The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-19
THE NARROW VIEW OF A PHILAN-
THROPIST.


lanthropist of Baltimore. was in Wash
ington hast week. by invitation of the
Banking and Currency Committee of the
House of Representatives. TO give ii his
views on the best plan for reforming our
currency. Discussing the subject. he
said:
The House Committee on Banking and
Currency sent word 10 me that they would
be glad to hear from me something about
the operations OF State banks. / re-
member those times well. and hope we
viii never return TO a state banking sys-
ten. We would have money changers
on every State border in that event, and
the notes of every bank would be. just
as they were in the old days, subject to
a discount Of from ! to 10 per cent l
good one, and nope to see il adopted at
this session of Congress"
Mr.. Pratt is an enormously wealthy
man. and his public charities prove him
TO be one of the most benevolent men
that ever lived. 1t is not possible, there
fore. TO set his views down 10 any selfish
inspiration But Mr.. Pratts wealth, age
and surroundings have severed him from
all opportunities for observing the way
in which our monetary system operates
on the masses of the people. Mr. Pratt
accommodations he requires. and his
wealthy friends and associates can always
do the same. He imagines. therefore.
that all the world has the same adj
vantages that he has. But Mr. Pratt
makes a fatal mistake In coming TO this
conclusion. Our national banking system
Is rich mans system. It subserves
the purposes of the rich most admirably.
But the average man, who has no friend
president of national bank, has no
more chance to get bank accommodations
than thirsty mariner in mid-ocean on a
raft has TO get drink of water. The
national banks are at the commercial CEN
tres. Their officers do not know the
farmers and the farmers are utterly
powerless. therefore. to get accommoda-
lions at bank.
Notwithstanding the satisfaction which
the national bank system gives to wealthy
men, like Mr.. Pratt, we are surprised TO
find broad-mnded man like him, who
has lived through most OF the formative
period of our currency and money, taking
the narrow view of the subject that he
does. our financial history is very brief
4 In important facts. but those facts are of
the most instructive character.
We started after the Revolutionary war
with immense debts. with the most limit
ed resources, and with currency sys-
TEN that had gone TO the dogs and had
10 be entirely recognized and started
anew. The new system had hardly got
on It's feet when the war Of 1872 came on
the country and caused its feeble foun-
dations TO break down entirely. After
peace We commenced again to slowly re-
construct a financial system, but our
situation was embarrassed by the exist
tnce OF the Bank of the United States, n
gigantic monopoly that interfered in the
most arbitrary and outrageous way with
the ordinary progress Of business in
the State banks.
This brought on the celebrated contest
between the Bank of the United States
and President Andrew jackson, with the
Democratic party at his back. which
hnally resulted in CO greSs refusing TO
renew its charter which expired in 1922
and IN the collapse and failure of the
bank. But, to compel its recharter, in
the later thirties IL worked all its agen-
cies spread all over the Union, to pro-
Juce financial disorders. and this resulted
N the panic OF 1887. The Bank of The
United States died. however. then, and
trom that time until the war the country
lived In the state contemplated and in
tended by the trainers of our Constitu-
ton. We had no money but coin. but
every State chartered banks which is
sued their notes payable on demand in
coin, and the country grew and pros
pered as no country ever did before
There We're no very wealthy men, but
prosperity was universally diffused
amongst the people and everybody was
well of. OF what consequence was II IL
we had money changers on every State
border" and notes of one State at
discount In another? How pltiably small
were these evils when contrasted with
the fact that credit was everywhere I'M
locked and that men were enabled TO
utilize all their resources in fufthering
the aims OF their business. IL we found
North Carolina bank notes In Rich
nond. which had TO be scld TO note
shayers. we may very well imagine that
the parties interested found Il 10 their
account 10 have them here. The meaning
of,t was that Richmond merchant had
un,d goods 10 North carolinan upon the
.,.Asment that he would take paymen;
q, North Carolina bank notes. The Rich
,nonA merchant In making the sale. al