The times. [volume] (Richmond, Va.) 1890-1903, 1898-02-24
entitled to credit. FREQ banking Is what

entitled TO credit Free banking Is what
we need"
For many years The Times has been
steadily and regularly pressing this very
point upon public attention as the crux
az all our lis. The farmer can get no
financial accommodations because the
hanks under the National bank system
are all in the cities and their managers
knew othing Of his character or resources
Tho only way he can get accommoda-
lions IS to have his local bank whose
managers know him and know what MS
nromlse 10 them TO return Its money
Is worth. But the capital which can De
occurred FOR n country bank is not suf-
ncient. by itself to earn sufficient revc-
nue. 70 justify bank. It's ehlciehcy
must be increased By permitting the Is
sue Of notes By the bank. Experience
teaches that a country bank can put out
a remarkable proportion OF notes 70 cap
ital because the notes 80 out amongst
the country people who have commence
IN the managers Of the bank and do not
make runs upon them for redemption
This enables a country bank 70 piece out
its small capital with notes and earn
thus a sufficient sum to justify the estao-
lisbrnont Of the bank and at the same
time. TO diminish interest charges The
necessity Of The day is that the cardinal
Democratic principle Of local self gov
eminent which is the cornerstone OF all
good government shall be made to pre-
vail in our financial system.
one Of the most astonishing pieces oil
idlocy Of the day IS the notion that ad-
vocates OF state banks OF issue are favor
able to imitation and cheap money. The
intelligent advocate OF state banks OF
issue will not hear Of State banks
of issue unless their notes are TO
be payable on demand in gold or It's
eonivalent. This IS the sine qua non
with him. He insists that the bank shall
be allowed TO put out just as many notes
as # chooses to put out, but that 1t must
al all times, hold itself ready TO redeem
those notes with gold dollars and If gold
dollars are at any time demanded and
refused the bank is 20 be considered as
any other dishonest institution that is TO
be Hquidatod and wound up. That idea
js lust as much an essential one with
the intelligent advocate of State banks
Of issue as freedom to issue notes is.
They may issue their notes but they
must redeem them always in gold dollars
when gold dollars are called for.
There is a strong prejudice against the
idea Of State banks even amongst them
who most need them and would be most
benefited by the benencent effect Of their
supply Of an abundant currency. Intro
duce the subject where you will and
Won Will hear some well-meaning, but
silly fellow break out with the nonsense
that he has heard passed from lip TO lip
all his life about travelling from here
TO New York and finding when he gets
there that his money is not current. But
how often does he 80 to New York?
How many Virginians travel outside Of
the borders Of Virginia in the course Of
n year? II would be safe to say that
not one I'm thirty does. Twenty-nine
Vireinians then are to be kept always
hare Of ~ medium Of exchange because
one Vireinian may suffer n discount of a
few cents once in year upon twenty
FIVE or thirty dollars. That is the sub
stance of this argument But no Nir-
ginian would really experience the anti
cipated annoyance. When he went 20
New York he would buy his ticket here
with the notes Of our State banks. If
ne were going TO stay in New York only
a day or so ha would carry i'm his pocket
enough gold 20 pay his expenses there.
If he were going TO make a visit there
that required more money than he could
conveniently carry in his pocket as gold,
no would carry n bank check and get
it cashod in New York.
As for the business transactions be
tween the different states, they are not
effected with coin or bank notes. They
are effected by exchange in this day OF
steam and electricity, ana the notes Of
Virginia banks would never be offered in
settlement of a transaction between Yir-
ginia and another State.