The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-27

b. ca. has erected a vast complicated
and infexible scheme OF banking and
currency, TO which all localities, whether
North or South. East or West, whether
on Atlantic, Pacific or Gull. whether
neighbor or thousands OF miles apart.
and TO which all interests, whefher MIN
Ing, manufacturing or mercahtie' "heth-
er agricultural, grazing OF numbering.
whether Ice and granite In Maine, or
fruits In California, or cotton IN SOUTH
or grains In centre, or precious metals
In West. must infinitely ana inexorably
conform. This scheme conforms TO no.
body and TO no interest. TO 10 place n
to no circumstance, but Individual u-se,
place and circumstance must conform to
1T. No government can master such a stu
pendous scheme, and therefore govern
mental control Of banking and currency
must fail from lack OF mastery. We have
long withstood the evils. and long warded
off the disasters Of this remorseless fin
ancial Juggernaut, but at last payday
has come, and no man but feels the con-
sequences.
Close contact or intimate acquaintance
Is also essential to success, but govern
mental management can never acquire
this close contact-frst. because Of law,
and. second. because OF difference of re-
d~uirements. Thus Congress must govern
through laws which must operate till
amended or repealed, regardless OF effects.
Now granting Congress competent and
the laws wise. yet to continue wise the
original circumstances must remain I'M
changed. But all know that cir
cuH-stances change SO much that
management must change too. and
that within a five years they change so
rr.yt1r- thpt Lo,lr~.Yfaxr nnnfrnnfU AZ tho
methods of five years previous are pur-
sued. Solvency consists in such close
contact with business that change Is per-
ceived at once and conduct modified &C.
cordlrgIy. Laws, however, cannot so
conform. even though the necessity is
perceived, but must operate till amended
or repealed. But Il is difficult to repeal bad
laws, because many fatten on their
abuses. and ali such will be more eager
against repeal han others for repeal
repeal to them meaning certain personal
loss, TO others meaning probiematic or
impersonai gain only.
Good laws thus from changed conditions
become bad. Tie vast banking business OF
this vast country. for example, is regu-
lated by infleXible laws. mostly enacted
some thirty years ago, under such differ
ent circumstances that we may be said 20
Aff III a hlllflflli hDll III bAN llbhbh Rol
ditions are so vastly different. and though
the laws of thirty years ago are so mani
testify inapplicable 10 to-day. It is impossi-
bic materially to amend them even, and
why2 Because the interests that fatten
on the abuses Of these inappIicabIe laws
are so enormous They effectuaIly resist
material amendment much less repeal. If
the hundreds broken banks, the thOus-
ands bankrupts, the millions suffering
from bad times, want TO know what has
hurt them. they are hurt because govern
ment cannot come into close contact with
financial requirements, and cannot. there
fore. promptly conform thereto, but must
manage through ~infexible, reDorseless
laws, totally inapplicable TO present con-
ditions, passed years aso.
Congress moreover cannot come
into close contact, because the
same law inexorably applies to all
places, and what may suit one
or some places cannot possibly suit
all or most places. To treat alike places,
separated by three thousand miles Of
longitude and half that distance Of lati-
tude, is to insure disaster.
Governmental control does not apply
equally well, even 10 places so near as
New York and Philadelphia. II govern
mental control fits so badly two feet so
near alike or at least together, as New
York and Philadelphia, what the multi
tude Of misGts for all the country. What
Is needed is feasibility, and feasibility can
only be obtained by leaving people as free
in banking and currency as in other af-
fairs. Looking therefore to theory,
mastery and close contact governmental
control Of banking and currency is ne
cessarily a failure. Il.