Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-02-08
THE NATIONAL BANKS.
successful Operation of the Present sys-
tem-The Currency.
To The Editor of The Dispatch:

To the Editor Of The Dispatch:
The editorial article IN your issue Of this
date entitled For Whose Benefit" is
timely and to the point, and will doubtless
be widely endorsed, for 1t is certain that
thinking minds do not share in this unrea-
soning craze against national banks which
unfortunately obtains.
You say that Treasury notes based upon
silver and gold have the worlds money at
their back. Silver certificates and gold
certificates are as near real money as paper
money can be, seeing that the money for
their redemption lies in the Treasury at
Washington awaiting the demand of the
holders Of said certificates. What would
be the value of Treasury notes issued upon
corn, cotton, tobacco, wheat, and other
commodities we cannot foretell2" You
also we'll say that no banking system
equal TO our national banking system Is to
be found anywhere"
Should it ever happen that this Govern
ment shall issue Treasury notes upon the
security of corn, cotton, or other products
things will have arrived at pretty pass.
Equally so should this Government 90 into
the mortgage business and loan money on
lands. The vaults of the country are now
overloaded with silver bullion stored as
security for certificates of value.
Where will all this corn, cotton, and
the matter is that no Government on earth
should issue money at all upon any security,
whether of gold or silver. Governments
certify by their stamp upon gold or silver
coin that that coin is of q certain fneness
and weight required by law, but they by
no means issue that coin as money.
The theory of the monometalhsts is
almost equally as wrong as is that of their
extreme opponents. That there is not
IL - h. - a, L. -.
ness of the world is 50 well known as to be
almost axiomatic, and the opposition to
the free coinage q do not mean forced
coinage by any means) of silver seems alb
surd. That there should be aunt of value
is seif-eyident. Let that unit be gold and
have the silver dollar conform IN weight
and fneness with the almost universally
accepted ratio of value between gold and
silver. By that course oil rocks and
breakers will be avoided. Then when sill
yer bullion is taken to the mint let it be
coined and issued as coin, not in certif-
Gates or notes. That will give a market
for the immense silver production of this
country, and there will hardly be danger
of an overissue. for the people at large are
not going to take more coin than their
needs call for.
In regard to the national banking system
this Government has made the mistake of
redeeming its bonds too fast, and at this
rate that banking system will soon have to
cease for lack of the existence Of United
States bonds to deposit as security for cir
culation. Such change inthe present sys-
TEN of redeeming or funding bonds should
DO made that national banks NAV have
every facility for continuing their business
They are scattered throughout the length
and breadth of the country. Their officers
are men OF intelligence, and by their bust.
ness position must know the financial
needs Of their immediate communities.
To these banks alone let the power to issue
notes be relegated. They viii not be af-
fected by public clamor, nor is their action
guided bya popular vote which, IN days
not long past, testified to the strength OF
the greenback theory. Consequently there
will be no oyerissue Of notes; the money
question will be taken entirely out of poll
ties, and no longer will the country be
shaken every few years from centre TO CIR
conference by the financial problem"
RIcHMosD. February 8, 1891. s.