The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-23

millions: and even az to this the bulk OF u re-
mained stationary IN goyerhment Vsnns o
bark reserves How wss all thiS trade e1sS sd
That machinery consisted Of BOOK CREDITS he
tive n merchants. " promissory notes. checks
na aps TO Ss end BY hs
banking agency.
II il NOT my purpose to laud the banker oil
unduly magnify his importance. He Is need
full factor in our Industrial system. 30 also is
tho m erchant and the m Her The motive Of
aetiop f2r each is not the love Of pnilanthr9ny;
are not therefore. the less useful. 1.-THE banker
discharges h,s function honorahly and Justly
cs s; ss ns "s isr HpU and taxes hi. q
may claim APT rec alive prase rom those he
serves; simply this. and nothing more; 49,.
seems to he one e,necnlly important md
necessary IN the multiplied smaller affairs oi
LIE" such as IN" raymsn' o. w"grr , tnI .n r;
isolate points In the interior. aud In the small
retail purchases at thr shops, H.. exrense- OF
travel. 30. The particular credit instrument
the most effective for these purposes PAPER
money or ne'a lie coin Of sma danominat,on.
Fora the arger t,ansaciio ions ot business lie.
IN the matters to which | have Just referred
they are substantially useless
cnc.x u oT sTs nr snrc
Is lack Of unders aiding Of this po,nt II ought
70 to made c.aT Il Is non9la1y fp Ss os,
indeed keep money 10y him. but that Ia
only to meet such demand az may. from I m"
to lime, eS made upon him Tor I'll. debt; 4;
a money dealer he would De ruined by his
AT thu same price. and without charge. He is
really. a dealer in credits and In exchange.
more s%. s he swsps his Us S Ss"ds
i iof lack d pubic knowedss w"ud be Ipce":
. ys ss Ss s Tx The f ca.Sms w,S sy
wi bout secur ". az the case may be. Will In
return the banker gives his customer IN onen
NAV draw his checks or drafts as occasion may
require,
pos" can not he thus served. He desires o.Iay
wages or 20 to the frontier u buy lumber or
cattle r.corn H. Innst have med un Of ex-
They are not vel enough known 10 DO avail.
ab u. In such a case the well-known bankers
notes ~ hand in suitable denomination
IL q stat" II comparative Freedom; has
Suited 70 n its ns'ds The Trac,r" ' Of Hankins
In M natural m evolution IA IL the locomot va
or the steamship. and In IT, relation TO modern
rnrtaht ami aerviceable. Note issuing was a
development OF the natu' o function % n lank.
that function bin 70 make Triyate ere III ci-
What the bank credit docs in a large way
with the aid OF checks and drafts the tank
nOe uocs VI u smhlitr out eVuhlly Unnecessary
way.
have said cIncernine banking and currency
has heep tending. That question IL this: How
far shall the rover OF the law limit or inhitit
what we have now seen to DO powerful
natural agency evolved through the outwork-
ings Of the industrial and trade relationships
OF men to, each other; Tho circulating
notes Issued by the bankers should be
protect the note dealer from loss tpon this
point do not want to he misunderstood. Am
pie safeguards Tor the protection Of the holders
OF such notes must lie provided. Whether such
safeguards should consist OF specific security
with the Government In trust, as
now required. or whether they should be fur
ninhed In some other adequate form, Ia a lues-
ton OF expediency. Cer'ain II Ia that. under
the present limitations and requirements Of
and incapable OF properly meeting the public
requirement.
Many have been led to believe that the is
sue ~ circulating notes by national hanks Ia a
monopolized privilege. from which they derive
enormous profit. The facts NAV bp briefly pre-
seuted and they best reiute the common error.
Cnder the most favorable circumstances.
he profits now dervable from this source
10 bank with capita. sny. OF 500. 900. using
rss than S2H5 rer annum, where tn" loaning
ate for money Is per cent. per annum.
Where the rate Of interest Ia u per cent. the
-esult Ia n loss OF SHS per annum. Whore the
ate q interest is x per cent. the annual loss
"Do not these results sufficiently account for
he fact that bank-note circulation has grad
laly diminished In volume. while the general
needs OF the country have steadily grown"