The herald., 1893-12-17
EMPIRICAL FINANcIAL SUGGESTIONS.

The proposition OF overshadowing in
terest in the United States just now is
how best to provide the people with
enough money to do their business,
easily and conveniently, and at as little
cost as possible to those who are COM
pelled to use other money than their
own. Amy one who writes anything in
telligent on this matter will be sure to
find readers. Mr.. Thomas G.. Shear
man has contributed to the last number
of the Forum an article under the head
ng 1--WE need not more money but
better system of Exchange" He ad-
mits that the demand for more accom-
modations to the farmer is a just one,
and that this class has to pay extrava-
gantly for accommodations actually
needed in conducting their business,
frequently three or four times the
amount which should be asked or
which should be permitted under
proper system. The farmer or the
planter is at the mercy of the country
etorekeeper. The smallest average rate
of interest suggested as being paid by
these classes, by any writer on such
matters, is fifteen per cent, and this is
at time when money in the large CEN
tors only commands from three to four
per cent, and sometimes much less.
These views are not new, but his pro-
posed remedy certainly is to most people
in the United States. 1t is no less than
allowing the great banks, especially the
national banks, to establish branch
banks at convenient points. Under
such plan there would be little use for
money and business would be largely
transacted by checks. The farmer,
planter and small shopkeeper would find
checks for small amounts just as handy
as small notes or the coin. Mr.. Shear
man makes the rather astonishing state
ment that in all Scotland there are only
twelve banks, the small places being
furnished with branches OF the great in
stitutions of Glasgow and Edinburg.
He aids that there is never any scarcity
of money in Scotland, and that there
have only bsen two or three instances of
failures in that country during many
yeras psst, and that in those cases the
depositors did not lose nything, per-
feet system oil checks having been pro-
vided for their protection through the
Scottish laws.
One of the difficulties that Mr.. Shear
mans scheme would encounter is the
fact that we have in the United STATES
complicated and very powerful existing
system of banks which would have
much to say as to the carrying out OF
such programme. Another would be
the overlapping state lines, which is
recognized by Mr.. .Shearman himself. II Q
proposes to remove this by making the
United States government enact general
laws, operative in all the states.
1t would be quite difficult to get the
American people to enact any such
laws. The effort would be met by the
unanswerable argument that the estab-
lishment of national postal savings
banks would exactly meet the situation.
There is no credit better than that of the
United States either at home or abroad.
Such institutions would enjoy the abso-
lutte confidence OF the people. There
nsver could under any circumstances be
run on such bank. Instead OF the
twelve Scotch banks with branches we
should have one great banker-our
Uncle Samuel-whoss solvency there
would be none to dispute. Their man
agement would, of course, be placed in
responsible hands and would quickly
rout the bugaboo of hard times.
For our part we are disposed to en-
courage almost any plan that will save
the farmer, planter and smell trader
from the merciless exactions to which
they are subjected, particularly in the
south and northwest. The great COM
mercial banks OF the country would not
be affected iniuriously by either Mr..
Shearman's system of branches of exist
ing banks or the enactment of q law
creating United States postal banks,
while the people would be so benefited
that the prosperity OF every one would
be increased. The rich would be made
richer and the poor less poor. But we
are afraid it is all Utopia for years to
come. The rich, who seem to hold
about the same control over congress
under one party as under another, have
too good thing under our present
methods not to band together to defeat
any scheme that would tend to the
amelioration OF the masses.
The Tall Sycamore OF the Wabash has
at length come out with his empirical
silver bill. There is nothing new in it,
and it pleases neithsr the friends nor
the enemies OF silver. No one acquaint-
ed with the Hoosier statesman had
much expectation that hia bantling
would amount to anything. 1t is the
old BlandAllison bill over again, with
he difference that coming the seignor-
age on silver in the treasury would pre-.
vent the silver miners from getting any
relief for something over two years.
The VOORHEES, measure provides for the
coinage OF two millions OF dollars a
month. There are fifty-four millions of
dollars OF this seignorage, go that if it
were coined at that rate it would take
the mints just twenty-seven months to
handle it. During tina. long period the
silver miner would not be aided by the