The times. [volume] (Richmond, Va.) 1890-1903, 1894-03-21
THE REAL REASON WHY WE WANT
STATE BANKS.

In arguing egaii st a State bank system
yesterday. the Dispatch said: 1.-The foun-
dalton Of the agitation for State banks Of
issue is the assumption that there is
lack Of currency"
This passage shows that the Dispatch
IS as far from understanding this matter
as our Gordonsville correspondent was
from understanding that a deprecated sill
yer dollar and what he called a depre-
ciated bushel of wheat are the same in
principle. The vagary OF the Populist
runs into a demand for more money, and
generally where you find a Populst you
find a man with wheel in his head who
thinks that the Government can create
money out Of oak leaves paper. or moon
shine. They all think value depends upon
circulating media OF exchange, and the
Government is the source whence their
media are to emanate. Some OF the Popu-
lists, however. think that their inherently
valuable created media may issue from
State banks. and these advocate State
banks of issue upon the assumption that
there is a lack of currency"
But the intelligent advocate of State
banks Of issue has no question about a
sufficiency of currency. He looks at the
national banks Of New York and other
money centres bursting with boards Of
money, for which they can find no en-
ployment. and he knows perfectly well
that 1t is not deficiency Of currency that
causes popular distress. lie knows that
IL is something which prevents the peo-
pie from participating in the
customary blessings that flow from
banks and from their lending money to
those who have need for It.
When he looks into the organization Of
the national banks he sees that from their
nature. starting with Government char
ter and based upon national bonds. their
homes are in the commercial centres.
He also knows that ability to borrow at
bank depends upon the bank officers
knowledge of the character and means Of
the proposed borrower. He also knows
that the bank officers In the cities have
almost no personal knowledge of the great
body of the people who dwell in the coun-
try. and that these. therefore. find them
selves cut OFF from all ability to borrow.
The intelligent advocate of State banks
OF issue. therefore. desires them in order
that banks may be established all over
the country where there is business
enough TO Justify them, the managers OF
which will know the people and WILL
therefore. know whom 10 lend TO and
whom to refuse. With these money ex-
changes scattered freely and diffusedy
amongst the people there would be no
occasion for them to be banks Of issue at
all, II the methods OF transacting business
by checks, drafts, and notes were az well
understood In the country as in the cities.
IL they were, a country bank would give
a farmer a credit based upon his property
knowing that that farmer would not call
for money, but would pay his bills by
checks. which would be likewise deposited
and checked upon in turn. But business
II not thus transacted In the country.
Men in. the country want. not bank ac-
counts. but money in pocket. A system OF
State banks scattered all through the
community would educate countrymen up
20 transactng their affairs with checks
- city people do, but 1t will take time to