The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-31

teaching, get our people to proper think
ing on the money question. And this
ought always TO be our text; our con-
tracts ought TO be clear and explicit, anr
securities ought TO be full Of actual val
ue, and ought to be abundant. Our
dollars always to mean dollars, clean
100 cents. Every banker ought to have
a clear and distinct understanding OF
what is meant by money standard. We
cannot be successful teachers unless We
thoroughly understand the subject to be
taught
The country banker must, in many
cases, be indulgent and forbearing, even
beyond what might be considered sound
in theory. Many times in our expert
ences if we had insisted on the exact
fulfiliment of the contract our custo-
mers would have been forced TO TIE
wall, his property dfssipated and our
debt not collected. But with little for
bearance>and yielding Of the exact con-
ditions Of the contract good man has
been saved and every d0llarof the debt
collected, and we have cemeted TO US a
valuable friend. In many cases, espe-
cially during the past ten years, the
country banker has been compelled To
put his qneart in mis- business as well as
his judgment. While think this idea
may be carried too far, and sometimes
cause us 10 suffer loss, l do not think
the iron clad rule given by eminent au-
thority can be always successfully ap-
piled.
- g. in
diligence should be encouraged. Fa-
vor and benevolence are not the attri-
butes of good banking. Strict justice
and the rigid performance Of contracts
are its proper foundation"
This is sound in theory, but we find
that We cannot put our theories, how
ever good, always in practice. Some ~
our own best and most favorable custo-
mers have been saved to our bank and
our community by taking care Of them
and being lenient and forbearing during
trying times. The bank is the heart OF
the business world, and it should be so
managed that the purest blood Should
be sent drought every business vein.
The pulse beat should be regular and
strong, and thus a healthy business
body will be sustained. / fear we do not
full appreciate the Importance of the
business teaching OF the bank, else some
of our deals for present gain, but flu
ture embarrassment, and sometimes
ruin, would not be made. No more ruin
Gus is some habit of the vicious man to
himself than some of the business theo-
ries of some Of our customers, that the
prudent banker might, If ne would, nip
In the bud.
THE CANADIAN BANKING SYSTEM
Paper by j. NJ Harper. OF Conway
Springs.
went into effect July 1, 1891. The i'm
mediate cause for the passing of this act
was the necessity for rechartering the
provincial banks, but the real cause was
the awakening interest on the subject Of
currehcy reform, the demand for safe
and elastic currency which should ex-
pand and contract with the ebb and flow
Of business. And 1t may be a matter OF
interest to note that when the provin-
ciaI parliament was considering the mat
ter the discussion was marked by no
party strife or factional hate; that the
government called a conference of the
principal financiers and bankers of the
Dominion 10 assist in formulating plan
which should be both eqult9pl and just,
and although the recommendations OF
this body were in no sense binding, its
suggestions were generally adopted. and
il was to this body that the elastic fea-
ture of the currency is due. 1t may we'll
be said that this act became the law OF
the land as the result Of we'll informed
judgment based upon diHgent and
careful study of the facts.
The salient features Of this system are
First. Every bank must nave cash cap
ltal OF $500, 900; that each bank is bank
Of issue to the extent Of its paid capital,
and that its circula ting notes are not
taxed
Second. The circulation is secured by
a first lien on the assets of the bank to-
gether with a double liability Of it's
stockholders. And in addition thereto
by a redemption fund consisting of 5
per cent Of the average yearly circulation
of each bank. Each bank is required TO
of the dominion for the redemption if its
circulating notes.
Third-Each bank has the right to es-
taulish branch banks throughout the
province
Fourth-An elastic system OF currency
by which a bank can increase or decrease
its circulating notes in accordance with
the wants and emergencies of business.
OF these principal points in connection
with the system two deserve special
mention, namely, its system of branch
banks and the elastic nature OF its cur
rency.
The advantages of the branch bank
system over the free Banking system are.
first, The branch bank system furnishes
a better opportunity for the distribution
OF loanable capital BY this means a
branch bank on the frontier in Victoria
is placed in direct connection with the
idle money OF Montreal or Toronto, and
as a resul. she difference in the rate OF
interest in the two places is not even 2
per cent per annun. A second advant-
age is that it permits shrdlu-fetaoinn
age Is that il prevents many from going
to places needed in times OF panic and
thus permits rapid withdrawal from
circulation OF loanaole funds
The chief point Of this system and the
one for which * is favorsbly known IS
the elasticity OF lie currency And this
il the question OF tne hour in our own
country 1t Will be prominent feature
in the presidents forthcoming message.
Why we have not had legislation along