The times. [volume] (Richmond, Va.) 1890-1903, 1896-09-11

! useful banking system I'm the world "hiic
| they use the least amount or what Is
| commonly called money!. e., notes ana
coiu-of any community. Their develop
ment OF all branches o. industry would
have been restricted except for their
| banking system.
! Their standard or unit or value Is tne
| British standard or pound sterling Whlcn
formerly meant one Troy pound OF $3.50
| grains OF silver: and now means ll5.Volb
grains Of gold. The silver has been tried
and found wanting. while modern British
| and Scotch commerce and industry have
been built up on the safe foundation or
a gold standard. There is no coin Of the
name CT pound"
The notes and deposits OF all Scotch
| banks are payable in pounds sterling, or
| I'm the coin equivalent, named n SOY
ereign." Silver coin Is subsidiary, ana
| IS redeemable in muluples In gold.
The ScCtchman knows what service the
| bank does for him, and its service is
| brought 10 bis very door in the remotest
district lie keeps no idle money about
him, but puts IL I'm the bank for profit
| and safety. lie would tell those who
clamor for a large supply u circulating
money per capita that their demand gave
evidence only Of their own ignorance OF
tho service OF a bank.
The basis Of industry and banking alike
in Scotland are their long-cstablished
system II schools the character and ca
pacity Of tho people and the credit based
on mutual trust and mutual service. which
exists. and unites the farmers, the me-
chanics, and men ~ business, and the
banks, ia promoting tie interest OF the
whole community.
There are. or were when the writer
first studied this system. eleven great
banks, On the principal cities, and these
banks had about one Thousand branches,
extending their service no the least cost
10 every hamlet These banks maintain
their principal reserves Of coin in Lon
don. keeping I'm their cwn vaults enough
gold 10 meet any probable demand upon
them. Their agents arc chosen with due
regard 20 their standing and repute in
each In bis own community, thus. at a
minimum OF expense. with maximum ot
efficiency. the whole country is served.
Notes are issued under stringent rules
for absolute redemption Deposits are
taken as they are in our own banks,
and discounts o. commercial paper arc
made as with rs.
The ono element ir The system which
renders it or the greatest service. espe-
ciaiiy 90 farmers Is The grant of a credit
on a ledger or book account. without the
executicn OF any notes. ard subject 90
a charge o. interest only SO far as o.
ls drawn upon by whoever has accepted
the credit
An example ~ how if would work in
this country as &c has worked in Scotland.
may Dee the best way to make this sy7
tenn plain. We will put tho example in
Virginia. as that Is now one OF the richest
States in tho Union in natural resources.
ard one OF the poorest bon development FOR
lack ~ sound banking system and am
established credit suppose the Scotch
lu.kiug system is in existence. a few
men OF good character with only money
enough to establish themselves, have
taken MP n considerable amount of land in
that MAGNIFICENT country around SaltvUIe.
fn the southwestern corner whore some
Northern capitalists are developing
great aikau industry There is no finer
climate. no better soil. and n0 greater
opportunity in this whole country t.
osabush a true commonwealth ~ farmers.
mechanics. and artisans than in that
wonderful section. The same features
exist from there over an area as large
as France. Waiting for the same develop
rtent. but "thera is no money here
men say. "Ve CAME g~, any credit say
others: eve have no banks" say some
while others say. 'hop SAy'och5 away
we dent want any,
Nov. let it le assumed that the unit
or standard of yaiuo-a dollar made or
rod-has been absolutely anl finally es-
tabushed On Nov mber. MS DO viii be. ami
the banking system adjusted % our cone
dltions and needs.
Northern capital and foreign capital aro
pressing for eafo investment through Sew
York. Philadelphia and Baltimore han".