El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-08-25
The BANKERS.
A Plea For Better Rural Banking
Facilities.

A Plea For Better Rural Banking
Facilities.
DENVER, Colo, Aug. 25.-The pro-
ceedings of the annual convention OF
the American Bankers association
were continued this morning. Prayer
was offered by Rev. Chancellor w. F.
Mcdowell, president of the Denver
university. Committees on nomina-
tions were appointed and their reports
were made the special order for this
afternoon.
The need of banking facilities in
rural districts was discussed in an in
teresting paper read by William L.
Royal, of Richmond, Va. In the
course of his remarks Mr.. Royal
said:
| "Let no man suppose 1 am an infla-
zionist. l am q single standard gold
man Of the EXTREMIST type. ! would
on demand, or to be instantly put into
liquidation through receivers. The
only trouble my views give me is the
fact that the inflstionists also called for
the repeal of the tax on state bank
notes. But we are as far apart every
where else as the two poles. l want
to give the industrious man an op-
portunity to make use of his resources,
| but under the severest restrictions.
They want to help the cause of cheap
money, and to legislate money into the
| pockets of those who are too lazy to
work for it. l think the possibility of
evil is very greatly exaggerated. Be-
fore the war the notes of state banks
caused trouble, but why? Our steam
al TO
imperfect and when state bank notes
once got into community it was hard
to get them out of it.
''The popular conception OF need
for q currency note that will circulate
all over the country is an utter error.
Who needs such a note? General busi-
ness does not, because general busi-
needs it but the travellers. and they
can protect themselves by carrying
enough gold in their pockets for cur
rent expenses and bank checks on the
cities to which they are going. The
upshot of the business then is that the
} general public would never see or hear
under present conditions, of local
that now have nothing to conduct
their business with, would have all the
media of exchange they need. Because
as the notes of the local banks, though
perfectly good in fact would not be
known away from home, the discount
thus put upon them would send them
home whenever they strayed awav, for
the use of people who appreciate them,
and for whose use they were issued.
This is really the ideal currency sys-
tenn. L do not think 1 have ever seen
any American who was aware of the
fact, but England, Scotland and Ire
land have today exactly the banking
system that 1 contend for. Each island
has local banks scattered all over it
that put out their notes on no security
whRtever but the assets OF the banks
themselves. The notes are at dis
count thirty miles away from the bank
that issued them but they furnish the
people living around those banks with
all abundant and perfect currency.
Great Britain's whole internal econo-
my rests upon those banks.''
In an amusing vein Mr.. William S.
Withsm, of Atlanta, Ca, gave the fol-
lowing advices for the guidance of the
country banker:
''In town Of l, 900 population en-
ploy SIS, 900 capital and that in cash.
For q population of say $500 use $25,
l0O0 Keep out of larger towns il you
want large profits and cOntentment.
Direct all your energies to the protec-
L
third apd last claimant to the assets OF
, the bank. When he is safe, of course
the depositor and all other creditors
are secure.
"Don't borrow money of your own
} bank, for in case you fail it looks and
feels better to owe the other fellow s
bank.
"Pay only small dividends or none
until your surplus equals or exceeds
| to1 "a hvyv
per cent dividends, but we have learn.
ed better.
"Do not permit renewals and exten.
sions of notes. How can you prevent
it?' asks one. AS you are the pion eel
banker in the new town, do not begin
it. Never ask a renewal or extension
of your own payables. You fixed
the due date and signed it-meet it.
"Don't 60 into schemes. Stick tt
t your last or as another has said: Be
hold the postage stamp, how it stickett
to one thing till it gets there A
banker once went in to boom real es
tate. To bis surprise real estate wen1
' down, and his bank went up.
2 "No amount of capital with brains
can take the place of that one qualif
cation 80 essential and widely recog
nized as peculiar to bsnkers-integ
: rity. No bank can live without it,"
q Geo. H. Russell of Detroit was elected
Q president of the association.
The convention will adjourn today
and tomorrow will zee q majority o
the visiting bankers and their families
enjoying a Sightseeing iaunt which il
i. to include visits to Cripple Creek
= Pueblo, Colorado Springs, Msnitou ant
8 Pixies Peak.
MOVING TROOPS.