Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-06-16
nm, c,..1I,y u.NKING SYSTEM.


ing system. Not only in the Southern
states are the people calling for divorce
OF the banks and the government but
many OF the ablest experts in the Norlh-
ern states Join in the demand.
-Four years ago the Democratic Nation
n Convention inserted in ifs platform
a plank calling for the abolition OF the
tax pon the circulating notes OF state
hanks. and the proposition was carried
into Congress: but the House OF Repre-
sentatlves refused 20 abolish the tax.
This refusal was pretty good evidence
that the present notwithstanding system
f. popular in many quarters. and that 1t
will not be easy 20 set rid Of II. even II
large section Of the Union calls for It's
abolition.
The northern fnanciers call Tor ne"
banking system because they want banks
which are not tied to the government.
The southern people call for new BANK
ing system because they want more money
or currency. North and South there are
nooole. also. who have become attached
10 the greenbacks and viii not so much
az consent to hear any argument IN FAVOR
OF Withdrawing the greenbacks from cir
cu!ation. 1t would seem that there coula
hardly be an issue Joined between the
two great national parties upon this sub
iect. but this might turn out 10 be a
mistaken notion. for certainly In lN2'
when next 10 nobody was calling for the
abolition Of the bank tax, the Democratic
National Convention did not hesitate
20 recommend" its repeal.
without committing ourselves 10 any
particular scheme Of banking 70 supersede
the one now in operation, We may say
that in the Bankers Association Of Nir-
ginia year or two ago the Canadian
bank system seemed TO be the favorite
scheme. What IS styled the Baltimore
scheme has also been highly commended
in Virginia. The Canadian system is
spoken Of by the Baltimore sun as fol-
lows:
Those banks are restricted by no rigid
law with respect 20 the notes they issue
except in one thing-the issue OF their
notes is practically limited 20 tho amount
Of their paid-ln capital. But the dStln-
gushing feature is the conceded il5ht
10 retire and cancel currency when II u
not needed. and TO reissue currency up
10 the fun extent of their capital when IL
is needed The rate Of interest Is low
and uniform. and is no higher in Win
ufueg than 60 IS In Montreal. The cl'cu-
latiOn is so distributed through the
agency Of the most important banks ana
their branches that there is no scarcity
Of money al any point. II more currency
Is needed anywhere it is increased
and often during the busy months 10
the extent OF . per cent When II mas
performed its functions II is Withdrawn
and cancelled and is reissued when n
new demand for larger accommodations
occurs. This currency, under the wise
and conservative administration OF the
bank officers. unlike our old State-bank
issues. circulates everywhere throughout
Canada at par and IS said TO be 'pracu-
cally as sound as the currency oi our
national banks"
1t is worthy OF notice that high com
pliment Is paid TO our banking system
i'm the suns remark that the Canadian
currency lis said 10 be practically as
sound as the currency Of our national
banks"
1t is complained as TO our system That
It lends money 10 city people and not 10
country people and lends 1t upon secu-
rites which are available 10 the city
people and not 10 the country people
| The Canadian system. a. Interpreted by
the sun. touches this point. We quote;
'Tn the matter Of loans the banks are
| given "A much larger latitude than with
| ms i'm the United States. Practically We
are told. most kinds Of property, incil-
| ding real estate, may be taken, directly
or indirectly. as security for loans. Di-
rect loaning Of money on mortgage Of
| real property is forbidden. but such NOR
| CAGES may be- taken 10 supplement other
| securitv No loans are made. as ln our
| Southern States on the hypOthecation OF
! crops vet 10 be raisCd-cOttOn for in
| stance-'but the banks VIII and do lend
upon crops after they are harvested and
! housed Cana Han banks voluntarily UNI
! dertake this function. charging but a
| moderate rate OF interest for the loans
| they make. ana a further interest On
| the sum lent for the period the crops are
! held in store until they are Withdrawn
! for sale. the crops continuing 20 be the
security Of the banks until they are sold
! and the amount Of the loan, with the
| accruing interest Is repaid
! II the silver question does not over
ride II. as we must confess we expect II
| will. the substitution Of new banking
system for the existing system viii be
one Of the most important questions be-
fore the Chicago convention. Indeed. there
is no good reason why it might not come
10 also in the ST. Louis convention.