The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-21
PARADOX RECONCTLED OF MONEY
Current Mt Home, Uncurrent Away From
Home. Yet Perfectly Good.

by one or forty-four heads, can never
give us money current at home. incur
rent abroad. yet perfectly good; such
money can only be gotten by dissolving
the arbitrary partnership between Gov
| eminent end banking and currency. and
| by leaving banking and currency where
| they belong, in the hands Of the people.
| With Government then no longer master,
but the people, what will likely follow?
Listening to everybody, but especially
| 10 authorities" and the intelligent press
one must conclude that this would never
| answer, because besides innumerable other
objections. then everybody and every
bank would, II not already so. turn ras-
cal and swindle everybody with worth
less notes or rob them Of precious de-
| posits, or. IL by miracle, they remained
honest, then everybody would equally
despoil everybody through incompetence.
so that, able 20 put faith In nobody.
| financial ruin and chaos would overtake
us-pretty much our fix. by the way, with
| the best governmental management now.
It's funny how imbecile and guileless
| the people are when It suits ones argI-
ment to have them so. But sufficient
disproof of the peoples helplessness, i'm
| beciiity and dishonesty is the fact that
| they generally do manage all other kinds
| Of business successfully. That they man
| age all other things successfully should
be evidence that they will manage bank
ing and currency successfully. But no,
the usual argument is that because they
manage all other things well they will
manage banking and currency Ill, there
fore Government must manage.
Rut they managed once badly Granted.
And. therefore. they will manage again
badly. Yes, provided circumstances are
the same now as then; and. provided
people have not learned by experience.
But conditions and circumstances have
altered, and people have learned by eN-
perience; therefore 10 argue from then
to now is as puerile as TO make the man
wear his boyhoOd's suit. Conditions are
changing almost daily, and The Times
had as well seek inspiration for its man
agement in the methods Of thirty or even
five years ago as 20 think to manage
banking or currency by what was.
Success demands liberty, rejects hard
and fast rules. and requires universal
Joint flexible and responsive 10 changing
circumstances, and that is only possible
when free TO conform promptly 10 new
and unexpected conditions. But Govern
mental control necessarily fails, because,
having 10 act according 10 hard ana fast
rules. which, however bad, must operate
until repealed, It IS irresponsve to hew
In the main Government manages banking
and currency through laws passed In the
throes OF civil war. How absurd. there
fore. how utterly absurd, 20 cling 10 sucn
laws. vet authorities" the great dallles'
all worship Governmental management
with the superstitiOus blindness OF IDOL
aters. We need not send abroad TO con-
vert idolaters. Idolatcrs occupy the chiet
seats Of Government. finance ana trade.
Returning now to our muttons. namely,
10 obtain money current at nome anu
uncurrent abroad. yet perfectly soou'
and al the same time elastic and accom-
modative 10 good and bad times ahke'
Government must be deposed ana 'he
neople must manage banking and cur
renew 10 suit their convenience. In TINS
way instead Of. as Governmental controi
requires. one shoe for all feet' lht.e
would be as many different shoes as ar
ferent feet. and all would be accommo-
dated. Thus each city has its idlosyn-
cracv and it's special methods OF business
and were all free 20 act each wouid tilou-
ifv It's liberty 10 suit It's tastes ana ne
cessties. The tastes and necessluts u
New York. Philadelphia, Chicago lich-
rnond sc. are each different, ana 10 I'M
nose the same arbitrary restrictions upon
all must necessarily hamper ana lnJure
some. perhaps all, because, being based
on supposed general principles they
would probably apply exactly 10 none
Inst here IL Is well 70 remark that BANK
notes differ from ordinary prolnlssoTy
notes only in being payable on demand.
Nobody scents danger in ordinary prom
issory notes. nor thinks II necessary u
regulate their issue but II either Is uah-
gerous and needs supervision IL Is tne
ordinary promissory note. because many
between
date and maturity, and the hoider Is
HELPLESS until maturity. whereas demand
notes are payable at once and must De
redeemed on presentation under penalty
~ bankruptcy. To prevent A issuing |
time pronissOry notes would be felt 10
be a grievous invasion of his rights but |
TO prevent a issuing demand promlssory
otes is felt to be no wrong, but that II
would be wrong not 10 prevent hlih'
Singular how capricious usage Is
Coming now to the point, a is ready 10 |
issue and e. c. y. &C., TO borrow. A. Of |
course. will not issue unless he receives |
fun vaiue-that is 10 say. the means OF |
redeeming his promises, nor Will 3. c, d, |
&C., borrow unless they have confidence |
in a and can profitably use his notes.
4 will also be careful not 70 oVerlssue'
because excessive issue would beget sus-
picion, and suspicion would hurry back
his notes for redemption. Self-interest
would compel A TO keep scrupuous faith
with the public. because being able 10
get at him promptly the public would
either ruin him or prevent him from
profiting by the loan OF his credit. When
ever therefore, more currency was needed
borrowers would apply 10 the various
As-indlviduals or other banks-and the
demand would be satisfied and stringency
prevented. As long as TIE public needed
the notes they would circulate; when not
needed they would return for redemp-
ton.
Thus there are dozen men IN Rlch-
mond whose demand notes would have
been gladly borrowed at a higl. lntefr-l
during the past sixty days, and would
still be borrowed 10 the manifest pubic
relief and they would have circulated
and would sun circulate quite as readily
as greenbacks. II the AS We're strong
and we'll managed corporations Ike our
State Bank. no better currency could or
would be desired The facility OF re-
aemptlon would on rho one hand prevent
and the facility OF issue
would on the other hand prevent strin-
gency.
But this local currency, especially III
though perfectly good would
because unknown. be uncurrent else
where. which, however. would be its best
because IL would prevent over
issue and thus maintain confidence. Dan
ger would arise only I'm case or faclhty
of circulation away from home. specu-
atOrs and swindlers would then be pretty
sure to avail themselves Of the opportu-
~. sa.rt Il