The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-07-31

3eryfema with Leading Einni,ctal
Hen.
our currency should be aas good as ths
bert, with .a fixed standard sof value. anl
provided at the smallest possible cost. /
the Government can save anything by
making the paper money all Sgreenb backs in
stead OF part national-bank notes, By al
means let that be done. Only these condi
lions are essential that the paper money
should be kept at It's face in real m 1teg. ant
that the Government should not be exposed
to the temptation involved in the power tf
expand or contract the volume OF paper
money In circulation. - Herald, .fa.ty 2s4fh
Some OF our leading bankers were waited
upon and asked their opinionof the practl
catiIity OF the suggestions contained in the
above quotation. One of the oldest ano
most intelligent OF the State-street bant
presidents, upon being interviewed, said III
substance, after reading the extract:
81 agree with the writer as to the deslra
bllty OF having our currency as good as the
best. and that it should be kept at its face
in real money. by which, of course, he
means gold. We should all rejoice in this
but there is one serious objection to the
theory, here suggested, and that is that il II
were carried out Government would be
come the banker for the country. In sucn
an event it would be impossible. to prevent
expansion or contraction OF the currency,
which, in that case, would be at the mercy
of any political party that mlSht. De III
power in the nation. 1t would, in eHect, DC
like
EEyIyING THE OLD UNITED STATES BANK,
which President Jackson so fortunately
killed by- his veto. The money power, as
well as the religious and cooperative eIe-
ments in our society, should be divorced as
widely as possible from the Government.
n however, a saving in the way indicated
can be made without exposing the country
TO the dan, er OF Government monopoly
of the currency, and without disturbing
the fixed value of the same by undue eX-
pansion, it would be well, perhaps. to have it
accomplished. But can it be done in the way
indicated or in any other way2 Ii Govern
ment Issued only real money-that is stand
ard gold coin-the case would be altogether
different; but greenbacks are not real
money, and can never be made so until
Government receives them in lieu Of gold.
This it has never done, and it Is therefore
idle to talk OF making them sound cur
rency, especially while their volume is ia-
BILE to be increased at any time. II. how
ever, some unknown means could be de-
vised that would give US 4 reliable green
back currency without prejudice to the
safety Of the nation-or, rather, without
the danger Of a Government monopoly
for one would be perfectly willing to ac-
cept it. But the effect would be to retire a
number OF
THE WEAK NATIONAL BANKS
now in existence. This would be no grca,
calamity to the business community, for
there is a greater number now than is really
needed. In such an event / should expect
Government to remit our tax OF one per
cent. on circulation, which we now pay, and
that we would get rid OF 4 number OF other
expenses Incidental TO the present system
of banking, which might be saved us. Peo-
pie, in estimating what the banks realize
upon the bonds they have deposited with
the Government as security for their clrcu-
lation, do not take into account what the
banks pay back again or eX2end in other
WAYS incident to the system. In this mat
ter OF substituting greenbacks for ma
tional-bank currency-which is what the
advocates of what is called free bank
ing have all along agitated-I am satisfied
the Government will not act hastily or
uniustly. 1t owes many things to the mo-
neyed institutions of the country. II they
are again called upon to sacrifice to the pub
lie good. think they will do it. But il it
is only that the Government itself shall be.
come huge banking monopoly, with all
the dangers that such n change Of the
money power would imply, then they will
resist, and think when the people under
stand the case in its true merits
THEY WILL SUSTAIN THEM.
The writer of this article no doubt means
well. and his theory is all ingenious one.
But he has overshot the mark, and, while
endeavorins to avoid Scylla, has fallen into
Charybdis."
The same gentleman, in later interview
uttered some ideas which are here repro.
duced in substance. Speaking Of the gene.
raj ignorance of finance, even among men
connected with banking institutions, he
said:
1.-The fact is, there are bank presidents
who might go out upon the street, pick up
any ten men at random, and it would be
found that they knew as much Of finance as
most OF the directors Oh their boards"
Again, he said: "Most men are peculiar In
this, that they pursue a theory not because
they know it to be right, but because they
have made it hobby. And l venture to
say that even after they have become con-
WINGED that it is unsound they still adhere
TO it because they have advocated it. | have
no doubt the hobby Greenbackers would
sacrifice everything i'll the interest OF soft
money. They talk as if there was no such
thing as dealings or intercommunication be-
tween the nations OF the earth; as il there
were no lines of steamships and no mer-
chantmen tradi.g from this country to
foreign countries, and that the people with
whom they traded would not take our
promises to pay in exchange for their mer-
chandise.
But FACTS FARE FACTS,
and no amount Of sophistry can set them
aside. Our condition is as it is, and no
sreenback theory can change it. But these
Greenbnckers ignore it altogether. They
would build Chinese wall around us, and
hedge us in from the rest Of the world. with
the presumption that we can produce all we
can consume, and consume all we can pro-
duce. If this impracticable thing were to
prevail, should, OF course, remain here,
because it suits me best. but should not
be hopeful OF the future. Then, on the
other extreme, we have the very conscrya-
tive hard.money men, who cannot see
that anything but gold, and gold alone,
issa safe currency. But, after all, these
extremists are the strong men OF the
world, who give stiffness and backbone
to mems opinions. They are the positiyists
who have their following, and the larger
that is the more they are entitled to serious
consideration. Moderate men do not take
well with the crowd, simply because they
are moderate. no matter how sensible they
ali. take the world as it goes in finance as
well us in politics and religion, and behold
men of the strongest convictions, strongest
nreindices. and sometimes the strongest 10.