The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-04
TUESDAY. APRIL 4, 1898.
SIX PAGES.
PRACTICAL VIEW OF OUR FINANCIAL
SITUATION.


ed "Our Financial Troubles and Their
Remedy" which we printed on Sunday
is one OF the most luminous and inform
ing discussions OF the very serious eco
nomlc condition OF the country that has
been made anywhere. We are not pre-
pared 10 express an opinion upon "Vir-
gfnians" suggestion that we shall have
free coinage OF silver at the ratio of
twenty for one for five years as an ex-
pertinent. But, II we could feel sure that
the experiment could be confined 10 those
five years we should make no serious OPP
position TO trying it. Raising the ratio
from sixteen TO twenty would be dis
tinct gain. while making coinage free for
five years would not add anything TO the
silver that the present legislation (Which
we see no hope OF repealing) infiicts upon
the country. The present law sends out
s4.50O.OOO Of silver each month (substan-
TALLY. but not accurately stated, and the
minis are not capable OF coming more
than $4,000 per month II run TO their
highest capacity. To adopt the sugges-
ton would. therefore, add nothing TO the
evils that we are now suffering from,
while raising the ratio 10 twenty would
tend strongly 10 improve the situation.
But no real relief will ever come from
anything but n reIeal Of the Sherman
act, and the coinage Of silver. II 1t is
coined at all. with enough silV er in each
dollar 10 make it worth in the market as
much as a gold dollar.
"Virginian" was especially happy in
defining the process by which the system
OF national bank currency converts New
York city into d vast whirlpool that sucks
the whole country dry OF currency and
leaves every neighborhood bare Of the
means necessary for effecting its eX-
changes. Whilst the New York banks
are filled with money there are always
an abundance Of gamblers hanging around
them, eager TO borrow that money for
gambling speculations in stocks and farm
products. The banks are perfectly safe
in lending the money. because they have
the stocks and farm products as col
lateral for the loans they make. The
New York banks are. therefore, always
candidates for the deposits OF outside
banks. These arrange with the New
York banks for a share in what the loans
bring. preferring a smaller return for
their money from this method Of lend
ing 1t TO loans on real property or per-
sonal credit at home because the return
is much more certain and prompt. This
Y 10 inf act
receiver for the currency of the country.
They will always continue 10 do this
whilst the paper currency Of the country,
circulating as freely in one State as ii
does In another. quality which the
advocates OF the national bank system
point TO as its blessing, but
which makes It for us real
ly the curse OF the day. Since
note issued by Virginia national bank,
through its guarantee. by the Govern
ment, passes Just as freely in New York
city as II does in Richmond. New York
will always take II away from Richmond
because she. with her immense power Of
resource and prestige. can offer a greater
inducement 10 the note to come to her
than Richmond can offer it to stay at
home.
There is but one cure for this and that
is for the ri, hmond bank to issue a note
that is better understood and appreciated
here than In New York. In that event 1t
will stay at home and be always here 10
furnish our people with a currency. The
no
a note II at will pass equally in every
State Is the fact that we have 10 pay no
discount on money when travelling or
making exchanges Now let each man sit
down and ask himself the question how
that benefit ever brings him dollar?
II Is a very small fraction OF the people
that travel outside OF their own State
This fraction, then, is all Of the popula-
ton that knows OF an Inconvenience
arising from the discount. In travelling.
and all these can guard against that
Inconvenience by carrying coin or taking
with them certified checks. How many
Of the people OF Virginia would ever know
anything of a discount through business
transactions with the people OF another
State? Not one in five hundred. What
benefit then do the people at large re-
ceiye from the supposed blessing Of a
currency that circulates everywhere?
Absolutely none, while all suffer the curse
OF their money being always carried Off
70 New York FOR the uses OF stock and
Uan kamhlsss. they. themselves. being