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 applicant; they have a direct interest in getting at the facts. Examiners 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 whatever 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, whatever 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 safeguards, would find present favor with our national legislators, or indeed 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 present 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.
