Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-01-18
SAFE BANKS.

The old definitions of a bank given
by Webster in his unabridged dictlon-
airy were as follows:
"By. analogy, q collection or stock of
moneN./deposited by number of per-
aggregate of particulars, or n fund. or
to establish n bank, that is, q joint
| fund
The place where a collection of
money is deposited; common reposi-
tory of the money of individuals, or of
companies; also, q house used for a
bank
a company of persons concerned In
bank, whether a private association
or an incorporated company; the stock
holders of q bank. or their representa-
porate capacity"
That IS all; and in none OF these def
nitions is there a hint that the making
and issuing of paper money, or prom
lssory notes, is any essential part OF a
bank. or its business.
Chambers Encyclopaedia, in defining
bank" and banking" says:
"A banker lends money at interest,
usually for short periods on satisfac-
tory security, and receives money on
deposit, for which he sometimes allows
interest. and sometimes does not, but
merely keeps 1T safely for the depositor.
Some banks-notably the bank Of Am
sterdam, which. during the 18th CEN
tllry was the great warehouse for bull
lion in Europe-were simply custodians
of coin and bullion lodged with them,
for which they granted receipts trans
fcrrable from hand to hand. emitting
me owners to get hack the gold or
silver. in coin or bullion as originally
deposited"
After noting the recent changes in.
banking. the encyclopaedia goes on to
say:
"a banker receives from all
around the sums OF money. small
or great, which would otherwise
be useless in the Golfers of the owners.
and lends it to those who can employ
it to advantage and could not other
wise obtain it. But n banker
deals not only with the money of 9th
ers; he uses money belonging to him
self. This is his capital"
Banks of issue are noticed but al
ways as being governmental, quasi
governmental institutions. invested
with the power of issuing notes of Cir
culation as n special privilege, for
which special safeguards were re-
quired: the issues being limited and
reserve funds in coin being necessary
to cover the issues in circulation. But
1t is obvious that the power or privilege
of issuing notes of circulation was
neither an original or necessary part
OF the banking business: which was to
bank" money on deposit for safe
keeping; to lend money on good Sc
curity; to collect remit and exchange
money. To make and issue money
were no parts OF such business, these
being the exclusive sovereign preroga-
'tives OF government, and when granted,
1t was as special privileges under strict
conditions. and detcrminable at the will
OF government The Importance and
value OF money in modern times have
taught men and nations by reason and
experience that it should be made.
whether Of metal or paper. only by
the highest authority-and that this IS
really far more essential in any stable
government than the kind or the ma
ter1al OF money. The examples fur
nished by our so-called National Banks.
with ali the safeguards required by
positive law, supply the fullest proof
that MS banks OF original issue. AT
WILL. they would be sure to bankrupt
4 nn
cially with colluslve examiners and
comptrollers.
Banks. in their proper sphere are
very useful and desirable; but they
become dangerous, and are sure to be
injurious. as soon rs they exceed that
sphere. No person nor paper can be
justly charged with animosity to banks
because M OF IT urges That they shall
be restricted within bounds that rea-
son and experience alike teach us are
best for them and for the public,-and
no wise government, no prudent people.
VIII permit them to go beyond such
bounds, as no honest and experienced
banker. with his knowledge of the on
portunities and temptations that bcset
bank officials in such case, should wish
them to do so. There is safe banking
and unsafe, and that banking is always
unsafe to bank and people which ven
lures beyond the limits of what is the
legitimate and necessary business of
banking-which is not to make or Issue
money.