The times. [volume] (Richmond, Va.) 1890-1903, 1897-07-17

The Times has received Inc AO'o""s
letter:
Editor of The Times:
Sr.-I am constant reader OF
The Times. and admire its straight
forward conduct, even when at variance
with certain of its propositions, especially
in the matter of silver money.
/ desire to ask what would be the rem
edv for the inevitable bank trust when
private banks of issue are restored as
they nourlshed in the ten or twenty
years before the late war? Would not
the private banks of issue in the cities
of Virginia or Alabama suppress the VII
lage banks in the rural regions along the
same general lines that lead to the power
of the Sugar Trust?
Consideration OF this question becomes
interesting and important, because II
there appears to be no valid argument TO
sustain apprehension of the private Dank
of issue trust, the money of such banks,
founded on proper security, would re-
turn TO us to be the safest in supply, anu
on general principles. the most desirable
that the law can provide.
1t is not sufficient to answer that in the
day of the private bank Of issue there
was no bank trust to control he volume
and circulation of its notes, but naturai
demand fixed the supply. The question
known then, are powerful now TO create
the trust in all great subdivisions OF
commerce, attach to the private banks
of issue with equal certainty. Can this
one private institution be pronounced
safe from the fate Of almo3. all incorpo-
cate enterprises. .hs fate OF the trust?
If the private bank cf issue can be
maintained on its merits. 1t Will inevita-
bly, drive out the national bank OF issue
More than that. or 1 necessary sequence
It will destroy all trusts dependent on
great aggregation Of money in certain
commercial centres. New York sells less
than half million bales Of spot cotton
but New York CANDLES upon fictitious
sales Of 4j.C00000 bales. future cotton.
New York banks prefer the gambling oc-
cupatiOn for their surplus cash. SO that
il becomes essential TO currency reform
by means of private banks Of issue. un-
der State charters. that these very insti-
tutions shall not, under the guise Of the
bank trust. continue TO play into the
hands of the New York bank feeders of
the futures or speculative markets. The
country Rad far better dispense with the
most natural and legitimate OF all cur
rency, the currency that is based upon
local credits and local values, than TO
see these local credits and local values
prostituted 10 the uses OF Wall street
gambling.
I hope 7 do not ask too much OF you
IN soliciting the calculation OF this prob
lem.
JOHN WITHERSPOON DTT BOSE.
Birmingham, Ala. July Q, 1897.
We think our correspondents appre-
tensions wholly groundless The combi-
nations Of capital and enterprise that we
call trusts have been engendered by the
destructive competition caused by i'm
proved machinery and rapid communica
ton Of bulks and ideas which steam and
electricity have made possible. Men In
any part of the world can know now, in
stantly, what men In any other part
of the world propose TO do. and the
worlds supplies. wherever situated are
instantly available for supplying de-
mands in any quarter. This condition OF
things has brought trade to the Kilkenny
cat state. Traders simply devour each
other. Men have. therefore. been forced
by conditions TO cease competitive trade
and 10 pool their enterprises under agree
ments that the profits shall be divided
out rdtdDIy dNOHSol tioSo III tHo ppoi'
The general idea that this results In the
plundering of the public Is a total mis-
apprehension. The Inevitable tendency Of
such a combination IS towards a cheap
ening of what is dealt in for the reason
that the best profits come from the
cheapest prices that allow reasonable
profit 1t IS more to the enterest Of a
business combination to sell its wares
low than high because 1t makes more
money by selling greater quantities at
small prices than small quantities at
great price.
But why shonld the private banks in
Richmond combine to suppress the pri
waite banks in Farmville or Chatham?
There would be no competition between
them. Richmond's banks would cater
for the Richmond business. and Farm
ville's banks would cater for the Farm
Vile business. Successful banking re-
quires knowledge by the managers OF the
bank Of the people. who are going 10
deal with H. But men living in Richmond
and managing Richmonds banks know
nothing OF the solvency and character
Of the people who dwell near 10 and