The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-15
COLONEL MONROE'S DOCTRINE
of our American banking system. But
shall not discuss 1t except in Its rela-
ton to financial panics.

Of our American banking system. But
I shall not discuss 1t except in Its rela-
ton to financial panics.
"a financial panic Is precipitated by an
attempt on the part of considerable
percentage of bank depositors to with
draw their money. 1t Is disastrous to all
concerned, exactly in proportion to tho
demand made on banking resources. Inc
banks of the country do not pretenu to
have on hand more than one-fifth OF the
amount OF cash represented by the de-
posts. The people have placed IN the
keeping OF the banks more than IS, 600 ,OGO,-
000 every dollar of which Is sup)ct 70
withdrawal on demand. Inasmuch as our
government has never issued more than
lating medium, 1t stands to reason that,
the banks cannot meet concerted de-
mand for all oft If I lend our friend Jen-
kins So and eh invests So OF 1t In apples ana
retains 81 as working capital he cannot
repay me the entire amount of his indebt-
edness the moment | ask TOR II. he Is
theoretically solvent and would be all
right If he could sell the apples, but the
instant ! demand my money the apple
eating public becomes suspicious about
those apples. Since Jenkins has nothing
but the So and the apples, must permit
him to go into bankruptcy and take
chances Of his realizing as much as ne
u I
der such circumstances and how little
call there Is for them. Banking opera
tions arc much more complicated than
this deal between Jenkins and myselr,
but tho principle is the same. Inc ap-
pes-the securities are splendld oitset
against deposits until 1t suddenly becomes
necessary to realize on them. Then they
are likely to rot before they can be sod.
This can happen with perfectly honest
bankers, who have invested In the best
apples In the market.
.But we have developed another system
OF banltIng-a system not many SHADES
removed from robbery. These bankers In
vest the deposit money paid over the'r
counters In stocks and alleged securities
which they know to be worthless, they
have issued or cause these bogus stocns
to BIO issued. They have put the deposit
tors money in their pockets and placed
against II these bits OF paper when never
had. nor never by any possibility can
have, real value. This Is not the Klno OF
banking done here In Lincolnville, and
am not making any reflections ON you.
Friend Sawyer, but you know little OF
the ways Of the new high finance. But
a time must come when these barrels OF
wormy and rotten apples must be dumped
into the street.
"It Is the smell of this decayed fruit
which has caused runs on banks and re-
suited III SeVeTll IdAAuiSo' <AAAAASSN ''ANN'
out exception, there Is reason for a suspi-
clon of banking dishonesty. we, there
fore. witness local financial Panlcs, 1t is
the same sort Of panic which !mpels tho
housekeeper to double bolt his doors
against burglars. 1t Is the fear OF those
who have good reason to think they are
being robbed, It Is impossible to predict
where this will end Charges OF down
right swindling have been publicly made
against bankers and hnanciers whose
standing has been SO high as would seem
TO make them almost above suspicion
ut Is about time that the American
people took one good hard look at their
banking system. The man who desires to
engage in business; the man who desires
to protect his property interests; the
working man or woman who Is ambitious
to save II few dollars against a rainy
day-all these and others are forced 10
deposit their money in institutions when
are likely to fail honestly the moment
when subjected to pressure OF liauidation,
or to be plundered by those at their head.
Ours Is the only civilized country IN the
world which denies to It's citizens saie
depository for their money, We have been
taught TO believe It patriotic and praise-
worthy to have mora faith IN private
banks than in our national government:
The demand has been madss aaa " s1'A