The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-12
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AN OBJECT IESoON.

The city Of Richmond has five state
hanks of discount and deposit. having
Joint capital OF 81, $4,000. These are as
sound institutions as any In America
and they are msraged by men who are
as prudent and sagacious business men
as can be found. These men take no uh-
due risks now in the management of ther
banks. and the consequence Is the pusl-
ness OF their banks prospers The reason
why they take no undue risks is that
their banks depend for existence upon
their credit. Whilst their credit is OF the
best they prosper If there is brea'h
of suspicion cast upon their credit they
languish and hnaHy fail unless that credit
is thoroughly restored Is it probable that
these prudent business men, now enjoy
ing such advantages from the highest
credit aud knowing so well the advan-
tages Of credit and the destruction In
yolved in the loss Of credit. would change
their whole nature and become reckless
and improvident business men If the laws
should allow them TO issue notes? The
suggestion carries on its face demons'ra-
ton of its own absurdity. They wouio
be the same men If they were allowed
TO issue notes that they now are anu
they would manage their banks with tue
same prudence and discretion then that
they use now.
We have discussed this subject lately
with one of the most sagacious managers
90 ono of these Richmond State banks
and on our inquiring what he would 40
II the law allowed his bank TO issue notes.
he said he would issue notes 10 the eX-
tent of rs or so per cent OF MS caPi'di'
We asked him II he felt sure he could
maintain these and be always prepared
10 redeem them in legal tender money
and he replied that he had no more DOUBT
about Il than he had about his ability
10 redeem any of his other obligations
and that he would not. of course. think
az issuing them IL he did not know he
could maintain them. Now, let us think
for n moment what 1t would be worth
10 Richmond If her State banks were
allowed to issue notes. If each one or
them did IL as the one we have spoken
OF suggested tand all would), the national
banks here would be compelled to sur
render their national charters and be-
come state banks also, or the State banks
would leave them far behind. Richmond
has four national banks, with a JOINT
capital of 81 10000 Her nine State ana
national banks have, therefore, Jointly a
fund Of s2.S50.0O0 10 lend out. But II all
of them issued notes at the rate OF 10
per cent. OF their capital this fund would
be increased by $2,l37. 800. Instead then
of our banks having $2.S50,OOO 10 lend our
community, they would have &,9S1 800 10
lend to it. What difference this would
make In Riehmonds ability TO do bust
nessi Its influence would be like magic
But not only so. with all the shackies
stricken from banking, as many more
banks would at once start business as
our requirements called for. and. instead
of Richmond being pinched for money as
she too often is. every business here
would be able always 10 get all the money
that 1t needed.
We are denied this inestimable boon
because that kind of statesmen who
Shrek about wild cat banks say that
some Virginian In New York with moth
Ing but Richmonds bank notes In his
pocket would have TO stand shavel
What proportion OF Virginians travel out
SIDE OF Virginia. and how much state
money would these few have in their
pockets? About one-huldredth Of one per
cent. OF the people of Virginia travel out
OF the State. and these would have with
them about one-milionth Of one per cent
OF the notes the banks would issue. They
would have coin or national notes In their
pockets or practically no money at all,
depending on their ability TO check on the
home bank for whatever they needed.
We deliberately starve ourselves, there
fore. with abundance Of food strewn all
around us. We Intentionally perish with
thtrsk when we could drink abpndantIy