The times. [volume] (Richmond, Va.) 1890-1903, 1892-08-19
THE WEEKLY SUN os CURRENCY AND
RAILROADS.

marty and also we are sorry to say, OF the
rarmors, Alliance. in commenting upon
Chairman Gordon's recent address to the
Democra,s who have gone off to the Third
marty. saws that it (tho Third party),wsnts a
free governmental banking system. so that
nroducts lsicl and consumers may be
brought together; and that the Government
sbsll own the railroads 80 that all sections
NAV have their hauling done on equal
terms"
If the Sun and those for whom 1t speaks
are believers in fiat money we have no argu-
uent TO make with them. We look upon
any man who believes that Government can
| make piece of paper worth dollar by
put.ing its stamp upon it as being OF the
| same order of individual as the person who
believes man can learn to hold himself
out of third-story window by his own
coattail. Argument with people Of this
sort is wasted.
Money is coined from two precious metals
and there is but one money, the products OF
the precious metals. Currency. whether
issued by Government, by National Banks,
by State Banks or by individuals, IS prom
ise 10 pay money on demand, and when a
man recognizes these two Fundamental!
principles We are always ready to discuss
methods and plans for issuing currency IN
conformity with them, But we can have
no discussion with the man who starts out
with the postulste that money can be made
of old rags or oak leaves. Now. this fun
damentsl idea of money and currency
being held in view, whence arises
any special advantage from the Government
being the only issuer OF currency rather
than banks? If our conceptions OF money
and currency be correct, the Government
must hold itself ready to redeem its currency
with coin wherever coin is demanded land the
Government is IN fact called on every day to
redeem its currency in coin just as bank
must hold itself always ready TO redeem IFS
currency in coin and if the Governments
currency is TO be issued with any reference
whatever TO those fundamental principles
which lie at the basis of all currency, we see
no advantage to be gained by making the
Government, rather than the banks, the
issuer of the currency.
We do see. however, positive disadvan
tsge and danger in the principle. When
the currency is issued by private insttu-
tions. and more especially by State Banks,
unhsmpered by the Federal Governments
control, the volume of the currency will
always bear proper relation to the needs
81 4 H.. u Tgh Nrfll
never do when issued by the Government
because as soon as tho Government becomes
the father of the currency it becomes the
foot ball of politics. And if the State Banks
are allowed TO issue currency every neigh
borhood will be enabled to utilize the prop
erty of that neighborhood, available and
suitable for the purpose. as a basis of cur
rency. and each neighborhood will thereby
be made independent to certain extent Of
the national currency. The notes Of its
banks will be IN the nature of the checks
and bills Of exchange of general commerce,
whereby one man transfers 10 another, not
money. but part of his credit.
The State Bank having at its back the
property of its stockholders and borrowers,
a transfer of one of them is in effect
transfer Of a part of the credit of these
persons. and 1t serves the same purpose in
the neighborhood as the bill OF exchange
serves between New York and London.
Such a currency as this. when sound and
always redeemable in coin, is the ideal cur
rency. This then is what the Sun and its
readers should strive for and this is what
the platform of the national Democratic
party demands.
We cannot unite with the Sun in demand
ing that the Government shall become the
owner of the railroads of the country. To
buy them would cost the Government
many thousand millions of dollars. We
know too we'll how private business when
managed by politics, is run to expect any
substantial revenues from them. The coun-
try would then have 20 contribute as taxes
the enormous sums necessary to pay inter
est upon the purchase price of the roads
with no corresponding returns from
them. But If all the railroads and tele-
graphs and telephones were owned by
tho Government what an army Of Gov
eminent employees would there be to
operate them all. Even with the pres
ent number of Government officers
elections are 80 dominated by them at some
places that the people hardly have a word
in their own elections. What would be the
case with every railroad, telegraph and tele-
phone employe being Government officer?
Elections would become farce, and rot
tenness and corruption would rule from
the top to the bottom. We say nothing for
the present of the inherent impossibility of
so regulating traffic as that each mans
freigh. shall always be charged the same
rate per mile as every other mans is charged.
That is a matter which can never be regu-
lated otherwise than by the law of supply
and demand. But viewed from the stand
point of politics alone we can conceive of no
greater curse that could befall this county
than for the Government to become the
owner of the railroads, telegraphs and tele-
phones
THE TYRANNY OF THE WALKING
DEIEGATE