The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-16
MIR. BROsIus' BILL.

Some time back Mr.. Brosius Of Penn
sylvania, a member Of the Banking ana
Currency Committee. Of the House Of
Representative, introduced a bill author
izing the establishment OF national banks
with a capital of only $4,000 in GOWNS OF
4eo The Banking and Currency Com
mittee reported this bill favorably and a
day or 20 back. IL passed the House with
little or no opposition.
This shows that the public mind Is
gradually being directed towards the real
source of our financial troubles, but the
measure proposed by Mr. Brosius will
come about as near iffording relief as
dozen Ioaves of bakers bread would come
TO feeding the millions who arc now
Starving in India. Mr.. Brosius bill WILL In
fact, bring no relief whatever. So far as
coacorns the establishing lank II dis
count ard deposit with a capital OF $50
900. that can be done now under state
laws Just as Well as it can be If MI.
brosius bill becomes law. Banks OF
discount and deposit simply, with small
capital, will afford no relief. The peo-
pie have these already. What they want
is banks that can issue their own notes
upon their own assets. and with no other
security for them. 80 that tiey will not
be acceptable to people at distance ana
will. therefore stay amongst the people
of the neighborhood in which they are
issued. That is the thing which the
country people need. and it is the indis-
pensablo thing 20 them. But under Mr.
Rrosius' bill. II his small banks issued
notes they would be secured by govern
ment bonds. they would, therefore, be
as good in New York ana Chicago as
any other notes. and they would. there
fore al go TO those places, leaving the
neighborhoods that issued them as bare
OF media of exchange as they now are.
The case OF the Blacksburs hank. which
Mr. Royal made so much OF In mis- speech
before the Banking and Currency Com
mittee contains the whole lesson OF this
case. In 1860 the Farmers Bank had
branch at Blacksbdrg, which was a vii
Iage- OF q few hundred inhabitants. but
situctcd in superb bluegrass grazing
country. This branch mad q capital Of
svp.C.s. and surplus OF $1,000 and il had
out $1,000 OF its notes. against which
II held $4,000 OF specie. II thus had. capi-
tai. surplus. and notes 90 OF banking
resources. When We look 20 tho other
eide OF the ledger We see that 1t had out
loans to the farmers OF S22i .OoO. Now. its
deposits amounted 10 only SIcOo. This
latter tact is a whole volume in itself
II means that the banks money was
borrowed by the grsziers of Montgomery
county in the banks own notes who, in
stead Of depositng what they borrowed
carried II home in their pockets in the
form Of the banks notes and paid them
out 20 their neighbors, and they circulate
al al around that neighborhood per
forming all the functions of money. as
well as the bes. gold coin In the world
Now. In 1860 the banks OF Virginia
had out s9.co0e0 OF these notes. which
were at discount OF one-quartcr OF
per cent outside OF Virginia. and
which. therefore. all stail IN this State
Our people. consequently. had an album
dance Of as good a circulating medium
as any people ever had. That Blacksburg
case and Virginias case. generally. IN
1850. shows the sort OF banking system
that We need. our apte-war experience
proves that such system Is as safe
as any that can be. and IL shows that
II will give the people perfect content
ment aud Satisfaction. Thc> crucial
point IN this case Is the fact that our
bank currency must be one that is not