The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-09-05
A 1;cchHcn5urS Democrat OH the
Money Question. ,."

Editors of the Dispatch: | said IN my
former No. that The banks OF Venice and
Amsterdam were net banks OF discount, but
Of deuosit. The money OF Europe then
consisted entirely OF gold and silver com.
paner-money-i. e., bank paper such as we
now have-had not then been thought OF,
but is an invention OF much later date.
The first OF these banks was established IN
1857 Ga. d.; the other about ~. ID. LOW.
The money OF Europe at the latter date was
in 4 very bad condition. The coins, nav
inc been issued in different countries and
at different dates, were OF different degrees
OF purity and in different states OF deterlo-
ration by wear and tear and by mutlatlon.
The money, even when OF the same denolni-
tons, was not OF uniform value. ~ dra't
drawn for money in one country IN faIor
OF person who purchased 1t IN announcer
might be paid in money nomlnally OF Inc
same amount and value as that paid for IT,,
but really in money less valuable. Hence
the idea arose of bank which should re-
ceiye all these coins at their value by weight,
and give certificates OF deposit for so much
good money, OF better coinage, In which
the nominal and real value were the same.
Hence we can see why a draft on Amster-
dam, not resting Oh the credit OF the bank,
but on good money actually deposited in
it-not bank-note, but check ON
the bank-should be at a premium.
| This, and not the fact that Holland was ere
ditor country, accounts for the high credit OF
the Daper-YiZ.. the acceptanceS or letters OF
credit of the Bank OF AnsterGam-and no
doubt the same was true OF the Bank OF
Venice. But neither OF these furnishes any
supDort for this new national green back
leral-tcnder money. So far as they apply 1T
ali, they serve to condemn it by their differ
inc from it in every essential point. 1t is
very unfair to quote in support OF this new
money the happy results and consequences
of other issues OF papermoneY having no.
thing in common with it but the name, and,
in fact, standing in most significant and Strik-
inc contrast Mr.. Winder has certainly
demonstrated very clearly the incidental,
though certainly not very enyiable, adVan-
tace which debtor country having the bal
ancc of exchange heavily against it derives
from having an inconvertible paper currency
in which gold is 1T an enormous premium. l
remember just after the war hearing that
some OF our tobacco-buyerS were buying
tobacco TO ship to Europe, not so much for
the profit they could make by selling the to-
bacco as by selling the exchange, which was
so high that they could afford even to lose
on the tobacco for the high premium on the
exchange. We have lost that advantage
now, thank God, and suppose nobody
would wish that we should go back to the
wretched condition we were i'll then that we
might enjoy that advantage. [Our CORE
spondent is mistaken. The Richmond wing
wishes to return to that very condition or
thinrs.1 Who would not gladly dispense
with it rather than enjoy it ut such a cost
The wonder is that Mr.. Winder, to enjoy that
benefit, should be willing TO perpetuate that
condition by adopting and perpetuatlng the
new inconvertible, icgal-tender currency,
tie absolute money, as 1t IS called. l. nave
heard OF making Il merit Of necessity, ana
finding matter Of congratulations where
others would have found matter OF condo
fence, like the old man who, lying in bed
one morning. and hearing his nelghbor call
his hogs. asked his wife il she was not so
clad that Mey had no hogs to call. But such
practical philosophers are rather admired
than enyied or initiated. Now, am not
DENYING the force OF Mr.. Wlnder's reason
inc against the practicability OF resumption
at this time, for I perfectly agree With him
in thinking that SIr. Sherman's apparent
par Of paper and specie Is sham, and cam
not last. l do not wonder Mr.. Winder
should recommend the continuance Of III
convertible money for the present as q
necessary evil; but do wonder that gen.
tleman OF such clear perception and such
discriminating judgment should be willing
10 embrace rs permanence a system the
benefits of which cannot be realized except
at the expense OF mourning il calculably
greater and more numerous evils. Mr.. Win
der thinks chat we ought not to COM
mcnce Specie-payment now, because we
have not the means to maintain il;
and so far agree with him; but he farther
thinks that there are dangers incident to a
convertible currency so great and so lnsep-
arabic that it will never be advisable that
we should have such a currency; and that,
therefore, when we come to adopt perma-
nent system we should reject the old system
OF paper convertible with gold and silver,
such as prevails now in ell commercial
countries, and adopt tbs new system OF abb
solute money as a sort OF non-conductlng
medium that will insulate US from the cleo
trio shocks which the money systems OF other
countries might suffer, and which might be
to us through metallic con-
ductor. In this opinion do not agree with
him. The danger he refers to is this: /" That
as the rule Of specie-paying banks is to issue
from three to six. dollars of paper to every
one OF specie in their vaults, when they lose
one OF specie they must call in from three to
six OF paper; and when the drain OF specie,
begins they know not where 1t will STOP,
and so must continue. to cnrtail out OF album
dant caution; that the volume Of q paper