The Washington times., 1912-07-14
IN LOCAL FINANCIAL CIRCLES
BY I. A. FLEMING.

The merchant said he had no extern
sive knowledge of currency systems
ana that he would not undertake TO
pose as an authority on the subject.
do that something is lacking between
the bank and business. AS matters
stand the attitude of the two is almost
antagonistic, the banks seeming to lack
confidence In the business man, and he
In the banks. He thought the opposite
ought to prevail, but he did not know
how II was to be brought about.
The business man said II had been his
experience that when money was most
needed from the banks in the way Of
loans II was hardest to get. He said
he had been importuned to take loans
times when the banks seemed to have
plenty of money. Again, when he really
could make use Of money to the best ad-
vantage, the banks we're slow to respond,
and criticised the security without
money.
The merchant thought that banking
reform ought to proceed to the point
where currency would increase to the
time when II would do most good, and
contract as the pressure should relax.
He had no clear idea how this was to
be brought about, but he thought there
ought to be intelligence enough in Con-
gress to draft laws that would be effec-
tive In the kind Of bank reform re-
quired.
These views of men In different walks
of life indicate one of the great difficult
ties which confronts Congress and the
country in the matter of currency re-
form. There is TO unity of sentiment as
to what ~ really needed, and each man
or group Of men have preconceived no.
tions, more or less selfish in their appli-
cation. Of reforming the currency and
the banks to suit their views.
Probably In time the nations will
evolve a better system of currency,
more easily expanded and contracted as
emergency may require, and II is prob
hedged about, and improved 30 that
they will cease to be instruments in
the hands of designing men to work for
personal rather than public ends.
While we hear much about the con-
centration Of the money power in few
hands and the enormous power exerted
by few financial manipulators, We fail
to appreciate properly the diffusion OF
banking facilities going on for the wider
and better accommodation of the people.
In Washington we have q greater
number of banks than ever before.
has besn started to serve the growing
business interests on Seventh street.
rue, one savings bank was closed re-
Gently as the result of combination. but
| on the whole the number OF such In
stitutions increases rather than dimin-
ishes.
II grows out OF the desire of mer-
| chants and the people to have banks
near by for their convenience. The ar
gument is all the time advanced that
Washington has banks enough, and that
| II more are organized business must
be diverted from those already in ex-
istence which are sufficient to serve
| the public.
In spite of this view the small banks
multiply. like the grocery store and
the neighborhood industry. The people
want the bank near and the answer Is
its establishment, either as a branch
| of huge institution or as a new en-
| terprise.
! What is true OF Washington in this par
ticular is true Of the whole country. In
the month of June twenty-one applica-
tions were made at the office or the Comp
troller OF the Currency for permission to
| start new national banks. During the
same month the department authorized
| fourteen banks to start in business, with
a total capitalization of $545, 900. These
new banks were all small, having an
individual capital of less than $4,000
each.
| These facts show that the diffusion Of
\ banking facilities and accommodations
| Is going on systematically and quite rap
! idly. II may be true that the smaller
banks are feeders to the larger. and
| that the deposits of the country finally
flow into New York to be used by the
| so-called money power, but II Is sure
that SO far as the people and the busi-
ness communities Of the country are
concerned banking facilities are not de-
MED.