consequence of which the chief posted a strong police force at and near the Times building. About 10 or 11 o'clock in the night the crowd in front of the Dispatch office surged up toward the Times office. When near to it, and plainly intending to make some demonstration against it, the police intervened, and with great difficulty diverted it from the Times building.

It has since been thought by conservative men who learned the temper and feeling of that crowd that if the police had not interfered it would have gutted the Times offices. Mr. Eugene Massie, a mem ber of the bar of the city of Richmond, told Mr. Joseph Bryan and myself that he went into the crowd when the police were endeavoring to divert them from the Times building and heard what they were talking about, and that he believes that if either Mr. Bryan er myself had appeared among them we would have been torn limb from limb.

When baffled at the Times, the crowd surged off to the State executive mansion, which is near by, and gathered about the building, jeering and hooting at the governor of the State, who had been a most positive opponent of the election of Bryan, until many persons thought that the governor was in real danger.

I include as part of this statement the following account of the affair as it appeared on the morning of November 6 in the Richmond Times:

Nipped it in the bud-A preconcerted scheme to attack the Times office foiled by Sergeant Cosby and his men-One of the ringleaders arrested and jailed-More excitement caused by bogus returns-Indignation against their author.

After holding out for two days in the face of the most decided figures, Chairman Jones, who managed the Bryan campaign, late yesterday afternoon came out in a statement to the press giving up the fight and conceding McKinley's election, thus knocking the last prop from under the hopes which ardent Bryanites had based upon his hopeful bulletins.

Before Jones's statement arrived, however, reports emanating from the same unreliable quarter that aroused the citizens of Richmond so needlessly Wednesday night had again gathered together a cheering crowd, which massed itself before the bulletin board and eagerly perused the dispatches as they were posted up. Up to the time that the legitimate noon press ceased coming there were no figures shown tending to alter the result in the slightest. After that hour, however, a dispatch which had been manufactured by somebody was stuck on the board, making the statement that Indiana had gone for Bryan.

CAME BY FREIGHT.

Both of the telegraph companies were questioned by anxious inquirers concлrning this mysterious dispatch, but each denied that the same had come by wire. The presumption is that it was either received by freight or was the work of an enterprising fakir.

Be that as it may, however, it aroused the most intense enthusiasm, although a moment's reflection would have demonstrated to anyone that even if true the general result would not be altered. This remarkable bulletin concluded the side show for several hours, and it was only reopened to put up Mr. Jones's acknowledgment of defeat.

It was thought that this decided evidence of the result of the election would disperse the crowd, and that a little rest would be granted the tired citizens. This was not the case, however, for shortly after dark the crowd again gathered in front of the bulletin board at the corner of Twelfth and Main streets. A barrel was secured and planted in front of Mr. Chris. Evensen's restaurant. One of the crowd mounted the improvised stand and made a lengthy speech, eulogizing Bryan and denouncing his enemies. Parts of his speech were quite inflammatory, and his references to the Times so excited the crowd that they started on a run for the Times office, whether to damage the building or indulge in windy warfare did not appear, for they were met by a squad of stalwart policemen near the corner of Tenth and Main streets and ordered to turn back. The manner of the officers was so decided that the ringleaders were thoroughly subdued and the whole outfit went back to their favorite haunt at Twelfth and Main streets. The manner in which the police quelled the demonstration was but another indication of the efficiency of that department in this city.

SERGEANT COSBY'S GENERALSHIP.

The squad of police was under the charge of Sergt. Junius A. Cosby, of the second district. Sergeant Cosby displayed consummate generalship in dealing with the excited crowd. He formed a line across the street with his force, and then announced to the rioters in determined tones that if the paint even on the Times Building was scratched they would have to walk over his dead body to do it.

Some of those in the crowd made disrespectful remarks concerning the police, but they did not venture to disobey Sergeant Cosby's command not to come any farther. It is most probable that the crowd would have done no more damage than to have made a great many discordant noises, since the majority of them were boys and the rest members of society best described as rag, tag, and bobtail; but the action of the sergeant and his force was none the less timely and commendable.

RINGLEADER ARRESTED.

Soon after the mob had dispersed one of its ringleaders, W. W. Allen, who resides at the corner of Twenty-second and Main streets, came back to the vicinity of the Times office. He was warned by Sergeant Cosby to make himself scarce, but refused to do so, asserting emphatically his right as a citizen of Richmond to go where he pleased. He became so vehement in his assertions that Sergeant Cosby grew weary of him, put him under arrest, and called the patrol wagon. Allen declared, with virtuous indignation, that he had never been in the wagon before. "That makes no difference," said Sergeant Cosby, "this is one of those nights that you will have to ride in the wagon; so get in."

At the second station Allen was charged with being disorderly on the street. The whole demonstration was a preconcerted scheme, arranged early yesterday afternoon, and much damage might have been done but for the prompt steps that were taken. There was widespread indignation in Richmond yesterday among the respectable citizens who were roused from their sleep Wednesday night by the news that Bryan had been been elected and the wild whoops and cheers of the silverites. These citizens dressed hastily and hurried down to the Times office, only to find that there was no ground for the rumor except some visionary statements of Chairman Jones, doctored up in such a way as to appear to show conclusively that free silver had triumphed.

MONEY LOST.

Not only was much personal inconvenience caused by this extraordinary action, but it was learned yesterday that a good deal of money was lost by those who have for years banked upon the accuracy of the source from which the news emanated. A number said yesterday, however, that they had learned a lesson, and would not be similarly taken in again.

Besides the personal inconvenience and loss of money that many experienced, the needless demonstration resulted in seriously disturbing the sick people in various parts of the city, especially those at the hospitals, and there were many complaints from these sources yesterday.

In sharp contrast with the wild rumors bulletined for the truth by others has been the conservative course of the Times. From the first, every figure obtainable has been given with the most impartial accuracy, and the figures to-day show that every statement made has been conservative in the extreme.

The reporter who prepared this account had very little time or opportunity to ascertain the real facts. It has since become general knowledge in the city of Richmond that this account wholly fails to exhibit the true character and animus of the mob. It was not a crowd of boys and riffraff at all. It was such a crowd as usually collects at a newspaper office in exciting times when everyone wants to learn the news. It undoubtedly contained boys and men who might be classed with the riffraff. But it contained many others who are not to be placed in either class. It was a fair representative crowd of such people as go upon the streets in such times.

I have reluctantly brought these facts to the attention of the committee and only after a good deal of deliberation. But they are most important facts and they contain a fair index of a widespread popular feeling. These people cared nothing particularly for free silver. But they feel that existing conditions, in depriving the great body of the

people of all media of exchange, are an outrage to them, and there is a widespread and deep-seated feeling of revolt and resentment at it which the committee should take under consideration.

STATEMENT OF MR. W. L. ROYALL, OF RICHMOND, VA.

Mr. CHAIRMAN AND GENTLEMEN OF THE COMMITTEE: I shall lay down some very radical doctrines this morning, which I am afraid will not meet with your entire approbation; but so convinced am I that I stand on bed rock that I shall boldly state my position and defend it, running the risk of all sneers in its advocacy. The question is one of such preeminent importance that I think it wise not to trust to an extempore address. No light or idle words should be spoken upon it, and I have therefore committed my remarks to writing and will read them to the committee.

[Mr. Royall proceeded to read as follows:]

Mr. Chairman and gentlemen of the committee, the safest plan for securing a correct view of this subject is to get some idea of the conditions which existed in 1860, and compare those conditions with what exists now. I will illustrate with Virginia, because I am perfectly familiar with the conditions there, but what I shall say will prove upon investigation to be pretty much the same all over the South and over a great part of the West.

CONDITION OF VIRGINIA BANKS IN 1860.

Virginia's banks had in 1860, in the way of banking resources, $16,005,156 of capital, $9,812,197 of circulation, against which her banks held $2,943,652 of specie and $7,729,652 of deposits. (See Ex. Doc. 38, Senate, Fifty-second Congress, second session, part 1, p. 99.) Her laws did not require the banks to hold any reserve at all, except that they were not allowed to issue notes in excess of $5 for $1 of specie on hand. Deducting the specie on hand, then, from the circulation, her banks had:

The CHAIRMAN. Do you assume that the banks, because the law did not require any reserve, kept none? Is it not probable that the banks kept the same reserve then as now?

Mr. ROYALL. I have here the reports for the year 1859, and you will find very little reserve beyond that of specie. They kept what prudence and experience required.

Mr. FOWLER. How much did they keep on an average?

Mr. ROYALL. The specie should be counted, and you will find that some banks did not issue $2 to $1 of gold that they held, and others went as high as 8 to 1. The reserve varied.

Mr. FOWLER. The law provided that they should not have more than $5?

Mr. ROYALL. The $5 limit had reference to note issues, not reserve. Some banks issued 5 for 1, and some had 8 for 1 of specie. In other words, it was within the control of sensible men, whose business was managed safely, according to the circumstances of the case. That is

the proposition I am here to contend for. The record will bear me out

in what I say.

Mr. FOWLER. How long had those banks been in operation ?
Mr. ROYALL. From the foundation of the colonies.

grown up with the States.

Mr. FOWLER. And was gradually changed?

The system had

Mr. ROYALL. Yes; it was gradually changed all the time, according to circumstances.

Mr. FOWLER. Have you the record of failures in Virginia for any period?

Mr. ROYALL. No, sir; I have not; but the record was not worth preserving, because there were no failures of importance, and you will be surprised when you learn the facts.

The census of 1860 shows that her population then consisted of 1,047,411 whites and 490,865 negroes, but the negroes were all, except a small fraction, slaves, incapable of making contracts, and they are not, therefore, to be considered in the case. One million of white people then had $30,603,353 of banking capital. What is her condition to-day? The report of the Comptroller of the Currency for 1895 shows that her national banks have

Capital, surplus, and undivided profits ...
Deposits...

Total..

$8, 061, 689

13, 829, 545

21, 891, 234

But the national act requires 15 per cent of the deposits to be held as a reserve, so that when this is taken off, as we took the specie off, in the case of the State banks, they have only $19,816,808.

CONDITIONS IN VIRGINIA TO-DAY.

Now, the census of 1890 shows that Virginia has 1,655,980 inhabitants, and as the negroes are now as capable of contracting as the white people, it results that 1,655,980 people have only $19,816,808 to do business with, as against $30,603,353 that 1,000,000 of people had in 1860. The Virginian of to day naturally sighs for the conditions of the Virginian of 1860.

The CHAIRMAN. What is the per capita to-day?

Mr. ROYALL. It is twelve or thirteen dollars.

Mr. HILL. I thought you left out the national-bank reserve in stating Virginia's present bank resources?

Mr. ROYALL. I did; and my statement includes only the capital, surplus fund, and undivided profits of the national banks. The notes are simply capital in another form, and if you included them it would be double.

Mr. FOWLER. Have you the record to show what the rates of interterest were before the war?

Mr. ROYALL. The legal rate was 6 per cent, the same as now, and the banks are now supposed to follow that, but they do not. They charge high rates-whatever they can get.

Mr. FOWLER. Is the rate higher now ?

Mr. ROYALL. The rate is 6 per cent now, but there are hardly any banks which charge less than 7.

Mr. BROSIUS. What is the State rate of interest?

Mr. ROYALL. Six per cent.

Mr. BROSIUS. Do the national banks charge more?

Mr. ROYALL. I don't want to get our banks into trouble. I have no right to say.

Mr. BROSIUS. I understood you to say so.

Mr. ROYALL. Well, I have paid more. Money is very high now in Virginia.

[Reading:] But when we analyze the case a little more closely, we find the great body of the Virginians-those who live in the countryentitled to make a still more serious complaint.

The following shows the banking resources of the seven cities of importance in Virginia at this time, under the national-bank law, as taken from the report of the Comptroller of the Currency for 1895, the 15 per cent being taken off, to wit:

These seven cities have less than 250,000 inhabitants. We find, then, that 250,000 of the people of the State-those who live in the cities have $14,788,416 of the bank resources, while 1,435,000 of the people-those who live in the country-have only $5,028,392 to do their business with.

These country people in Virginia think that this condition is an outrage upon them. They rightly hold the national-bank act responsible for it, because it is suited only to the commercial centers, and draws everything to them, leaving the country denuded.

Mr. Cox. In taking the seven principal cities and giving their population, in your comparison of capital stock, I think you make an error by taking the aggregate population of the rural districts.

Mr. ROYALL. No, sir; I think not.

Mr. Cox. When you take that population, you seem to throw all the rest of the banks into the country; but there are banks besides those in the seven cities.

The CHAIRMAN. The country people get accommodations in the cities. Mr. ROYALL. I mean to say that a great part of the people have no place where they can get bank accommodations. The banks are chiefly in the cities, and the great body of the people are remote from them. Mr Cox. I wanted to bring that point out.

Mr. ROYALL. Those seven cities have 250,000 inhabitants, and have fifteen millions bank resources, and a million and a half in the rural districts have only five millions bank resources and practically no banks.

[Reading: This feeling of outrage is what caused them to cast the vote they did cast in the recent Presidential election. They are not in love with silver, but they are being strangled, and their action was a gasp for breath.

LACK OF BANKING FACILITIES.

But the case is not stated even yet. There are great districts in Virginia, larger than several of the States of the Union, where there are no banking facilities of any sort whatever. The valley of the James River, from Richmond City to Clifton Forge-more than 300 miles-one of the most fertile valleys in the land, has not a single