The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-05-13
Tilt,e,, on finance.

Tilden ON Finance.
- One thing at time.'' The State Con-
vssntion "a SO near that il anything is to be
{ done in Virginia for the most available man
those who appreciate his strength must lend
him their assistance in overcoming preiu-
tiices which we caEnot but respect. All
such stories as the one started by the Gin
cinnati Enquirer, charging that TiLDEN was
manufacturing public opinion in his favor,
are tiiscreditable to the originators OF
them, and do not damage their subject.
On the contrary, the pubic Always
resent such imputations as refiection
1 mon themselves. The supposition that
wall street is for T1LpES, though not adj
mittcd by his friends to be anything but a
surmisc. has damaged him somewhat in this
section. We doubt not that the South
would support him cordially If nominated
either upon greenback- OF hard-money-
platform, seeing that the financial question
is not the predominant one with us; but
she may hesitate to aid him in Convention
il she considers his financial creed bad
one. In January last, whilst still opposing
TILpES as candidate for President, we
culled from his then iust-delivered message
to. the New York Legislature some extracts,
OF which we spoke as follows:
"Now, that doesn't seem to be Wall-street
cab. Il is good, sound sense. 1t surprises
MS. and eratities us, and almost leads us TO
siIpDosc that Tilden might after all be pro-
per person to consider as amongst possible
candidates this year for the presidency.
Those extracts VIC shall now reproduce.
We quote:
..Bank.notes, or currency, az they arc
called, are but an insignificant portio NJ OF
the means OF purchase or payment. lne
transactions effected by check, operating TO
transfer bank-deposits, in the Guy OF NV
York amount now in every eight Gays, anu
some wears ago amounted in every i've days,
ia &c jarre sum rs all the legal-tenders and
bonk.notes in the hands OF the people OF the
whole OF the United States. The payments
effected at the London clearinghouse
amount in every two days to rs much as the
whole circulating medium OF the United
Kingdom. The other instruments OF credit
by which business is carried on-such rs
book accounts, notes OF hand, bills OF eX-
change, drafts, checks on bank-deposlt-
are thus many times the volume OF bank
notes."
"On the whole, then, it is demonstrable
that banksnote Or currency, when conVelti-
Bile, have less agency in originating or 1aclll-
tating a general speculation than any other
portion of the vast machinery OF credit OF
which they form so inconsiderable part.
This false theory that they are the master
cause OF prices and fluctuations OF prices,
and that a governmental regulation Of their
volume will avert the tremendous rlclSsl-
tudes in business to which commercial coun-
tries. carving on vast credit transactions,
are periodically subject, was the basis OF the
plan adopted in 1914 Oil the re-chaTter Oh the
Bank Of England. The theory was then
seen by few OF tic best thinkers to be des-
titute of truth. It has since been complete
~ refuted by experience"
There is no theory OF compulsory con-
traction there.
Once more, hear Governor TILDEs:
"The medium OF exchange required is
vastly larger than the accumulation OF the
precious metals; and an increased extension
of credit machinery has become necessary.
Bank-notes OF other circulating credits cost
az much to all save the issuer as nm equal
lalue in coin. They have to be paid Tor by
]who use them.
..If individuals prefer to use coin to even
small proportion Of their ability, or to hold
their savings or reserves in coin; il traders,
commercial companies, and governments in
crease their reserved stocks OF bullion to
even small percentage OF the extension OF
their operations, the absorption would out
run the production OF the precious metals,
taking no account Of the Unsuitable demand
OF the Asiatc nations"
AS we said then we say now: "Every
word true. There is not half enough gold
in the world to serve IS medium OF OK
change. It follows that there cannot be half
enough to redeem in gold whatever is used
rs q medium OF exchange. II there is not
gold enough to serve as money, there cam
not be enough to redeem the paper which
serves as money. Confidence is the only
thing that ever makes paper as good as gold.
Whenever panic comes it is found that the
gold is not to be had. 1t does not exist
We quote Governor T1LDEN again:
"The depreciation OF our legal-tender
Treasury notes is not to be measured by any
orithmetical formula. The law which gov
ems it is the discount for interest until the
probable time Of payment, and for insurance
against risk, as those two elements are esti-
mated by the general Judgment Of investors.
TO create demand for it by receiving it in
Government transactions, or to reduce It's
supply below the demands created by law
from individuals for use rs legal tenders, is
for the Government to make an artificial
market, which operates, so FAR forth, as
practical redemption"
That is to say, il Governor TLDEN knows
the meaning of his own language, il tht
Government would receive its greenback:
at it's custom-houses it would thereby create
"an artificial market" for the grecnbacks
and would thus practically redeem them
So say We.
We quote again.
"a popular error existed that price
would not fall so long Us the volume OF lega
tenders and bank-notes continued undmln
ished. Many made their business calcula
lions on that theory, and are disappointed
and their confidence in their own opinion
unsettled"
No forced contraction in That.
----------------------
Tilden in New York.
PROFESSIONALLY Governor TILDEN has enc
/ mics within his own party in the State Q
New York. lie would be poor candidat