The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-22


read in its entirety
In many particulars we agree with
him. To our mind, however, the
evils of the creation Of bank
ing credit have never been sci
entifically Investigated, or even
limited at We have been so dazzled
by it's tremendous efficacy in develop
ing commerce and increasing wealth,
that we have been blinded to the in
evitable corollary of alternating periods
of prosperity and depression, and to
the frightful mortality, both business
and financial, of which this expanded
credit is the producing cause. We
should, therefore, in entering upon a
general investigation of this subject,
approach the matter of credit from
very different point of view. This dis
cussion, however, is not a profitable
one, inasmuch as the credit system is
bred in the bone of modern business
life, and we must make the best of it.
Neither shall we stop to handy words
over the wisdom or folly of the policy
Of Andrew Jackson in preventing the
rechartering of the Bank of the United
States. The thing is done, there were
not wanting excellent reasons for it at
the time, and it cannot be undone.
The subtreasury system is an unqual-
flied and uncompensated evil, which, to-
gether with our heterogeneous cur
rency, sufficiently accounts for our
greatest financial misfortunes. There
is, however, no essential and last
ing connection between the destruc-
ton of this system and the creation of
a national bank. With a decent sys-
tenn of taxation AID proper finance, the
federal government could be run upon
so small a working balance that,
neither when revenue ran high or low,
would it disturb trade. Given a ra-
tional currency system and an equally
rational system of taxation and rev.
enue, and the subtreasury could be
wiped out with little difficulty. AS
long as we are upon the credit sys-
tenn, the consolidation of financial in
situations, for mutual protection and
for mutual assistance, seems to be
desirable thing. That consolidation,
however, will probably have to come
about by the evolutionary process. It
is not without it's significance that the
national banks of the great powers
which have them grew naturally, in
conformity with the genius of peoples
and institutions; while in the United
States a different order was followed.
Our banking system, faulty as it is,
and still in a state of crude expert
ment, is capable, we believe, of a real
adaptation to the needs of the coun-
try, when those who are in control of
it shall feel the sharp spur of neces-
sity that drives men to progress
AS for the recreation of a national
bank of the United States, the propo-
sition loses interest from its very i'm
practicability. We might array some
excellent reasons against it in opposi-
ton to those furnished in it's behalf,
but the simple fact is that, with pub
lie opinion what it is today, the re-
establishment of a federal national
bank is scarcely more probable than
the establishment of a monarchy.
We do not need to inquire whether this
is reasonable or the contrary, whether
1t is common sense or prejudice; it is
enough, in discussing practical affairs,
that it exists. The hoped-for solidarity
Of banking interests-out of which We
may expect security, facility in ex-
change, and, above all, vastly multi
piled and well-nigh impregnable credit
will spring, by the evolutionary
method, from some adjustment among
the banks themselves The idea is in
the germ and is already incubating. The
plans that were put forward a short
time ago, having this end in view, the
so-called Baltimore plan" the plan of
Secretary Carlisle and the various
others suggested through the press and
at meetings of bank associations. all
indicate a concentration Of thought
upon this subject that will eventually
bring forth results.
Not, we believe, by the erection Of
great banking institution. with IFS
difficulty of adjustment to a govern
ment like ours, with it's dangers and
the lmpossibility of reconciling it TO
public favor, but by a more or less
complete and harmonious cooperation
between the banks, based upon mu-,
| tuality of interest and established guar
antees of solvency and security for
note-holders, will the American system
be evolved. We need it enough.
heaven knows Words could hardly
paint the 'absurdity and the AL
most incompatible loss of our
present financial machine. We
need better and will have
it. The probability appears to us that
it will rise naturally, out of existing
banking business and banking instftu-
tons, by combination, adjustment and
strict legal regulation. To the bring
ing about of this, Mr.. Stickney's
thoughtful paper will contribute indi-
rectly. AS to the feasibility of con-
forming our banking system and the
relation between it and the government
to that existing in countries Of the old
world, the discussion aDpears to us in