Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-09-10
SUNDAY. SEPTEMBER 10, 1893.
what Cleveland VIII Agree To.

persops advocate free love. But l.. II.
b. would deem it great wrong done
him if anybody should accuse him OF
being in favor Of allowing all men and
women to manage their own matnmo-
NAL affairs b suit themselves. AS fool
ish lovers must he restrained by law,
not for their own benefit particularly,
but for the sake OF society or the COM
munity at large, SO foolish financiers
must be restrained by law from flooding
the land with shin-plasters. The "ele-
ments of danger, which l.. II. b. says
"all banking possesses" have in a meas
IRE been eliminated from the present
national banking system, and the indica'
tions are that We shall not have to return
70 that system of banking, which might
be called n state of confusion worse
confounded' in the whole financial
world.
How lcose L. II. b. s notions are on the
suhjectof banking, may be inferred. from
the fact that in reply to our statement
that the old State banks issued three
dollars Of circulating notes for every dol
lar of specie in their vaults, he replies
tbatthe United States Government has
less than one hundred millions Of dol
lars Of gold with which TO redeem seve-
raj hundred millions of greenbacks. But
this is a most unfortunate illustration or
argument: for whereas the old State
banks not only issued notes based upon
their credit, such as it was, and except
discounted paper, had no assets other
than what little specie they chose to
keep on hand, the United States Gov
eminent has in it's vaults hundred
millions of dollars in gold and hun
dreds of millions of dollars worth OF
silver, and more and better, and more
significant, and full, round, and com
plete answer to l.. II. BIS suggestion,
has the power to levy custom-duties,
excise taxes. income taxes, and taxes
upon all the lands, tenements and hered-
itaments III the whole United States, or,
to he brief, has power to tax all the real
and personal property of every man in
order to enable it to redeem its circua-
ting notes.
Under all banking systems, the stock
holders were not liable for any misman-
agement of a bank, except that their
stock was, of course. liab,e for the debts
of the bank. Under the present bank
ing system the stockholders are liable
not only TO lose their stock but as much
more as their stock amounts to. Instead
OF basing their circulation on their own
debts, the present national banks base
their circulation upon United States
bonds as good as gold, kept, not in their
own vaults, but deposited at Washing
ton to BE- sold by the government
whenever it may become necessary and
proper so to dispose OF them. Under
the present system the key TO the stable
is kept by Uncle Sam. Under the old
system the stable was locked and the
key put into the possession of the
horse-thief, or, if that be too much to
say, the banks were law unto them
selves. The Populists and others have
had much TO say Of what they con-
slider the injustice OF allowing the banks
to draw interest upon the bonds deposit
Al - &Anf
and at the same time upon the circula-
ting notes themselves Qent out, OF
course). But what will the Populists,
and the Peoples party, and the Green
hackers, and all the rest Of the ''calan-
ity-howlers," say to the PROPOSE
ton to allow the banks to issue
currency based upon what they
owe? Who wants currency of that sort?
And yet this is what the advocates of a
return TO the ante-bellum system of
banking propose to do. A bank having
a capital of 100000 is chartered. 1t is
privileged to issue three dollars ofpaper
for every dollar of specie it has in its
vaults. The entire capital stock is sub
scribed andpaid up. 1t has 900, 900 in
its vaults. 1t lays ont that sum for
specie. 1t then issues $500, 900 of circu-
lating notes, based upon 100000 of
capital. And L. II. b. thinks this mis-
cradle burlesque on banking better
than government control Is it any
wonder that depositors learned to hasten
to withdraw their deposits at the first
note Of alarm as TO the condition Of the
banks of that day ? Is it any wonder
that depositors still have q wholesome
dread of the banks? No; but surely it
is wonderful and unaccountable that
anybody, knowing the history of
the panics which occurred under the
old system Of banking, should be will
ing 10 return 10 that system. AS we'll
abolish railroad cars and return to the
use OF ox-carts.
l.. II. B. says Ia effect that national
banks have violated their charters sin
every respect'--that is, as to the re-
serves, and In issuing clearing. house
certihcates. % wehas refusing to cash
checks. &c. &c. But these evils will
soon be eorrecfed. They all grow out
OF the fact that our banking system
makes no provision for securing depasi-
tors This condition Of things must
not DO permisted 10 continue. Let
depositors be secured as note.holders
arc already secured, and ell will be plain
sailing hereafter IN the seas Of finance
and commerce even international
hnAnce and commerce.
G6vesnpsnt 70 Ignorant and inex-
pszisncsd. : rays I. H b; but hs i