Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-06
BANKING REFORM.

The Nation. in an article on Banking
Reform" says:
eft is certain that the country is in no
mood for q return TO the old, miscel-
Ianeous sort of bank-note issues. which
prevailed before the war. however pleas
ing that might be to the states
south of the Potomac. If the evils sure
ly attendant upon that system. or lack
If system. could be confined to the states
which believe in II and want it, the ques-
ton would be very different.
The first clause of this paragraph con-
tains a characteristic northern misrepre-
sentation Of and fling at the South
the second clause is instinct with north
ern selfshness and sectionalism.
AS we have stated elsewhere in these
columns this morning, the cause of state
hanks Of issue does not seem TO be de
welcoming very much strength. This is as
true of the South as it IS of the North.
But. even were such not fact, the Ma
TONS fling at the South would not be
robbed Of its uniustness. The impression
sought to be produced by the Nation In
its reference to "the old, miscellaneous
sort of bank-note issues" and. for that
matter. throughout it's entire article IS
that the South before the war was
welded. and Is still welded. to a rotten
banking system. The truth IS, however.
that. owing to prejudice. the constant
elorifcation Of the misunderstanding sys-
TEN in the great money-centres, and
perverslon Of facts. an immense amount
of ignorance prevails regarding the old
State-bank system, and the important
part it played in the development Of the
country at large.
Defective as was that system. in some
respects, it was far from being as bad
as the post-bellum. national-bank. flnan-
cial doctrlnaires have delighted to paint
it. Moreover. It embraced many features
on finance, who are Independent OF the
national-bank influence, regard as a most
substantial foundation for the erection
of a new currency superstructure.
| 1t is true that here and there may be
found men who honestly contend that
the re-establshment Of State-bank
| system, just as IT existed before the war.
would solve the financial problem; but
we believe that as a class, the most
ardent advocates of State banks Of issue
would not now incorporate I'm the system
all the features OF the Old regime. As
many see II, the greatest difficulty that
would be encountered in a return to
| State banks Of issue would be that Of
keeping the notes OF the several banks
at the same value throughout the coun-
try Others hold that the great beside
ratum in making a return TO the sys-
tenn satisfactory would be to afford
greater security to the note-holder than
obtained under the Old plan-as good
security as Is behind the national bank
note-and that the accomplishment o.
this would carry with 1t the solution OF
the first-named difficulty. To our mind.
securing the note-holder is an-important.
Therein the Notwithstanding system has
a powerful recommendation
However. the masses at the South
and, indeed, the masses at the North
outside OF the banking centres-care worry
little for any system as a system
| what tHty NdIi, NIdL NitH ntCtSSiiirr
demand, is reform in banking thai
will give greater volume of stable
currency and a wider distribution thereof
with that currency not subject TO sudden
contractions and to the control of thC
New York hnanclers. These they recognize
are the three things needfu to the re-
s,oration of prosperity. What is more
the masses will never be satisfied unit
such reform has been inaugurated. Say
what the Wall street organs may as 70
the meaning OF the verdict OF last No
| vember the currency question will never
be settled so long as our financial sys-
TEN remains unchanged. The South will
meet the rest OF the country half way
| In any reform in banking, that would
| give relief to the whole country, and
would not. like the Nation. be Indifferent
TO the evils that an unwise currency
system might infict, provided the evils
could be confined to the States" which