The times. [volume] (Richmond, Va.) 1890-1903, 1895-07-14

limits their transactions with their pest
customers. and they cannot charge more
than six pcr cent, though money may be
worth much more. and the borrower
would gladly pay more. These disconras-
ing features make men turn from the
proposition 10 establish small banks IN
small towns. and the great body or the
ncoplo are left, therefore, without banks.
The national banks rise up at the COM
mercial centres whore large capital can
be raised. the profits from when anu
from its deposits compensate for the re-
strictions imposed by the law. Now, see
how differently the people OF virginia
would be situated If our laws were what
they were prior 10 the war. a oank III
1860 with $1,000 Of capital would DC
thought safe in issuing, perhaps, sivovvo
OF notes on 1t. Instead. then. OF dong
business as now with $4,000 OF notes uor
that Is the amount OF notes that wouiu
be issued 10 10, II would do business "l1h'
perhaps. $4,000 Of notes. 1t could lend
on real estate, II II saw 1T; IL could lend
on its own stock If II chose. and IT could
lend as much as It thought prudent TO any
one man. II Is not probable such banks
would issue three dollars OF their notes
for one dollar OF their capital. Between
1894 and 1861 the Virginia banks, IN the
aggregate. never had out as much as two
dollars Of their notes to one dollar OF thelr
oapital. and the amount OF their notes
was oftcner below the amount OF their
capital than above 1t. But they always
had out notes to the extent of five and six
dollars Of notes TO one Of specie held. But
the banks were all sound, and their notes
furnished our people an abundant curren-
cy, that was as good for all our purposes
as any currency ever possessed by
people. 1t was day when all men could
az all times get all the money they need
ed. provided they could give good security
for It. The banks w,lo scattered through
the country and their managers knew
the people. and knew what ci.ch man had
u right TO boz; ow. Now, all the banks are
II the commercial centres. Their man
ayers do not know the people living out
Of sight Of the bank. a farmer with rich
land and fat cattle can get no accomino-
dations at bank. because the manager
does not knew him. and in the midst of
abundance he is forced 10 starye.
Tho foundation of our ante-bellum
banks was this: A bank-like the Farm
ors Bank OF Virginia. for instance-was
chartered. The charter of that particu-
lar bank was granted by the Legislature
in 1872. 1t was to have a capital of $780,
GEO. divided into 5000 shares Of 500 each.
1884 shares were reserved for the State;
and the rest was divided thrs: 1900 Of
them were TO be subscribed for at Rich
mond; 1900 at Norfolk; 1900 at Peters
burg. and the rest at Lynchburg and
Winchester. This made one bank operat-
ing at these five places, but 1t was one
bank all the same The capital subscribed
at Norfolk was retained there, and man.
aged by a Norfolk board Of directors.
and so of Petersburg, Lynchburg, VIM
chester. and Richmond. Each place had
its local board of directors. who knew
the people Of the place. The thing work.
ed like a charm. The notes issued at
each branch were according to the need
Of notes at that place, but the whole
bank in all its brtnches was bound for
them, and they commanded universal
confidence. therefore. This is ideal bank
no,
will grow up at every village where
there is business enough TO support IT,
but its notes will be the notes Of the
parent bank, binding on all the resources
will make the notes perfectly good, and
will spread banking all about amongst the
people. wherever there is business enough
to Justify a bank, and each branch will
be managed by local board of directors.
who are managing their own money, and
know exactly what credit each man APP
plying to them for a loan is entitled to.
IL is easy TO see, then, that under such a
system we should not have bank spring
ing up at Emporia, or Chase City, with
a capital Of $4,000. and issuing its notes.
We should have a great bank at Rich
mond. with capital of two or three mil
lions Of dollars, having branch at EN-
poria. resting upon capital contributed by
the people Of Emporia, and managed by
citizens OF Emporia. the notes of which,
however. would be the notes Of the great
bank at Richmond, backed by its great
resources.
This Is what the people are entitled to
under our Constitution. VIII they ever re-
gain their rights?