Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-05-20
rVsINEsS NERVE.

A contemporary twits the business
men OF the present day for lacking
nerve" 1t says they start at shadows
and too readily take alarm at such incl
dents as Cuban war scares, &c, and to
this is to be attributed, in considerable
degree the failure Of business 10 move
and expand.
our contemporary does not go to the
bottom Of the evil. II it will go back
to first principles or first causes II
will find that there is a good deal to
be said in defence Of the Businessmen
and that what it terms a "lack OF
nerve" is really wise caution.
The primary trouble is in our banking
system. Its operations are such as 10
concentrate the limited currency OF the
country in a few financial centres, and
enable Wall STREET. and those who stand
in with that unsavory quarter to use
war scares as the basis of speculation
In the cutthroat gambling game that foi-
lows. one side or the other in wan
street makes. but commercial credits
are contracted, the general money mar
is doing a legitimate business mas 10
look sharp that he is not squeezed 10
the wall. Not only are the businessmen
in the leading money centres ahected'
hut those in the smaller cities and towns
as well. When in order to accommodate
the spectators, the squeezing process Is
commenced in New York, it is felt by
business throughout the rest of the coun-
try. Hence the businessman VINO Woulu
venture-who would show nerves la
BILE TO have the support necessary TO
make his venture a success knocked from
under him, whenever Wall street ana
its hackers can use a war scare or any
other excitement to manipulate the
money market.
We shall never have business nerve and
permanent business expansion until there
Is mere currency and wider distribu-
ton thereof, and we have banking
system that will perform the functions
of commercial banking. That, aside from
the currency question, the national banks
do not perform that function is demon
strated by nothing more clearly than by
the comparative growth in the numbers
of such banks and other institutions do
ing a banking business. On November
90 1875. the number of state and private
banks. savings and trust companies, and
similar corporations affording banking
accommodation was ASS, and the num-
her of national banks in operation
October !. 1875, was 2,OS7, the latter form
ing about 30 per cent. Of the total on
october 81, 1896, the total number Of ma
tional banks was 1851. and of other in
stitutions engaged in banking $500, the
national banks being about % per cent.
Of the whole. From this it will be seen
that the increase in number of banks
other than national between 1915 and 1896
has been As per cent, and in number of
national banks during the same period -
per cent.
When il is remembered that the ave-
rage loans Of the banking institutions
other than national were $4,000 and that
10 give this accommodation they had to
loan 620 per cent. of their capital against
2o2 per cent. of notwithstanding capital
loaned, the inadequacy Of the national
system TO meet the demands Of business
| in the single matter of accommodation
| Is apparent. The figures we have given
/ are a striking commentary on system
which. aside from operating as at pres
| ent organized to concentrate the cur
rency at a few centres, has to be sup
plemented by $500 auxiliaries, in order TO
keep the business of the country going.
Considering the influences that operate
at times to prevent the national banks
from bearing their share Of the CONNER
cial burden, and the defects in our cur
rency system, it is not surprising that
businessmen are lacking in nerve 10
make ventures. 1t is surprising, however,
! that they do not rise up en- masse in a
movement for banking and currency re-
! form that cannot be resisted.