Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-01-22
NEED MORE CAPITAL.
uroN THIS THE FUTURE OF THE
SOUTH DEFENDS.
BggEING SYSTEM AND THE TREASURY
rhcsc, MIR. Lancaster Thinks, should
&c separated and the Tax on state
Hanks should he RcpeaIcd-lIow
GO Secure Prosperity.


litce on Banking and Currency, took
occasion to say during his recent visit to
richmond. that OF the large number Of
anancicrs who had appeared before his
committee uone had made better i'm
frossion than Mr.. r. a. Lancaster, Of this
City. Mr.. Lancaster addressed the
committee last Saturday morning on the
nm ITO secure TO the people the adj
,antages accruing from the issue Of cir
cglating promissory notes by banks. 10
increase the volume OF such notes. and TO
SUPERVISE and control banks by officers
of the United States" His speech was
SIS follows:
To a Businessman. no subject seems
st this time of such vital importance as
me financial and banking situation Of the
country. The people Of every section Of
fbe country have suffered because OF the
connection between the banking system
and the United States Treasury, ana
with one accord businessmen are calling
,rbe eyils growing out OF the connection
arc SO well understood by you that 81 is
needless TO dwell upon them. II IS gene
-Inv conceded by businessmen that the
.overnmont should no longer remain In
the banking business but should retire
fhcrcfr0m by rcdeeming its demand notes.
1.rf as IL seems not to be possible 10
ohfafn authority 90 sell bonds for that
rlrposc. the national-bank act must be
81 amended as 20 require the banks 10
come 10 the relief Of the government IN
time OF peace. as they dld In time OF war
nm. H. r. bill. No. III. you are now
considering provides for that. j am here
% beg your attention TO the urgent ne
ctssity for other amendments TO me
uational-bank act. which. as you wen
know. became a law during the war be-
81 one sectional least, the SOutn-nas
been the prOhibitory 10 per cent tax or
Sate-bank currency, imposed uhuer lhS
act ns "a war measure. The tax answered
its purpose well in forcing the banks
throughout an the country then under
me United States flag TO adopt the ma
ti0nal-bdnk system IN heu OF the sta.o-
bank system. under which the country
mad prospered. This change was made IN
fre "twinkling OF an eve 50 10 SPEAK
without due consideration as TO now II
would work I'm other respects than IN iur-
,ishiug for the time being market Tor
limited States bonds. IN order TO lessen
Tie issue OF the United States currency.
THE NATIONAL-BANK ACT.
AT the close OF the war the naional-
bank act should have been revised anu
amended But banking under II was
profitable at the North where the money
uowor resided. and the ineVltaple eNns
10 result In time We're not toreseeH. ~
20 the South. the people there had loushI
TO the finish TO exhaustion. 1hey sur
rendered and went TO farming manutac-
turing and merchandising, with such I'M
Elements. tools, merchandise. and cur
rency as they could get. They were
in no condition 10 give much thought
to the national-bank act. or 70 loresee
how the 10 per cent. tax on the state
hank notes would deprive the South OF
an abundance Of banking capital, 50 ne
cessary 10 general prosperity.
Banking under the Aa4ondl-pahk act
was so profitable NJ the North that
northern capital eagerly embraced me
opportunity at the close OF the war 70
establish banks I'm some OF the cues OF
he South. where any 9anhins sys'e bo ME-
gladly welcomed. since the panhs
throughout the South had passed away
with the extinct Confederate Govern
ment Capital from the North however
did not flow 20 the South so apuIu-
antiv as to establish banks wherever
needed. because 10 was soon known 1hat
\bankine was far less profitable mere man
lt the North where deposits often agSie-
fatad ten 10 twenty times the capital
Of the bank; while at the south a nank
deposits rarely amounted 10 dougIe its
capital And in a few years tne 9oN'lnce
.n the premium offered Tor mted sac
bonds caused many OF the banks 10
sell their bonds 9nd retire their cur
rency. thus lessening their ability ia, .ac-
commOdate the people. The establsu-
rrant of the national banks In tse South
was checked too. by the FISK or tse
etockholdar in being held liable FOR double
the amount of his STOCK There was 10
efieb nroGt in banking at the South as
at the North 20 justify any such FISK
Nor has there been such profit IN BANK
irg under the national bank act as 10
multiply banks and anOrd the accom-
mediation so badly needed IN small lOWIS
and agricultural districts. Inc result Is
such "a lack of currency In farming us
tricts throughout the South, that trace
between the farmers and store-keepers Is
done by barter. much 10 the disadvantage
of the farmer, who lives IN state OF
poverty unknown. during the days OIL
slavery, when under the old St3 ' tS..as,
system. with its mother bank and brancn
bank. the farmer was accommodates
with advances against his maturing crop;
and his lands under cultivation were Wen
drained and the country was tar more
healthful than now, that much OF lnS
land rs neglected, and from want OF
drainage. has become malarious.
LESS BANKING CAPITAL HERE.
When the city of Richmond had popu-
latiOn Of not over 4JWV me bd dido tic TIC
~ there amounted TO SlooDwO' Whl,e
now with a population of about lV'vVV'
the aggregate capital OF the banks uve
MOI reach 100000. Consequently the
merchants and manufacturers cannot ue-
r4nd ON obtaining the accommodation
they may want. And the farmers thtoubn-
out the state. however sober. INDUSTRIOUS
ana clear OF debt they may be, cannon -,
0rct the smallest accommodation Aloiii
ID. banks but are subject 10 the chaIees
Of thelr commission merchants Tor any
advance OF money on their matuIlhs
Not only has the farmer been thus DIS
c0graged and agriculture bhghted by the
scarcity OF money, bat the merchants anu
manufacturers even in the cities. must
restrict their business. because OF the ui
certainty Of being accommodated by wv
banks that have but limited resources
and are subject 20 sudden contraction pt
cause OF disturbing conditions GROWING our
Of lmperfections in the national BANK 7yS-
r-m The hard times resulting rom 'ug
scarcity Of money have 50 discpurass-
The people in the rural districts ana mahs
OF the cities that they have been anHloss
f1r many years FOR any change ana IN
recent frightfully large vote IN favor oi
tle free coinage Of silver shows that they
are careless as 10 what the chanse IN
their condition may bring. They peliele
Chat nothing could be worse thah lnVH
present condition.
rency On an the states that gave a ma,
ioritv fra the recent election for Mr.. Bryan
aggregates 100000 less than the anoun'
M currency in the single state OF Massa
ohusetts That Is 20 say. the ZVJ''Vp Vi
nlOulo fn the state of Massachusetts have
B. 10000 more OF currency than the z-.y'1
I0 OF people in the Bryan states ina,
tolls the tale. not that the people IN an
those states wanted free coinage or sN-
YER Those in the Southern states had ~
Interest in silver mines. They wanted
more banking capital TO give them more
olrrency. and they thought II possiDie
flat The free coinage of sHver would IN
some way, though they could not explain
the modus ODerandi. give the relief they
bad been so long waiting for.
MORE CAPITAL OR FREE COINAGE
something. then. must be done speedily
90 furnish a better supply Of banking
capital tc the South. or else the larse
vote given in November last IN the cities
m ihe South for sound money VIII be