The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-02

ro,,v yesources. which makes a paper cur
,sncv If some kind indispensable. The dan
CA, and .here Is a great danger-attendng
the issue of legal tender notes by the Gov
srnmsnt il that in every financial stringency
n dominant majority in Congress will seek
relief by larger issues OF notes.
This inevitably tends to too redundant cur
rencv and TO all the evils of On over-Infiated
currency. besides RELOCATING 10 Congress what
ought only to be done by the people them
selves under established limitations OF general
law. National Bank notes failing then. State
Rank issues come 10 the front with very
powerful appeal. and an appeal which would
osr,sinlv be heard with instant favor X the
experience of the past with deprecated State
Bank notes were not ever present This being
so would il not be well for us to address our
selves TO the question. May not this difficulty
be overcome2 rather than TO Danish the pro-
position without giving 1t hearing.
II ia possible the State banks might issue
their notes under such conditions as would
make them acceptable wherever in the
United States they appeared. If. for in
stance the banks were required 10 redeem
them always on demand in coin and they
we're made a first lien upon al the property
Of whatever kind owned by the bank, a long
step would DO taken towards giving conf
dence to them. Such provisions. however,
could be attached under the Constitution
by the State legislatures only, and. therefore,
there might be one provision Of this sort IN
one State and another IN another State.
Compulsory national sanctions might be
given 10 them. however. by stringent ma
tional bankruptcy act which made q refusal
10 pay one OF its notes in coin q peremptory
act Of bankruptcy. The directors of bank
would be very careful how they failed 10 give
coin for ono Of their notes with this terrible
alternative hanging over their heads. AMI il
tho public mind could oIce DO saturated with
the belief that any note OF any State Bank
whatever would certainly be redeemed in
com when presented to the bank that issued
It. the whole problem would be solved.
The value of local banks issuing notes ac-
cordng b. the demands of the neighborhood
and retiring them when no longer needed If
only the quality of universal confidence
could be given 10 the notes is be-
vond all praise. IL would constitute the
ideal currency II would enable each
farmer and each merchant as he needed
currency in his business, to utilize his prop
erty resources for securing currency by pay
ing small premium for 1t, and thus make 1t
possible for millions OF enterprises 20 be un-
dertaken which have now to be omitted. The
individual has abundance Of property, but he
is wholly unable to secure the currency that
he needs for what he wishes to undertake. A
system which produces this result is necessa-
rily wrong and cries aloud for amendment.
The amendment should be some device
that Will enable him 10 secure currency when
he needs it 10y pledgng his property for the
currency but which. at the same time. will
make it absolutely certain that person hold
ing green note is perfectly sure Of being
able 70 turn i into coin at his pleasure.
TIE TINES is wedding itself to no theory
and distinctly disavows any purpose TO adyo-
cate a revival Of the old State Banks. ID IS
treating situation apparent to every ones
eyes as it is, and they see 1t, and with that it
leaves the subject to those who are better
able 10 chat with II.