Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-06-19
rh. Nav banking sx.ssm.

The gradual falling OF OF the redemp-
ton fund suggests the possibility that
the Secretary OF the Treasury may ere
long have to sell more bonds for specie
in order 10 prevent that fund from oems
further diminished by shipments or goih 10
Europe or otherwise. III thus. or by any
other means. the banks could be supphea
with United States bonds upon when 10
issue az much currency as the county
needs, tie present banking system f'ils"'
safely be MISUNDERSTANDING uni"
war with some other country should dream
out. or a weak spot in the system s"o"'A
be touched by the finger OF eNper'e"'
But Il il to be hoped that Mr.. carlisle WIN
,,o, he compelled by stress OF the existing
monetary crisis, nor by any other cause' ~
sell more United States bonds. Upon iheSe
national bonds are based the circuia''"s
notes OF the national banks ana eons
ouently the life OF these banks can last
no longer than the life OF the bonus mag
last. whether this be for one year OF iol
twenty years. Unless It can issue notes.
a national bank Is not profitable
Fortunate for the country IL - ''a'
the wildcat Cox bill has been burie' ~
deep that as the late Asa Hiete sai'' "
wifi never hear the sound OF the resuriec-
ton gun" Now that the seal OF puDi'
condemnation has been set upon that
hill Congress may and must procee" W
devise a banking system suited ~ "'e
conditions Of Isgi rather than to the con-
dl,Ions Of 1874 Whether the exis'lns
banking system Is the best that the "oriu
was ever blessed with or not, II IS Ger
tainIv much better than any other when
nreceded IL In this country. But as 10
machine is stronger than lis "eahea'
srot. so no banking system i perfect. All
such systems must in time develop weak
SPOT. The banking system Of CANADA anu
that Of Scotland have been greatly laun'd
By some Of our financial experts; but we
are not prepared to say that
either would prove itself to be
the banking system which this
country needs. The recent discussions IN
the House OF Representatives Of banks
and banking schemes tend to show that
the statesmen Of the present generation
are as well posted AZ were any Of tn II
predecessors on financial questions.
The advocates OF the COX I'LL in Inc
House OF Representative seem to BE- as
well pleased as its enemies with the iinai
and total defeat Of that bill. We suspect
that a good many Of those advocates
are now seeking in vain to satisfy tnem-
selves that they I'D right when they
voted for it. We look too, for these last
to "oui Herod Herod' in their ef-
forts TO devise scheme which
shall have merit enough To cover as with
a mantle OF charity the great biunder
which they committed when they voted
tor the COX bill.
We have not committed ourselves 10
Mr.. Walkers bill. but We can say that
il will answer just as well as any other
bill the purpose OF beng passed upon
and altered and amended so as to meet
all objections Mr. walker himself says
that recent discussion in the House OF
REPRESENTATIVES and I'm committee has
made the substantial features of the new
system reasonably certain. 1T will be In
the direction Of national currency and ma
tional banking and away from State
banking" 1t will. he adds. undoubtedly
provide for doing away with the various
forms OF currency issued now, and for the
subsiition therefor of a uniform paper
currency issued by the National Govern
mcnt through the banks.
SO all schemes for debasing and dena-
tionalizing the currency may be regarded
as having clearly failed The wonderful
proposition to establish State banks and
let them issue notes which would not cir
culate away from home, has received
its quietus. The "elastcty' which Wild
cat banking promised to secure 10 the
circulating notes OF such banking sys-
TEN has been condemned as an elias
ticity' that was by no means desirable.
Mr.. Walker has not overlooked the de-
posltors. His scheme includes the propo-
sition to provide a government guaranty
for small depostors. This Will not suffice.
Unsecured deposits breed panics. If We
are never to have another panic 1t Will
be because we are not hereafter TO have
unsecured deposits.