Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-12-20
BY JOHN T. MORGAN.


Liverpool and London, through the
financial power of the Bank of Eng
land, have for more than two centuries
furnished the capital, or credit, that
is essential to carry our export crops
and productions after they are shipped,
until they can reach their ultimate des-
tination--the consumer.
In cotton, especially, the sum so re-
CURED has been eqaul to more than
nine-tenths of the entire value of our
crop, until u very recent period and
now 1t is equal to three-ffths OF that
value. 1t is easy to understand that
under these circumstances some meas
ure is necessary to meet and remedy
the condition. l know of no measure
better suited to the need than the bill
passed by the last Senate, e" to carry
INTO effect the recommends lions OF the
International American Congress by
the corporation of an American bank"
Unfortunately, the House did not find
time to read it.
Inc leading purpose of this measure
is to draw capital from American
states that will enable us and them TO
nahule the vast interchangeable pro-
auctions of which commerce consists
without going to the great money CEN
tres across the Atlantic for the capital
to hold them until they are manufact-
ured and the consumers could buy
them.
:, II we could have had such a bank in
the early days of our political indie
penoence. instead of having our produc-
tons priced in Liverpool or London
we would now have complete CONNER
cial independence of those great money
centres.
l Will only state this important mat
ter In order to draw TO 1t reflection and
examination, without now attempting
10 discuss it further than to say that
the oulk of our exchanges when bal
ances are to be paid either way be-
tween us and the islands south of us
are cashed in England
The creation and fostering of lines of
ulrect communication and trade with
those States can be greatly assisted by
this proposed financial agency
On June II, 1898. when this bill pass
Gu the senate, Dewey had virtually de-
ss.royed the power of Spain in the Phil
ipPlhcs' and was expecting Il like re-
suit IN Cuba and Porto Rico, ana
wanted some financial agency through
winch the commercial exchanges be-
tween us and those countries would be
under American control
The results which have followed tho
war with Spain, as they are now fixed
py the treaty of peace, more than ever
demand that we shall establish Ameri-
can control of all financial movements
III tnese islands as fast as possible
consider this the most essential feature
Oh the question of good and permanent
government in those countries
10 accomplish anything in the direc-
tion l have indicated we must either
rely on our thirty-e eight hundred M
tional banks or upon some chartered
International bank. IT is time that we
were independent Of England, at least
III our external financial business.
COMPETITOR NEEDED.
The more than thirty-eight hundred
national banks are as nearly one ma
chine as ii is possible to create by law;
and am afraid TO place the entire con
troi Of our finances in the charge of
the ruling bank i'll that great lnoneyed
ollsarchy. l want some competitor to
Keep their power in check Having
despalred of the removal of Federal
repression from the State banks.
look TO this financial institution as the
next pest plan that is possible for those
who live by creating the products of
the earth. This bank is forbidden to
issue bills TO circulate as money and
cannot, therefore. increase or diminish
the volume of money. and must always
incline strongly TO specie in payment
oil It's commercial paper.
Being International. with agencies in
other countries. and stockholders in va
rlous American States. and branches in
our States. 1t Will draw money from
other countries, and will interest their
people III our commerce. ana at the
same time our people with theirs.
me rates OF interest that can be
charged on loans or discounts must
conform to the laws of the States OF
This Union in which the bank or
branch bank is located. This is dis
tinctly provided in the eighth sub
DIVISION OF section of the bill and
the state courts are given full jurisdic- |
ton OF all suits by or against the cor
poration in section 80 of the act.
LIMITATIONS.
The COrpOro tippe n,1
are required to keep ON hand at All |
times. in lawful money of the United |
states. IL sum equal to % per cent of |
one aSgregate of deposits, by section |
q OF the bill. The United States is
not liable for any debt or obligation of |
the corporation This is by a careful
provision OF section % of the bill and
by section 2i and other sections the |
corporation is put under the inspection |
or me Comptroller of the Currency |
ANA heavy penalties are prescribed for
any neglect of duty or default or NAL
feasance of it's officers 1t is subject
TO the power of the government, like !
the national banks. but it's capital
stock is held by private persons, as is |
also the case in the national banks.
Indeed. the utmost care is taken in |
the Dill to restrain ana limit the pow
ers or the corporation, the officers and
stockholders, so as TO protect depositors
and confine its action to the legitimate
purposes of it's creation.
1t is made liable to taxation by the
States in which it or it's branches are
located, or where it does business.
In section 81 it is provided that the
rights conferred by the act shall not
be exclusive, but a bank may be estab-
lished under its provisions by any citi-
zen of the United States.
cannot review an act Of thirty-three
Sections In the proper limits of this
letter. but can only call attention to