The times. [volume] (Richmond, Va.) 1890-1903, 1893-11-05

and property. But we shall never have
complete prosperity until we break the
shackles with which we are now bound,
and allow banks TO be established freely
wherever there is a demand for them.
Leaving out Of view the question OF
paternal government and socialism which
are iuseparably invol yed in national
banks. there is no sort Of an objection to
them as financial Institutions alone. All
/ that can be said against them Is that
! they fail 70 afford the people sufficient
Accommodations. But when this is said a
powerful and overwhelming argument
/ against allowing them the monopoly Of
/ banking is made. Their failure to sup
I ply sufficient banking facilities is inherent
/ in their natures. Starting with govern
ment bonds they make their homes In
! the commercial centres. Banks lend money
on knowledge OF the borrower. The
manager OF the National bank knows
some Of the individuals OF his city, but
he does not know the people in the coun-
try. lie lends, therefore. to a very limited
portion Of the population; and very
large part Of the population, because it
IS unknown TO the managers Of the Ma
Ional banks. are unable to get bank ac-
commodations. although they have both
the character and credit that entities
them to them. What the business Of the
country wants, then. is perfect freedom
IN banking that bank may be establish
ed wherever there is business enough to
warrant people in starting It, so that
every man who has the character and
pr operty that commands credit may be
able to secure bank accommodations.
We do not regard the right to issue
promissory notes as at all, theoretically,
the sine qua non OF the State banks.
Perhaps It is so at the present time. and
may remain so until society is much bet
ter organized than even yet. But the
argument as already made for the sys-
TEN OF checks and notes being the true
paper currency applies theoretically just
as well to State bank In the country
as to a National bank in the city. The
difficulty in making it so practically
lies in the constitution Of the country
mans mind. He has been used to trans
acting his affairs with actual cash, and
he has not yet arrived at that state Of
progress which conducts business with /
out money, but upon transfers OF credits. /.
The State bank. therefore. finds an issue /
Of notes absolutely necessary to its sue .
cess at present, because those with whom
its chief transactions take place do their
business principally with money, and
they must, consequently, provide an album
dance of that or substitutes for II, which
substitutes are their own notes. Issuing
two and a half, or three OF these to
one Of specie in their vaults, as they can
DO with perfect safety, they accordingly /
find the amiable weakness of their
customers a sure source Of great
profit 10 themselves. We want,
however to make this remark in connec-
ton with the popular error that great
quantities Of money are necessary to
the prosperity of people. In an ideal
state Of society. the only money that
would be needed would be that which
men carry in their pockets for the i'm
mediate transaction Of petty cash ar
fairs, with a small reserve for emergen-
cies. All other transactions would be
effected through credits at banks on
which checks were drawn, to be deposit
ed in bank by the person receiving the
check. and to become thereby new
credit upon which that person would
draw checks. Need for actual money is
only in proportion to the backwardness
Of society.
We conclude. therefore, that what is
wanted is. first, legislation that makes
the standard Of value certain, and there
by secures perfect confidence in it; and
second, absolute freedom in establish
ment Of banks Of issue so that all per-
sons possessed Of character and property
that entities them 10 credit at banb may
receive there the credits they require TO
draw checks upon, by reason Of being
known to the managers Of the
banks. God be praised, we have now
secured the first. Let all OF us henceforth
turn our attention to securing the second.