The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-22

I
vote given "a November last IN the cities
OF the South for sound money. viii be
given in 1900 even for free coinage Of sli-
yer. In order 10 force a change from the
present banking system. I do not believe
that We could I'm our vast country saieiF
! obIitcratc state lines. and do without our
| state Governors. Legislatures, ana courts
nor do ] think that state can wen %
| without rs own banking system. hN@iy
natio.. I'm the world has It's own p"h"'is
system. while the territory OF i'il 81
them is smaller than that n one cf our
States. IL should not hc "a 1attsr OF sur
prise then that uniform bar" ng W.
e. n. intended 10 answer ;he varying CON
| ditions over all the vast tcrrio.Y 81 our
Union. should have proved a t"H. ie
one Of the provisions OF bankng act
may work well where there is a great
accumulation OF wealth, while In COM
,nuritics less favored by fortune Z
| would prove disastrous. II have hefelh-
before mentioned the provision In the
! national bank act making the stockhold-
or liable for double the amount OF his
stock That may be reasonable when
/ tho bank IS located IN q wealthy COM
/ munity. yielding 10 the bank large pro-
fits from enormous deposits, but IN thinly
populated sections. with but little wealth
! the CAPITALISTS who will invest money 70
"a
/ not only lending their money whore
1 wanted. but establishing a place Of safety
! where the small savings Of the cOmmhl-
| itv may be deposited 10 swell the avail
| able capital for the use Of those whose
business requires them 10 borrow money.
| Should such capitalists be deferred from
/ thus doing good by being required TO take
double risk?
STATE BANK CURRENCY.
a "a
| South. We have one I'm Richmond.
whose income would enable him 10 or
| ranizo several national banks each year
| and vet as he told me q few days ago.
/ no had never invested a dollar IN ma
| tional bank because Of the double RISK
The Southern States can never have
! n full measure Of prosperity uhtli lhey
| have moro banking capital 10 luihlSh
! currency TO the agricultural districts
even II only local currency. Inc ora
| state bank currency was confined 10 tne
| state I'm which IL was issued. That IS
| TO say. the banks I'm another state dln
! not receive il on deposit, and there was
an advantage in that. A bank noic
! that will pass unQuestionod IN any sec
! ton Of our vast country is a great con-
| vonfcnce TO those who travel from state
/ to State but the fact that IL is so re-
coivcd everywhere. by individuals and
hanks becomes an Objectionable feature.
when at slight expense the notes are
| Skinned 10 points where some extra or
binary demand attracts them, leaving
communities from which they are taken
10 suffer seriously from a scarcity of cur
rency.
Exporionce under the old state bank
system leads me to think that a return
TO that system would be better for the
whole country than 10 retain the pres
I Len
useless 10 strive for that which 1t is not
possible TO obtain. There is a prejudice
against State bank currency, because OF
| the rrouudless fear Of wild cat banks.
and If we ever have banks of issue again
under state. rather than national law.
\ IL must be after further trial of a ma
tiona bank system. We can only nope
now for changes in the present system.
have read with great interest the
| House of Representatives Bill lD. and j
think tho provisions for relieving the
! United states Treasury from the cur
rent REDEMPTION of outstanding demand
| notes will accomplish its purpose. The
| amendment proposed. naming conditions
upon which state banks may be exempt
/ from Che 10 per cent. tax would ] thlnk.
/ prove acceptable % state banks. ana so
! increase their profit as 10 multiply ihcm
/ I'm the south and meet. 10 very cons.d-
cradle extent. the demand for banking
capital
THE REMEDY SUGGESTED.
In conclusion. / VIII call the attention
Of the committee TO the following sug-
gcstons:
J. Release the holders Of national bank
stock from liability beyond the loss OF
their stock. The stakeholder can only
participate i'm the election Of officers 10
manage the bank lie is powerless there
l Ia. 4.fI la UI
we're an account. as the law now eXacts
The capitalist hcsitates to take such a
risk. and only takes il when the banks
urOGt is or promises to be- very large.
and that occurs only IN densely populated
/ communities or where the people are
taxed Boy % very high rate of interest as
is the case now at the South. II that
liability could bee removed one of the
impcdimouts TO the establishment of
banks in the South by Northern capt.
talists would Doe OH of the way.
O. Exempt bank stock i'm the hands Of
individuals from State taxes. The tax
on national bank stock Is now pretty
generally paid by the banks. 10 relieve the
individual stakeholder. but the dividend
TO the individual holder is lessaned TO
that extent. Everything that can he done
to make banking profitable should Doe
done. iD order TO promote Che establish
meut OF banks Wherever needed.
s. Prohibit the payment Of interest by
q national bank m any State on money
deposited for account Of % bank m am
other state The New York banks allow
interest ON deposits by country tILks.
though the money Is subject 20 check
without notice This the New Yori, hanks
can do, because of the Gust ON or loaning
money on call I'm New York. . his pay
mont Of interest 20 country banks s-ould
not be allowed: for 80 civcrts money from
home channels 20 swell the funds a1f ila-
BILE ir New York for speculation IN Wall
street
In considering the provision OF new
banking act. or amendments 10 the pres
ont act 7 would urge the committee TO
bear i'm mind tho importance of placing
as few restrictions as possible upon the
investment Of capital i'm banking. The
greater induccmont offered i'm the way
of currency issue. and the exemption from
taxation. the lower the rate of interest
cam Doe made and the greater prosperity
assured to- the people.
Tho most striking proof OF tho want of
banking capital in the South since the
war is found i'm the rate of interest say
from 10 j. per cent. prevailing now. and
THAT has continuously prevailed since tho
,loso of the war. \ reduction I'm the
ratio of interest would he "a great boon
TO tho agricultural South. for after all
money is the greatest fertilizer.
QUESTIONS AND ANSWERS.
Mr. Regarding your third sug
oeation. I would like 10 cali your attcn-
lion TO the fact that one of the Circuit
courts has denied the legality of bank
40 allow interest on the deposits Of an