Congress may quiet all rs fears
as 10 any future panic. AS II Is impossible
now 70 get up a panic amongst note
holders. and nobody has ever heard of
even one who went 10 the bank or else
where 70 ascertain whether the notes he
held were good or not so when once a
law securing depositors shall have gone
iuto effect. and the people shah have be-
come familiar with its operation, there
will not be one depositor found running
10 bank % ascertain whether his de
posts are safe or not.
A leading commercial Journal in New
York talks much about an elastic cur
rcncy. and about the failure Of the ma
tlonaI banks to supply the currency
which the country needed and strove in
vain 10 get several weeks ago. But the
same Journal gives itself away when II
SAYS that this scarcity of currency WAS
owing TO a boarding" of currency. Yes,
that was the cause Of all the trouble
And all that Congress need do to prevent
and forestal any boarding of currency
hereafter Is to take away the foundation
lrpon which panics rest-namely. the ap-
prehenaions OF depositors that the-banks
will fail TO return them their money
when they need it-that is to say VIII
fail to return 1t upon demand. Here Is
the one weak place In the MISUNDERSTANDING
law. This weak place strengthened the
system will commend itself TO universal
favor.
one of the schemes for making the
currency elastic - the proposition 10
allow all the States TO issue currency
which Will not circulate In the commercial
centres. but will find Its habitat In the
mountains and in the coves, in the caves
and In all other rural districts. But this
scheme will die aborning." The Secre-
tary OF the Treasury and the President
may possibly consent TO the abolition OF
the 10 per cent tax upon the circulating
notes OF State banks-consent by way OF
making n concession TO the rag-baby
advocates-but they will never consent to
be party TO any scheme of wildcat
banking.