The times. [volume] (Richmond, Va.) 1890-1903, 1895-11-27
THE SPIRIT OF THE VALLEY on
LOCAL BANKS.

upon our recent article reviewing Grand
Master Workman soyereign's attack
upon banks and bankers, says: 'Ihe
kind Of currency which The Times seems
TO want Is one which Will not circulate
out Of the aeighborhood where It Is is
sued"
And II the people OF a neighborhood
can transact all Of their affairs with
currency that will not circulate outside
OF the neigborhood in which II is Issued,
why should they not have such cur
rency? II they can get none OF the
currency that circulates in all neighbor-
hoods. and can have an abundance OF
currency that will circulate only in their
own neighborhood. and that currency will
answer all OF their purposes, IN the
name Of common sense why should they
| be denied this latter currency?
Dealing with our proposition that the
gamblers and spectators IN stocks and
farm products Will make the banks at
the commercial centres suck all the cur
rency that will circulate all over the
Union to themselves, the Spirit OF the
Valley says that If the notes OF local
banks are rcdeemable I'M gold. and II
there is a reasonable certainty that they
will be redeemed in gold when presented
for redemption. then these notes would
carry as much credit as notes founded
upon the credit OF the United states. and
they also would 30 to the commercial
centres.
Reasonable certain" In the minds OF
whom? There may be an absolute GER
tainty In the minds Of people who live
near country bank that IT'S notes viii
always be redeemed in gold. and sucn
notes may, therefore, absolutely serve
the purposes of those people, when the
people in New York know nothing OF
that bank, care nothing for 90. ana viii
not have its notes upon any account
Such notes may. therefore, be perfectly
good. and serve the purposes OF "a neigh
borhood and yet be utterly uncurrent
two hundred miles away from the place
Of their issue. In point Of fact Great
| Britain is covered over with local banks
MItSt lVAto tilAAiaNH 1T ttiN At' -rHtt'r-
hood where they are issued, and are set
at a discount one hundred miles away
from their place Of issue. That is the
IDEAL system of banking The Spirit OF
the Valley must see. therefore. that Ihe
| Times proposition is not that "a cur
rency of doubtful value-a currency the
security for which is not such as to in
spire conndence-should be issued The
Times proposition IS that It should be
a currency Of absolute value. but, being
issued upon a local instead OF the public
credit. II will remain in the locality in
stead Of going out into all parts of the
nation. The Times idea is a form OF
the blessed proposition Of local self-sov-
eminent. which is the only sound idea
uponl which lasting and good govern
mont can be founded.
The Spirit Of the Valley says 'If COM
| munity can support a state bank, II can
Just as readily support national bank
If everything involved was simply taking
out charter from a United states
court. instead of a state court, that
would be true. But that is not the
| case. TO become national bank con-
ditions are required that the locali-
ties desiring to establish small banks
cannot comply with. THESE are condi-
tons prescribed by a parental govern
ment which proposes 10 Keep a tender
and watchful eye upon the transactions
of all its children TO see that they never
yet bitten in bad bargains IL saves
them money. perhaps, i'm some ransac-
tions, but then II kills millions Of other
fortunes. The vice of the system Of a
| transactions in which they might make
| national currency IS that it rests upon
the socialists proposition that the gov
eminent must be a father 10 the people,
and that 1t puts a destructive abridge-
| ment upon the natural rights OF the
people to trade as they Will. Millions
of transactions took place amongst the
country people under the old system OF
State banks where not one taxes place
nov. because there are no local banks az
which the people can negotiate their
credit.
The spirit OF the Valley says: I'VE
know OF no place in Virginia where
man who can get q satisfactory endorser
cannot get money loaned to him by the
banks" Get a satisfactory endorser' ..
What a mockery. The national banks
Of Richmond viii not lend money TO the
Russell-couuty srazier upon the endorse
men; OF another Russell-county grazier,
however good his credit They require
i the endorsement OF a Richmond man
whose credit they know 10 be good. But
the Russel-county grazier has no Rich
mond endorser, consequently. he can get
no money from a Richmond national
bank But If banking were free. and
/ he had his little state bank at Lebanon,
whose managers knew his character and
resources he could get all the money he
wanted with no endorser. or. II an en-
dorser were required. ne could produce
his neigl.bor. whose character and credit
were known 10 the manag gers of the Leb-
anon br>k, and ne could get all the ac-
commodation that he needed
Under the one system. he is denied al
accommodation in fact although the
whole bank Is open 10 him in theory
urtlaf. the other b.. is ALWAYS able 10 get