Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-12-17

ton by the Treasury 10 continued. the
Secretary should have the power. after
"A future date. TO be fixed in the law. to
require the banks 10 keep their per
cent. redemption fund in gold coin and
TO deposit gold coin for the withdrawal
OF bonds whenever circulation is TO be
permanently Surrendered or reduced
Without the adoption OF one or the other
Of these provisions che holders OF bank
notes, after the retirement Of United
states notes and Treasury notes might
demand the redemption of such notes IN
gold, even though the banks had not
deposited that coin In the per cent re-
dempton fund. and. although the govern
mont would bc under no legal obligation
TO redeem with a different kind OF cur
rcncy from that deposited. there might
be circumstances under which its refusal
90 do so would create financial disturb
ancc by impairing confidence In the value
OF the notes.
Whatever objections 10 national bank
ing system may have heretofore existed
or may still exist among our people. upon
economic or other grounds. the fact must
Dee recognized that IL has been SO long
established. and. Notwithstanding its adj
mittcd defects. has served such a useful
purpose I'm furnishing a convenient form
OF currency OF uniform value throughout
the country. that an attempt at this
time 10 abolish IL. or materially abridce
The franchises Of the Institutions organ
lied under ii would not only be un-
successful but would provoke injurious
agitation when the precarious condition
Of our fiscal affairs demands repose and
such restoration OF confidence as Will
enable the people to avail themselves Of
all the facilities that can be- afforded for
the transaction Of their business. The
ration have been established under char
tcrs granted 10y the government and so
long as they are Obcdient TO the laws and
useful 20 the community II would be
an act of bad faith 10 deprive them of
the privileges thus secured: hut, II.
without detriment 90 any interest, the
scope OF their operations can b. so extend
al as TO bring them closer TO the
people in parts Of the country remote
from the large towns and cities, their
capacity for useful service in affordng
accommodations 10 our farmers, mer-
chants. and others engaged in business
will b. greatly increased. and We should
not hesitate TO make such amendments
TO the laws as would most certainly ac-
complsh this purpose. One Of She most
serious objections heretofore urgee against
the system as II now exists las been
that. while IL is well adapted to large
commercial communities. where capital IS
easily concentrated. it has not furnished
the necessary banking facilities to the
small centres Of local trade where, espe-
ciallv at certain seasons OF the year.
such facilities are greatly needed 10 as
sist I'm cutivating, gathering ana
removing our surplus agricultural pro
ducts. All our trade in these piouuc's'
which constitute such a large ana I'M
e domestic
commerce. begins i'm the localities where
they are grown. and IL is there that the
means for their first movement must De
provided. 1t must be evident, therefore,
that any system which Will promote suCh
distribution Of the loanable capt.
tai of the country as will make II easily
accessible upon reasonable terms 10
the producers and purchasers OF these pro
ducts. must be highly beneficial to both,
and / am satisfied that under present
conditions. the only successful attempt
that can be made to secure these dement's
is so 10 amend the laws as TO permit ma
tional banking associations TO estabhsh
branches for the transaction Of all KINDS
~ business now authorized, except tne
issu. Of circulating notes. by receiving
local deposits and discOunting local DIS
and notes. these branches would not ohiy
make the capital and resources OF thc
parent institution available when hetd-
"a i'm the localities where the brahches
are established but they would coiiecI
and utilize in the business transactions
Of the people all the surplus accumula-
tious OF their respective communities.
these Accommodations. although small in
detail. are quite large in the aggregate
I'm every industrious and thrifty commu-
nifty. and if they could be actively en-
Moved. when needed in the circulation,
they would materially aid in relieving me
stringency. which, Notwithstanding the
abundance OF currency in the financial
centres. is severely felt in particular To-
calities.
BRANCH BANKS.
The failure Of the national banking
system as II now exists 10 meet these To-
cal requirements is unavoidable under
the law now in force, which prohibits
the organization Of any banking associa-
ton with a capital less than SOVp' ana
peruits their organization with this mini
mum amount only in places having A
popuIation OF 500 and less. Places hav-
ing a population exceeding 5000, no mat
Ter how small the excess may be are
compelled TO raise a capital Of SlVJVJ III
order 20 secure banking facilities under
The statute. and n the population eN-
ceeds % O00 the capital must not be less
than $4,000. The result OF these provi-
sions is that the people in the smaller
classes Of towns and cities, being unf bic
10 raise the amount Of capital required
bv the law. are deprived OF the ad-
vantages enjoyed by the citizens OF the
larger places. and are consequently COM
pelled 10 rely for accommodations upon
banks at a distance, or borrow from COM
mission houses. brokers and others
nearer home. at high and frequently eN-
IF.F
~ establish branches, which will be le-
oallv and. I'm fact, simply adjuncts Of the
main association, and subject 10 the
same limitations. restrictions, and SUI
nervieion as the other business of the |
corporation Will without In the least |
impairing the strength or credit
Of the system, extend It's benefits 10 a /
great number Of our people who are now
subjected. for the reasons stated 10
great inconvenience and more or less loss
ON account Of their inability 10 secure /
means for use in the conduct of their
business. As the national banking law
is now construed, branches cannot be /
maintained except by converted state /
banks. which are permitted to continue
such branches as they had In operation |
al the time Of their organization under |
the national system. and these are so
Few i'm number as 10 be % no great I'm |
portancc.
During the past year official information /
has been collected through the Office /
M the Comptroller Of the Currency in /
relation to the banks and banking sys-
ems of twenty five countries, from which /
ii appears that. though their sys-
TENS differ widely IN many other re-
spects. they all permit the establish !
m4nt and operation of branch BANKS. I
and one az tnem France makes the /
COMPULSORY In nearly All /
the old state banking systems IN TINS /
country branches for the transaction OF /