The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-17

out the adoption or one or the othtT OF
those provisions the 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 five per cent. redemption
fund and. although the Government
would he under no legal obligation 10 re-
deem with "A different kind OF currency
from that deposited, there might be cir
cumstanccs under which its refusal 10 do
80 would create financial disturbance by
impalring confidence In the value OF the
notes
Whatever objections to national bank
ing system may have heretofore existed,
or may still exist, among our people
upon economic or other grounds, the TACT
must be- recognized that II has been so
long established. and. Notwithstanding
ife admitted defects, has served such a
useful purpose in furnishing convenient
form OF currency Of uniform value
throughout the country. that an attempt
at this time TO abolish II, or materially
ahridgc the franchises OF the institutions
organized under IT., would not only be
unsuccessful but would provoke IN
furious agitation when the precarious
con Iition Of our fiscal affairs demands re-
pose and such "A restoration OF confidence
as will enable the people TO avail them
selves Of all the facilities that can be af-
forded for the transaction Of their bus
mess The national banking associations
now in operation have been established
under characters granted 10y the Govern
ment. end 80 long as they arc obedient
q, Tine laws and useful 90 the community,
&C. would Doe an act of bad futh 10 deprive
them Of the privileges thus secured but
IT, without dctrimcut to any interest tie
. lon. f..
tended as to bring them closer 10 the pc0-
ple I'm parts Of the country remote from
the large towns and cities their capacity
for useful service In aifOrding accOmoda-
tions TO our farmers. merchants, and
others engaged i'm business viii pc greatly
increased and We should not hesitate 10
make such amendments 10 the laws as
would most certainly accomplish this pur
n0-e. one Of the most serious objections
heretofore urged against the system as
ID now exists mas been that. while IT is
well adapted 10 large commercial COM
mfinitioe. where capital is easily conccn-
tratod. il has not furnished the necessary
banking facilities TO the small centers
of local trade where, especially at GER
lain seasons Of the year, such facilities
are greatly needed 10 assist In cultvat-
ing. gathering. and removing our surplus
agricultural products All our trade IN
those products. which constitute such
large and important part of our domestic
and f0reirn commerce. begins in the To-
calitios where they are grown. ana IL is
there that the means for their ilrst move
mcnt must be- provided. II must evident,
therefore. that any system wnich VIII
rrornnta such a distribution of the loan
able capital Of the country as VIII make
a. easily accessible. upon reasonable
FERNS. TO the producers and purchasers
of these products. must be highly beneh-
ciaf TO both. and ! am satisfied thdi, IN
der present conditions, the only success
fiu ATTEMPT that can be made 10 secure
these benefits is SO 10 amend the law as
TO hermit national banking associations 10
establish branches for the transaction OF
All kinds of business now authorized, cN-
cept the issue Of circulating notes. 10y
receiving local deposits and discoununs
local bills and notes, these branches Wouin
NOT only make the capital and resources
of the parent institution available when
needed i'm the localities where the branch
es are established. but thsy would coll
lcct and utilize i'm the business transac-
lions of the people all the surplus accu-
munitions of their respective cominuil-
ties These Accommodations. although small
go detail. are quite large in the aggregate
fn every industrious and thrifty commu-
nifty. and If they could De actively en-
ploycd. when needed in the circulation
they would materially aid I'm relieving the
etrinponcv. which. Notwithstanding the
abundance Of currency I'm the Anancial
ccntors. Is sometimes severely felt ~
particular localities.
The failure Of the national banking sys-
tenn az IL now exists 10 meet THESE Local
requirements H. unavoidable under the
law now i'm force. which prohibits the
organization of any banking association
with "a capital less than $4,000, and per-
mlts their organization with this mimi
mum amount only in places having a
population of six thousand and less.
Places having population exceeding SIX
thousand no matter how small the eN-
cess may Dee. are compelled 10 raise can
ital Of 100000 I'm order 10 secure banking
facilities under the statute. and If the
population exceeds fifty thousand the
canital must not be less than 100000. The
result of these provisions is that the peo-
ple I'm the smaller classes OF towns ana
cities. being unable 10 raise the amount
Of capital required by the yaw. are de-
urived of the advantageous enjoyed by
The citizens OF the larger places, ana are
consequently compelled TO rely Tor accom-
modations upon banks az distance, or
harrow from commission houses, brokers,
and others nearer home, at high ana ire
ouently eXorbitant rates of interest The
authority 10 establish branches, which
will De legally and in fact simply adjuncts
of the main association. and subject 10
the same limitations. restrictions. and SUI
pervisiOn as the other business OF the cor
poration. Will. without i'm the least i'm
paring the strength or credit Of the sys-
lem. extend its benefits TO a great number
of our people who are now subjected. for
the reasons stated. TO great Inconvenience
and more or less loss on account OF their
inability TO secure means for use IN the
conduct of their business. As the ma
tioual banking law IS now construed
branches cannot DE maintained except hy
converted state banks, which are per
unified TO continue such branches as they
had i'm operation at the time of their or
rauization under tine national system and
thes are so few i'm number as 10 be OF
no great importance.
During the past year official intorma-
,ion has been collected through the office
OF the Comptroller of the Currency ~ re-
iatiou 10 the banks and banking systems
of Twenty-Five countries. from which II
appears that though their systems differ
widely i'm many other respects. they all
hermit the establishment and operation OF
branch banks. and one of them, France.
makes their establishment compulsory. I'm
nearly an the old State banking systems !
In this country. branches for the transac-
lion of commercial business. and. i'm some |
cases. for the issue OF notes. were pro-
cidod for. and they are now authorized |
and I'm operation under the laws OF TWEEN |
~ States SO FAR as known, the policy |
,f permitting the establishment Of branch |
ss has been entirely successful. and the |
L. .IN. d