Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-08-19
BANKING REFORM.
New York Evening Post.

New York Evening Post.
In the latest publication Of the Gold
Standard Defence Association OF Great
Britain, Mr.. q. Il. Walker of Toronto
discusses the banking system Of Canada
and incidentally that Of the United
States. The paper is only an eight.
page eatlet, yet 1t embodies all that ia
neediul to Mr.. Walkers purpose, which
party in Canada, and 10 agitation for
free coinage and "cheap money. = The
reason IL very simple one. Canada
has good banking system. The loan
able capital of the country, and its loan
able credit he the same more or less,
are equally available in oil parts of the
Dominion at all times. There is no
surfeit at the commercial centres and
simultaneous scarcity at the small
towns. That phenomenon is avoided by
the system of branch banking which
prevails in Canada, whereby the re-
serves of the banks are made avail
able at all points where branches exist,
just as the water in reservoir finds
It's way TO all the pipes and small tanks
connected with it. 1.-The agitation in
the United States in favor of the un
limited coinage Of silver" says Mr..
Walker, lis simply the 'orm in which
the discomfort with existing conditions
is expressed by those who do not
understand currency and banking
| problems. -
Mr.. Walker has here told truth,
but there il something more TO DO said
about the agitation. 1t is largely
bottomed on the collapse of speculation
which took place IN the years immedi-
| atey following the Barring panic in Lon
| don This took Mace in 1880. 1t dis
turbed the whole financial world. 1t
shook the fabric of iutlstHd values in
South America, Australia and the
| United States 1t brought on liquida-
tons in all those countries as well as
| in England II happened to coincide
with fatal step in the United States
the Sherman act OF 1890. That Ill.
starred measure was passed, not TO
make money plenty there was no
scarcity of money thrn--hut 10 insure
the passage Of the Mckinley tariff. 1t
was one Of the political dndges' OF
which our financial legislation during
| tine past 20 years presents many in
stances. it was perhaps the worst of all
| of them. 1t came at tilnu ol all others
when careful conservative action was
nreded. 1T created ulstruRt among
| capitalists at home ana abroad, and it
played into the hands of the speCu.
latUrs, enabling them to float more Sc.
! curities and sell more town lots on tine
prairies, on which the purchasers made
only the first payment, about enough to
defray the cost of surveying aud "stRk.
ing OUT the phantom cities. 1t prom
ised more money, hut il really made
less, since it sent gold out of the
country and filed the circulation with
new kind Of mnonshine currency that
all men Of sense distrusted.
The collapse Of 1888 was the conse-
quenCe. When it came tho specula-
tors Of all degrees said that there was
not money enough, and the dema-
gogues touk their cue from that text.
There was not money enough for them
ami there never could bo enough, bp-
cause their schemes required more and
more in evsr-increasing volume. The
only safety was IN stopping tho source
OF imitation. Tho country recognized
that fact ard applied the only possible
remedy the unconditional rapeRl Of the
Sherman net. The card house of specu-
laton was bound TO fall. ii hau really
fallen before the net was Tepeaed, but.
as in all such cases. tho specnlatorB de
uded themselves with the belief that
the trouble was a lack OF money. SO
they took up the ree.coinage issue.
Tle demagogun politicians caught
on and tue campaign Of 1896 followed.
While it is true, therefore, as Mr.
Walker snys, that the demand for free
silver is an expression of discomfort
with existing conditions of barking
and currency, that is not the whole
truth 1t is true, however, that the
lack Of facilities such as exist ID
Canada, in Scotland, and in most
countries of Europe for the prompt
distribution of banking capital and
banging credit mas Boon, AMI still
is, an aggravating circumstance. II Is
true also. We think, that il our banking
system were assimlatod to those ui
Canada and Scotland tho free.conago
men would not have much ground 10
stand on. TheY ara lusing grnund pretty
last now; they would COLLAPSE com
pletely if the mobility OF capital and
credit were as we'll provided for among
, us MS it is among our neighbors on the
north. This mobility is secured in two
ways; first, by the branch banks, and
second, by the issue OF notes against