The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-12-23
LETTERS TO THE EDITOR.
VARIOUS TOPICS DrsCussED nv
THE PUBLIC.
rhs Curreacy END Iss Relation 10
r4sr 49, values- ,e,rs wne ~

The Currency enc h0 netsuo" ="
1lsg n vsaues- frs wa ~
10 the Editor Of the Dispatch:
The deb. OF the country was not instr
tuted for the purpose Of supplying cur
rency. Incidentally II was discovered tc
he convenient and effectual method Of
getting control Of the capital OF the coun'
try by the Government-an expedient foi
Establishing its own credit by becoming 0
sort OF lender, while II was under The ne
ccssity of being for many years borrower
al the same time. The result was we nave
a currency that has answered the purposes
az currency that originated in Government
credit while the Government was I'M
meusely in debt, aud which would never
have been so established had 1t been out oil
debt. In the ordinary course OF things the
Government would never have sold lts
bonds TO banking corporations merely lot
A basis OF circulation, and then furnisheo
the bills for circulation on being made Gus
todians OF the eonds-in other words,
on agreeing 10 become stakeholder OF
the bonds for the pubic. This position
would never have been thought oil.
and will not. as 3 continuing ano
settled policy Of finance, be tolerated
n was simply a contract with corporations
that il instituted for the purpose OF loan
ing its credits to them in the form OF bank
notes n they would pay consideration ior
IL. and buy its bonds al an agreed value
and fixed rate OF interest. IL was assured
of success and sustained In the movement
nv making such form OF currency the
sole currency or credit-money OF the coun.
try. and II did this by prescribing tax OF
10 Der cent. per annum on all credit circu-
Iation buf its own, or what Is the same as
its owu-that called nat;onal-bank notes
that II printed and counted out to these So
called banks. The whole matter was
vast usurpation OF authority by the Gov
ernment--a prodigious step beyond It's
functions and limitations. as 1t now APP
pears. when the President calls the atteD-
fiou OF Congress to the probable monetary
crisis which would follow the further re-
demptiou OF the Government bonds.
How Il thisf Why should the Gov
ernmenrs paying its debts create q
monetary crisiss 1t would only be
putting 10 circulation money to the
amount OF bonds il redeemed. Suppose It
redeemed all of its bonds. 1t would in
cluds those II holds as holder Tor the
public for the banking circulation. and con-
sequently the pledge OF security for the
navment OF the notes would exist no more
And this 10 Just what the President refers
to when he says, OF $3.50, 100000 OF bonds
held for circulation. some S2OO,OOO,0O0 are
subject to call, and as the money on hana
and sccruing revenue is adequate, II VIII
be 10 the interest Of the Government to call
In the bonds and pay them oil, and thus
surrender its agency for managing the
finances of the country. IN sort OF De-
pevolent spirit he suggests that Congress
might order the issuance OF bona DeaIl
a nominal rate OF interest TO take the place
OF the redeemed bonds, on which to con-
tinue the circulation; In other words.
lend its now established credit to the banks
10 continue the present circulation on, or;
SAYS he, repeal the 10 per cent. tax on cir
culstion other than the natlonal-bank circu-
lation, and thus remand commerce back
10 lis own methods of credit circu'
latiop. He admits IN so many words thai
the 10 per cent. tax has existed as barrier
10 the exercise, by trade and commerce, OF
one OF Its legitimate functions--that OF
maintaining circulating medium as IL
maintains the operations OF trade in other
commodities, money and credit being Just
as essentially commodities ~ coffee ana
bacon. But which will Congress do: The
tiat-money men saw that the Government,
BY the exercise Of power in prohibiting the
people by a prohibitory-taX from instituung
banks OF circulation, could only do the
work better by issuing irredeemable paper
which would be Just as good az its bank
notes, because there would be none Otner.
All hands would have TO take them, and
there Is nothing better than that which an
swers the purpose, especially where there
is nothing else, and so they thought TIE
Government might Just rs well exercise
Its unauthorized power by issuing money
instead OF bonds, and while Furnishing
penty OF money save itself from pay
ing interest, and lessen to that extent tn
taxation OF the country. Absurd as TIL
conception OF monetary system was
was Just as legitimate rs the prohibition.
tax OF 10 per cent, and which wa
borne without complaint on all sides
Strange as this Is, it is true; and when
is patiently considered we can hardly ere
dit our senses in the belief that 1t Is SO
The fact that great national measure bat
TO be sustained by coercive power OF pro
hibition, and not by It's merits and sove
reiguty Of right, Is blot upon intelligence
and civilization, and reproach on th
reputation OF Congress that has countt
nanced 1t for some twenty years.
The fiat-money men are not the onl
ones that have discovered the efficiency @
this assumed function Of the Government
In managing money matters in cases G
trouble or scarcity OF money. The liquor
l{u<fl haun tAh 10
Government for help dust AS il It were
banker) TO enable them TO hold their liquo
for an adequate price by consumption
Hence they ask the Government to len
them money and take their liquor {
security-in other words, lend Their
notes or bonds that they can rails
money on to pay tax and me-
their libilities, and take their bonded liqnC
and hold 1t until such time as the mark
price viii justify their selling. Thus Il
plan OF Government aid and OF the 60
ernment interesting itself directly as
partner In trade has been inaugurated. ar
will be always acceptable to adventure
that require large facilities for specul
ton. .-ft,s.s. - r.4,.-.
Nothing can be more ruinous TO ira,
than the act Of the Government In enteril
the markets as trader or Spectator.
the Government were to engage In tar
portatlon, by building ships and traversil
the oceans aud rivers as common carrie
who could compete with lty Who cou
feel that contingencies and necessities wi
1t would he the same rs with private ent,
prises, and that II would be safe or wise
attempt to compete with IL? Consequent
IL would become the sole master OF CO
merce, and those Dow engaged In II Won
have to hire themselves to the Goyernme
or quit the occupation, and thus II won
interfere with and deange the value a
rewards Of this branch OF trade. So
would be with every other branch Of ira
that II entered upon.
But some VIII say that the Governiae
has not been engaged In banking. Y
might answer that we would not be pr
voked TO respond TO such shallow ssst
tion.' II has been the biggest Job
lie hands hat -