The times. [volume] (Richmond, Va.) 1890-1903, 1892-12-21
THE DISPATCH LOCAL CURRENCY

We are very glad to have the little
bout now on hand with the Dispatch.
Nothing aids in revealing truth like dis
CUSTOM and our discussion of what is
to-day the most important question be-
fore the people of the United States
may result in clearing up some peoples
minds. The Dispatch Of yesterday says:
The Times misunderstands our propo-
sition. We will restate It:
IF the theory be true that the hest
currency is that which refuses TO leave
home. then whatever American currency
England, France and Germany refuse to
accept as good is better in the United
States than the currency which England,
France and Germany do so accept"
In other words IL the American green
backs cannot be circulated In those coun-
tries, but stay at home always then upon
The Times theory they are better than
a currency which would not stay at home
but would circulate freely there.
The substance Of this is that the Dis
patch thinks orr argument goes TO prove
that because greenbacks will not circu-
late in England and France, but obsti-
nately stay within the confines OF the
United States, therefore they arc really
a better currency for the worlds uses
than a currency which will circulate both
in the United States and in every other
quarter Of the world.
II the Dispatch could show that our
argument led to this conclusion it would
utterly destroy II. for IT would show that
we were claiming that n currency that
would circulate only In Richmond city
was the best currency that Maryland
could have although it would not circu-
late at all in Maryland, which would
make us argue for a palpable absurdity.
But The Times has never contended for
this, or for anything like it. and the
Dispatches radical error. IL 1t will pardon
us, is in failing to distinguish between
money and currency. Currency-frcm the
Latin currere to run-is that which
Will pass in a given locality as subst-
tute for money. Its capacity 10 pass or
circulate. depends upon the credit of the
issuer. 1t Is not reasonable 10 expect this,
whether issued by our Government or by
any other agency. here. TO pass current
in France or England, and as matter
Of fact, there is none that does so. When
We discuss currency we must confine our
remarks to instruments Of credit de-
signed to circulate within our jurisdic-
ton. for there Is no worlds currency.
Promising so much, we will state again
the proposition relating to local cur
rency that we have been contending for.
There Is but one money. coin. minted
and stamped by the Government All
other things which perform some of the
functions Of money are but substitutes
for It. They are promises to pay money.
When the issuer Of one Of these substi-
tutes. called currency for convenience, is
known to be both able and willing to
redeem them when called on, they will
grow into a circulating capacity through
out that region OF country that knows the
character and ability Of the issuer. But
they VIII attain TO no currency or cir
culating power in regions that know
nothing OF the character and ability OF
the issuer.
But little currency is needed for the
worlds great commercial affairs. These
are operated by balancing credits one