5 02 THE POPULAR SCIENCE MONTHLY. 



celing the bank circulation. If, later, need should arise for a greater 

 volume of currency, arrangements might be devised for increasing the 

 circulation of existing banks or creating new ones. Obviously, the 

 banks themselves should, in such event, have a voice in determining 

 the methods by which this should be done, and in the selection of the 

 persons or corporations to whom the right of issue should be extended. 

 Similarly, in regard to examinations ; thoroughness should be assured, 

 nor need this be difficult. When the banks of a clearing-house are 

 called upon to care for some embarrassed member, a brief inspection 

 enables them correctly to determine the real condition of the appli- 

 cant ; they have a direct interest in getting at the facts. Examin- 

 ers should be chosen, or at least nominated, by the banks. 



The bureau which supervises the other operations of the banks 

 could, with but little addition of labor or responsibility, conduct the 

 redemption of the notes of insolvent banks, and levy and collect what- 

 ever assessments might be needed to make good deficiencies. 



But it is needless to enter into an elaboration of details ; they 

 would present no serious difficulties when, if ever, it became necessary 

 to deal with them. 



It may be said of any suggestions in this connection, that, what- 

 ever opinion may be held of their worth, they are not premature, nor 

 without value, if they provoke the attention of men who are able to 

 do better thinking. The occasional desertion of national banks to the 

 ranks of state institutions, and the contemplated separation of others, 

 as well as the prospect of enforced relinquishment of circulation by 

 all, indicate, plainly enough, that it is none too soon to consider some 

 modification of the national banking system, if it is to be maintained, 

 and it has worked too well to be needlessly abandoned. 



It would probably be assuming too much to expect that any system 

 of bank issues without special security, however surrounded by safe- 

 guards, would find present favor with our national legislators, or in- 

 deed secure many adherents. A few years ago, some of our ablest 

 financiers, both in and out of Congress, predicted that free banking 

 would follow swift upon the resumption of specie payments ; but pres- 

 ent indications do not point that way. More crude and less scientific 

 expedients are likely first to be tried and to fail. But it seems not 

 over-presumptuous to predict that ultimately resort will be had to 

 some form of that system. Its convenience and economy are obvious, 

 and will assert themselves. The evils which it involves are such, and 

 such only, as are inherent in the general conduct of business, such as 

 will inhere so long as honesty and mutual confidence are imperfect ; 

 as these improve, the risks will lessen. While the causes exist, the 

 losses will fall ; there can be no perfect safeguards, nor of such as are 

 possible can a paternal government afford the best : they must be 

 looked for at the hands of the people themselves. 



