The times. [volume] (Richmond, Va.) 1890-1903, 1897-09-01

IL
state banks TO issue the currency Of the
country that the constitutions Of some
OF the States forbid such issues, and II
II we're permitted we should have some
OF the States issuing and others denied
the privilege. which would be repugnant
to that equality OF right amongst the
States which is ESSENTIAL to harmonious
relations i'm the Union. The obvious answer
to this Is that the States whose constitu-
dions contain this inhibition could very
speedily amend their constitutions, and
thus qualify themselves to get the same
advantages that their sister States would
have. But there need be no inconvenience
anywhere for a single moment.
The advocates of state banks care moth
Ing for the source from which the char
tiers OF their banks proceed. What they
seek is the principle of free banking, and
II that principle is conceded, II is nothing
TO them whether the banks are called ma
tionaI banks or State banks. and whether
their charters proceed from an act OF Con-
gress or from a state Legislature. What
they want is that any men who choose
TO form themselves into corporation to
do n banking business shall be at liberty
TO do so without restraint. that they shall
be at liberty to issue their notes redeem
able in gold coin without restraint, and
that they shall be at liberty TO set up
branches Of the parent bank anywhere in
the State Of the parent bank that suits
them. SO that these privileges are con-
coded and that the managers of the bank
may issue as many notes as they please
upon the credit Of the banks assets with
out being required to put up United States
or any other kind of bonds as security for
the notes. it is a matter of absolute in
difference TO the advocates OF free bank
ing whether their charters come from
an act Of Congress or from an act Of a
State Legislature.
They are perfectly willing too, that the
United States Government shall exercise
any sort Of supervision over the banks
that II chooses. 1t may have a bank
examiner for each bank, and keep him
always i'm the bank to watch and inspect
every transaction that IS had. Give MS
free banking, and we will concede you
anything you may ask as safeguards in
I'm the way Of examinations and inspec-
lions.
The whole matter would, therefore, be
settled. and we should have a perfect
currency If Congress would only amend
the national bank act so as to allow any
five or more citizens. on signing articles
of agreement and depositing their articles
with the clerk of the Circuit Court Of the
United States, 10 become a corporation
entitled to exercise all the functions OF
bank with the right TO establish as many
branches as It pleased. but subject TO the
inspection of the United States bank ex-
aminers.
We heard a Richmond manufacturer dis
cussing this general subject day or so
back. and he said he could not consent
to a currency system that supplied notes
that were not at par in every quarter of
the Union. lie said he sent goods to Min
nesota. and ne could not reconcile himself
to having TO take bank notes for them
which would be at Il discount here when
ne got his money home.
This gentleman had not reflected
upon the nature Of his transac-
tons, or he would not have expressed
purchase price is payable in dollars. Now
under the currency system that we advo-
cate there would be but one dollar, which
would be the gold dollar containing 1922
grains OF pure gold. The man who
bought his goods could not, therefore, pay
him with bank notes. He would have to
pay him gold dollars. Now, OF course. our
manufacturer could take something else
IL ne chose to do so, and, in point of fact,
he would take something else. lie would
take his customers check, just as he does
now. He would then, as now, take most
probably exchange on New York, and
his pavment would be made, not in dollars
OF any kind, but by an exchange Of credits
that represented commodities exchanged
between different localities. He would
have nothing to do. therefore, with Min
nesota bank notes They would be used
by the people of Minnesota who knew the
credit of the banks that issued them and
they would pay all Of their obligations 10
people living in other States by exchange
upon the States Of these other people, or
clearing house Of the nation.