Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-01-10
SATURDAY. JANUARY 10. 1891.
Afraid of Silver.


hed M Wall street. New York, that IL
knows all that is TO be known in regard to
financial questions. To oil men whoever
or wherever they may be who repudiate
Boston notions Beacon street says by us
conduct and ofttimes IN so many WORDS,
II am holier than you 1t forgets that
the conservatism of the South on almost
every question has been the salvation OF
the country from many other things De-
sides Know-Nothingism. II forgets that
here in Virginia in 1878 Greenbsckism re-
ceived A blow from which that delusion has
never recovered. II foreets Mr.. LIscoISs
saving: lone man cannot be as wise as
all men" that il, Beacon street cannot be
"A wise as all the statesmen and financiers
whom it tries to whistle down the wind
Even that excellent journal the Boston
Daily Herald deems it not improper nor
unseemly 10 undertake to enlighten the
advocates Of the free coinage OF silver as
Ia the "dslusion" under which they are
laborlng. In doing so. it begins with the
horn book of finance. In fact, IL Is amusing
TO see the patronizing air with which the
Herald breaches common-places to the adj
vocates Of the free-coinage bill. However,
although it has that bill in mind it does
not mention it in the following paragraph;
1.-THE notion that there is some mystic:
rious power and value in money, over ana
above its quality as q medium OF exchange,
IL one into which ignorant and eeml-edu-
Gated men are exceedingly liable to fall.
For il il easy for any one who has made
reasonable study Of this subject TO compre-
bend that il we had q gold or silver cur
repcy represented by billions of dollars,
or il we had paper currency OF
the same extensive character 1t would
in no way improve our condi-
ton. but tend, on the contrary. TO make
il worse, because much more uncertain.
The true capital. the true wealth OF coun-
try is not and cannot be its money. for we
sbould be nearly az wealthy rs we now are
il every dollar of gold. silver, and paper
money was entirely destroyed The enect
of such destruction would merely be to
force us to use some other token in carry
ing on an exchange OF wealth or services,
which almost alone constitute or produce
wealth."
Our Virginia statesmen understand these
things. They know that there are numerous
unaccountable things and insolvable pro-
blems involved in the money question.
Who would believe that in 1850 the entire
paper circulating medium OF the United
States amounted only to some two hundred
millions of dollars? Who would believe
that Virginia had more banking capital in
1850 than she has now9 Who would be-
Eeve that Richmond had more banking
capital when she had only forty thousand
inhabitants than she can boast of now,
when she has nearly hundred thousand
inhabitants? Who can tell how often the
currency must be used each day in order
for it to show its circulating power
or ability to settle indebtednesses9
Is il not true that this Is an
element of the financial or currency pro-
blem which has not yet been taken into
the calculations of the theorists2 The
Herohi evidently regards money as nothing
moro that measure of values. But isn't
IL something more? That paper probably
holds that as in right-angled triangle the
square of the hypothenuse is equal to the
sum Of the squares of the other two sides.
% the property Of the world will increase
in nominal value in proportion as the
amount OF the currency Is increased.
The hypothenuse is represented by the
property and the other two sides by the
amount Of currency and the frequency OF its
use. That's to say, the money of theworld
will always buy all the property ofthe world.
The price Of property will rise and fall
with the increase and decrease of the sum
total of the currency. This Is what the
Herald means when it speaks of currency
of billions of dollars" as no better than
a currency of saw fifteen hundred millions
of dollars. This, we take it, is not yet a
settled question. When we recollect that
according to the books of hundred banks
in the large cities nearly all the debts were
settled with but little gold, silver, or paper
less than per cent. of all, we think-we
must conclude that bank-checks play an
important part In the currency problem.
1t is because there are so many unsettled
problems in finance that we are willing to
zee tried the experiment of free coinage.