The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-17
FRIDAY. DECEMBER II. 1897.
THE ATLANTA BANKERS REsOLU-


The resolutions adopted by the South
ern Bankers Association at Atlanta con-
tain a strange mixture of good sense and
folly. They are perfectly right in all
they say about freedom in banking and
the need of the country people for banks
that can issue their notes upon the Sc
curity of such property as the people of a
locality have. But all through them
there seems an undertone, the key of
which is that the United states Govern
ment must exercise a lsuperintendence
over them, and see to it that the notes,
wherever issued shall be good every
where. They were not content with the
erroneous notion held by so many that
our paper currency should pass at par in
every State of the Union. They see this,
and go one better. They say our paper
currency must be made so good that it
will pass current in every land" That
is what has never happened to any paper
currency whatever. 1t is what will
never happen TO any, and it is not deslr-
able that it ever should happen to any.
What the Southern farmers need. and
what the Western farmers need also. is
freedom TO establish banks in any locality
whatever, with the right TO issue their
notes upon such property as they have,
whether the notes will pass anywhere
else, or whether they will not. That is
of no moment to them. II they will pass
IN that locality they viii serve the pur-
poses of the people who live there, and, II
they serve their purposes. they perform
the whole function OF bank notes
These Southern bankers DO not under
stand the case. They know there Is
something wrong. They feel and see
that. But they have all beer raised up
with the spectacle OF a great and good
government watching over its children
and seeing 10 II that they did not swim
die each other with bogus bank notes un-
Ill they have totally forgotten that II is
no part Of a governments province to
watch over its citizens and protect them
from tho consequences Of bad bargains
They have got to learn this elementary
fact before they win ever be ready to
deal with the currency problem intelli-
gently. and, when they do learn IL they
will also learn that as every man has
got TO make his own bargains for him
self. so the paper currency Of the coun-
try is TO be what each bank chooses to
put out and then those men who want
1t will take Il. and those men who do
not want IT will leave IT alone
These Southern bankers tied them
velves also 20 two other propositions that
Y Is the fashion OF currency reformers to
ndvocato now. They say the notes a
bank puts out must not only be a first
lien upon all the assets OF the bank, but
that the stockholders OF a bank must be
liable for as much as tho face value of
their stock arer the stock itself is paid
Up We very much doubt the wisdom
pf the last OF these propositions. What
the country wants is banks. AS there
are banks there are facilities for doing
business. Every obstruction to banking
should. therefore, be removed. and every
encouragement 10 their establishment
should be given. we do not mean that
bounties or subsidies should be given
20 banks. BY no means; we do not be-
lieve In bounties or subsidies 10 anything
II business cannot live upon its own
resources. II ought TO die. What we
mean IS that burdens or restrictions of
every sort. except just ana uniform taxa
ton. shouId be removed from banking. so
that a bank may grow up wherever there
10 business enough 10 justify one.
Under law imposing double liability
Of stockholders, men Will hesitate about
subscribing to the stock OF q bank II
they are TO be liable for as much more
should the bank fail. A gentleman once
told US that the late Major Ginter told
him he had never subscribed TO the stock
of a national bank. because OF this pro-
vision In the national bank act. 1t Is
enough for the noteholder 10 have the
first lien on the assets OF the bank. and
Il Is enough for the stakeholder TO lose
all his input.
We had perfectly sound banks and a
perfect satisfactory currency before
d war without this double liability pro-