The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-08
AEAY OF HOPE AT LAST.

a isA1 vi HUE Al IANI.
The amendments to tho national bank
act which the House Committee on Banks
ana Banking have determined 10 report,
are good moves in the right direction, and
they viii cause great easing on the ten
sion from which the country suffers If
they are adopted. They propose to allow
national banks TO issue notes 70 the
par value of the bonds they deposit, and
TO allow national banks TO be Incorporate
Cd with a capital Of $4,000 or $1,000
better $4,000 than $4,000. If these amend
mcnts are made to the national bank
act they viii bring material relief 10 the
| pcople-the permission to start bank
with 10000 of capital especially. This
viii, we believe, make IL possible TO have
banks in all communities where there is
business enough TO justify them. The
present limit Of $4,000. with the privilege
Of issuing only 20 per cent. Of the face
value Of the bonds. puts them beyond
the resources OF small communities.
But al measures Of this sort are mere
expedients az best, and mono Of them deal
| WITH ttAH NaHN eNiAANltlB ~ Allf N'ANdAiuo
Of its nature and fundamental conditions.
| All OF them treat banking rs though it
were an appanage OF a national debt.
But a rational debt is not blessing
but q curse 10 a people that is 90 DO
gOt rid of Just as soon a. il can be done,
while sound banking system is a sine
qua non 10 any healthy progress and
Development by any people. What would
We do, according 10 the theory of the
advocates of national banks if we should,
as we ought TO do. pay of our entire
national debt? Upon their theories we
should have to sit down and do without
any banking system at all. The national
banking system is founded upon a nation
Il curse, and a prion reasoning would
therefore lead inevitably 10 the coaclu-
sion that it must contain in itself the
clements of q national curse. Obserya-
ton of iis practical working will soon
show an Intelligent mind that It contains
all the clements or the bad that could be
looked for from its parertage.
Banking should joe as free as the bust
ness OF selling dry-goods or groceries.
There is no more in the nature OF bank
ing that demands the patcrnal eye ana |
hand OF a government to witch over and |
coddle it than there IS ia any other busi- |
ness conducted by private parties. Money |
is just as much the Subject Of trade, /
negotiation, purchase, and sale IS dry
goods or conco-pots Tho idea that de- /
mands government enterprise to see that
banks always redeem the notes they is
sue Is at bottom nothing but pure So
cialism. Tho real object which it has
in view is 10 put the government into
the position Of a guardian for its chill
dron 10 watch over them, and see that
tracts made between them. But this is
not democracy, nor O healthy idea OF
government either The true idea of gov
eminent is that it shall always intervene
with The strong arm Of the whole people
to restrain ono citizen from trespassing
upon the rights of another citizen. and
that 10 shall then leave each citizen 20
work out his OWN destiny In his own way
according TO his strength. it should
neither aid nor einbarras any citizen in
any way whatever. 1t should leave them
al 10 their own contrivancos while they /
deal with each other without violence.
Man being left with this entire free
SON. finds that tho most important ac-
.cssory for working out his views is Il
financial System that gives him control
81 unlimited media OF exchange. But "A
reat body OF men ran into most in
unous error at this point. 4 great body
blink that because they need an unlimit-
% supply OF media OF exchange they
therefore, nec1 an unlimited supply OF
ctual metallic money. There was never
erosacr error since the world believed
hat The snn rolled around the earth.
,soC.t substitutes FOR money are just
xacly as effective as media OF exchange
8 money itself. All that IS necessary {
mako these substitutes perform the :
uncuons OF money Is that there shall d
% perfect confidence that they can be f;
DIVERTED into money whenever the hol- 6
er OF them chooses TO demand money. a
that confidence exists the credit SUBJ O
ututes do everything that the actual =
honey can do. Very little actual money. \
hen, VIII answer as the basis of an y
immense volume Of credit substi- \
itos. and these substitutes are checks !
No drafts ana balances on mcr. y
nants' books. as well as bank notes. n
nc needed confidence can never grow ,
a. OF acts Of Congress. II grows up ,
ON the dealings Of men with each II
.hor. \
What the country wants. then, Is q p