Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-06-16

Whilst the Virginia Democrats are ahen-
in- themselves with BuroED. OFKREAIL,
and 1YiER. and me of them are show
arg too uueh personal feeling-that IS,
too much for the good az tho Democratic
partv-tae Democrats IN some other States
aye turning thoir attention g. the financial
condition Of tine country and trying -
dcy.-, . currency measure which Will be
considered satisfactory by the President
AS Vol - by those Democrats who DO rot
concur iu h.s huancia. views. OF course
II Will he impossible 10 enact into law
my scheme ot which hc shall not approve.
a. course. also. It will be impossible to
enact into laW q currency bill 10 which
elNty rlemhcrs 81 Congress ont OF ninety
Gave alrra ly expressed openly their hos
t.ty. Bat. %, we have sad, financial ex-
rerfsiu other States art studying the cur
leur. problem and NAV find by tho time
Congress shall meet scheme winch will
c.nuaul Tie approval Of both the Presi-
don't ana Congress.
al. HoMCr WHITE has proposed "a
bgrkn. system whose principal features
4.o lilo those Of tho system proposed sevo-
sAI years arl by Mr. FLANNAGAN of New
York r.ty lwho Us a NirGinian. by the wav).
H. NWrs proposes. frat OF al, and most
important of all. that the United States
Government shall ho responsible for tho
circulating notes OF the new banks. and
salil retain as now first hen on the
assets oi failed bank and on the Liability Of
tlc shareholders. He also propcses that
the present tax "a hauk-notos shall COR
sn.ut. safety fund 90 bee lodged IN the
Iutai States Treasury. the amount thus
L be- lodged 90 be computed by sctu-
-urI.s. taking the uatioual-bank mortality
81 tine last TWENTY-FIVE years ss q bhsis.
IN, rest ~ this tax, # any. shall GO into
tAe national Treasury.
Mr. WHITE SAYS e his scheme:
"lrm assuming. ~ course. thar az the PROV
. no oi tu. esisuug law. except bond securi,y,
arc retained euI cui1-cei. $50 that tue ratio ~
llrkw.rt.r;y shall not increase The report
et t. D0nrt1'l"~of Currency for 1891 shows
that thor. have boon lG4 neiional-baue failures
e.a.c ,le s5-ion FIRST wont into operation. Tn"
r.t1lam.ult 81 Circulating notes of these banks
outstanding no ihr time ~ the failure wa SIC
.U.Irt 10 w1llI tako uo very long time 70
c,Itt.ttais whole rIn out OF the tax on nation
S-utuk NOTES. bYf. of course only small part
of this would bo wanted 80 any one timo. This
SIG.u1u.OG0 ut fa,i.d-oank nOtos WIS all that
t,ow mrlitie Of timo brought in from April =,
1sf1, o. October ~. IN9t-tweuiy-sir nui a
hsf years. Probably p safety tuni. beginning
with $5.uDO,O0o aud repienishci from time -
ZINE out ~ the proceeds OF tho tax, would b.
ample. Bat suppose 1t were Mt. We would
ttill have nrst lien ON tho assets. The assets
- those lGi f,lol banks realzoi Sii 600, 56l.
- nrarly three limos tho amount % their circu-
lst.ng notes. thuk It would bo entirely safo
.fr the government to continue iis respOus-
ility for the notes on these conditions Wo
must bear IN mind that almost an the banks are
sound ana honestly managed, the proportion Of
bal ones 70 good onos being a. IC4 to 3,G77-or
less than per cent
Mr.. WHITE has no sympathy with any
advocate of wildcat banking. Under the
operation of the law which he proposes,
the currency would BE- a national one and
the notc-holders would be rs thoroughly
protected as they are now.
Here, then. IS New York proposition to
comprom.se on tho hanking-system of the
future. In fact Mr.. WHIE's scheme Is Sc
uuobjcctionablo and promises TO provide
such thorough protection 10 the holders
Of the circulating notes TO be issued un-
der 1t that tho wildcat bankers will pro-
badly object to it that these notes are toe
goo1-so good that they would circulate
freely III the money centres and be accept
able TO experts IN finance. Mr.. WINES
scheme would be partial divorce of tn,
government from tho banksI and would
therefore be more acceptable than the
present national banking law 70 those ex.
ccllcnt gentlemen of the old school who
still teach and preach the doctrines which
the Democrats taught and preached in
General JACEhnN's daY.