The times. [volume] (Richmond, Va.) 1890-1903, 1894-10-26

as under a State charter. Our only Cd
| lection to that feature Of the law Wouiu
| be theoretical, as the National Govern
ment should have nothing at all 10 90
with the currency. Still, as the great
thing. the deposit OF bonds. would be
| abandoned. we would put up with the
necessity OF taking our charters from
a national source In consideration OF M
| er;y 10 issue notes on the credit OF 'he
bank alone. The tax would be uea"
! letter. since banks operating under ia
t!onal law would be able to put out theii
notes and without depositing bondS' an
the only difference between that System
and what we desire would be the
that the banks would operate
national instead Of State charter 49,
II everything else which we "''..,..
conceded. that difference "ou'u 20
TO very little. We repeat the"
consider an immense step for"ard ~ %
been made when the Bankers 'o'''
agreed IN n repeal Of the provision ..
Tho i,,, which requires a deposit %
Monde "a secure circulation Ihi7 Pu"
tho r,os, powcrful influence IN this 'ou"-
ivy O., the back Of the movement io'
repcal and we look on u now
o,es,ion Of time only when we sha" see
that result attained.
I, rejoicing thus over the adhesion OIL
r,aso bankers 70 the proposition that the
1,,,s,, Of bonds shall be abandoned we
r. very far. however, from agreeing 70
much that their plan contained we
have already pointed out how II abstracts
from their capital a very large per c',',-
,c. Of Il which is TO be locked up WIN
the Treasurer Of the United states III
,,...hi,,,,,, az a redemption and guar
autee fund. &,
rho Nov, York Journal OF Commerce III
discussing this feature, thinks II pau il
making tho United states Treasury at
Washington the redemption agency ior
the whole country. Il thinks me VIZ
country should be divided on mo 80
districts and Il designated BANK H. can
district be made the redemption as'",'
for that district while all the ba"N7 81
tina. district should be required 10 keep
certain fund with the agent bank as l'S
redemption fund. ,,,e
We are totally opposed 10 the who'e
idea-to that o. the Journal oil ''I.ii'''''
as much as to that OF the I'd'ui''''
bankers. The bank that issues notes -
irs own proper redemption agency Us
notes should be payable on demand AZ
ito coupt.r In gold coin, ana 1t shouIu
understand always that when IL puts l''
notes out st does 50 with IN" cei'"i",'
of bankruptcy and ruin for II u II id''S
to give gold coin for its notes whenever
that coin is demanded at It's cou"''i'
LET the banks themselves provide th-r
redemption agencies. All the provisions
OF statute law requiring banks 70 nave
in their vaults a certain amount OF hoHe'
AZ q reserve fund, and all requiring theIh
IN doposit somewhere else a certain part
Of their capitaI to be held as a redemp-
ton fund, are so many arbitrary anu
artificial restraints upon the liberty OF
tho banker to make the best possible
uge Of his resources. We repeat all tn'S
can be done by a voluntary ASSOCIATION
Of hanks. The true check upon his I'M
rroucr use Of those resources Is not
hard and fast law that takes no account
Of varying emergencies, but the prudence
and sagacitv and intelligence Of the
banker.
Emergencies arise in the experience OF
every banker when he needs control OF
every dollar that is his. II, when the cmor-
C.ncics arise, he had at his command
that part Of his fund that the law requires
him TO have deposited somewhere
else, he would be able TO deal
with the situation without diff
Guilty Deprived Of this part Of his
fund he may be driven to the wall. 1t IS
ike the case Of a general who has plenty
Of troops in his army, but not enough
at the particular point assaulted to re-
sist the attack. His great army goes for
nothing If his line is broken at that
point
All of these artificial restraints on
banking are so many needless embar-
easements Of a free and proper use OF
the bankers resources.