Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-07-16
MONEY FOR US ALL.
How It's to Be Obtained and Of the
Right Quality.
THREE THEORIES ADVANCED.
Is,trrs from General Rosssr. NJ. a. G. "a
Riehmcnd Msrchans,, and Levss
n. Blair. ESQ.

~
view appears more reasonable. In the
mean time the financial condition will con-
tsnue to improve, provided 1t is seen after
Congress is organized that its repeal will
ultimately result.
After the repeal Of the Sherman act.
what next?
Tho struggle will unquestionably be a
bitter one. The opponents OF its uncon-
6itional repeal will likely be divided into
two general classes First, those who
favor the adoption Of some plan IN the
hne Of the recognized principle of bime-
tallisrn, looking to the free coinage of silver
in greater ratio than the present one
which is about 16 10 / F.; second, those who
advocate the repeal of the tax on State
bank issues.
Asto the G .st class, the Sherman act was
merely a max eshlft passed By sfew Demo
cruts and the mass 0i the Republicru
party 70 satisfy the clamor OF the Demo
crnts for the free coinage OF silver. Does
any sane man think for one moment that
the sherman bill would have beon passed
could its disastrous results have been fore
seen?
The annual production Of silver is about
one hundred and fifty-two million onnces.
o. winch this country produces about one
half and purchases about one third. and
India formerly purchased about one third.
Yet we are are asked 70 try the experiment
of sustaining the whole burden ana De
prepared to purchase the whole output.
TIC only chance OF the success OF such
q r,,an Iests upon the assumption that by
largely Increasing the ratio ether coun-
trios will fall into line in order to increase
their circulating medium.
Already England is demanding that the
International Monetary Congress be re-
assembled without delay 10 consider THIS
very question. Would it not, therefore,
be moro rational not to try and settle TINS
question ourselves, but TO leave IL for set
tlement upon basis that will OF necessity
be a fixed one and which will largely de;
crease our purchases of silver ana VIII
give our silver currency purchasing
power in all civilized countries equal to
what il possesses in our ownH
OUR BANKING SYSTEM.
Az 10 the second class, your editorials
r,rS1ts the repeal Of the tax on the State
bonk issues have been so able and con-
Vrncine that but little can be said on the
SUBJECT. trust, however, that few
main. practical facts will enable ignorant
iavn,en like myself to better appreciate
wiz this act should not be repealed. The
advocates of this measure clam that 1t
does not follow that because the measure
was failure in the past 1t VIII necessarily
lroye so IN the future. FOR the SAKE OF
argument grant that this be correct, aud
examine the grounds OF THIS contention.
We are told that the circulating medium,
which we term money, shoDld DO In
creased. Bear in mind, however, that
the business of this country Is done
On a basis Of 80 to IS per cent. OF
credit aud from to 8 per cent. OF money.
Euooose YOU increase the circulating me-
dunn 10 10 per cent. and seriously weaken
The remaining 80 per cent. of confidence,
what will be the result!
Does not the terrible period OF strin-
gency through which we are now passing,
when we have seen a shripkage OF values
of over a thousand mhiion OF collars,
answer this question?
PgjBn 6dcie, an increase of popul ation
demands pro r0id increase OF circulating
medium. But this is not true, because an
Increased population necessarily produces
a Iarger urban population. increased facilI-
ties of communication. and closer com
mercial connection, thereby reducing the
necessity for actual money. Iate. Tor IN
stance, aiarge importing trim In new YORK,
doing an annual business OF 0,0000OO.
lie receives checks in payment of his bills.
His goods are handled by public ware
housemen. whose charges are paid by
checks. and his other business expenses
arc ali maid by checks. Take the large
meat-iuice company of this city that sells
not less than a case of their product,
amounting TO $3.50, who never receive one
dollar in currency in payment. Would
such a thing have been possible fifty years
SINGER
Will gray at home and be Just as good as
the Treasury notes. thus supplying local
currency when the national currency
during periods OF stringency flows to the
large money-centres. Does not this dis
proye itself on its face. because. if just as
good. will 1t not follow the same course !?
Tho creditor class lives in the large cities,
and during periods of stringency currency
flows as naturally to the large cities as the
rivers to the ocean.
No are told they will make the issue re-
deemable in coin or Treasury notes. Let
the stringency come. The notes Will all
return Immediately to the banks of issue
for redemption.
The State banks would then be unable
10 issue drafts on northern banks, because
the home currency would not be accepted
by them; but'the depositor needing the
drafts TO meet his purchases IN the Wsst
or North would check out the currency,
receiving bank issue; for which he would
then demand specie or Treasury notes.
This process would cause run and break
any bank ID less than week.
ISsoLvENT BANKS.
We are told a State-bank issue can be
made so thoroughly secure that their cur
rency will never depreciate. Theoretical
", yes; practically. no. Who will under
take to guarantee that all the different
States will pass laws throwing the proper
safeguards around this privilege LOOK
at the great divergence existing in the
divorce laws OF the different States,
touching the most vital question of our
entire social fabric. We are told the ma
tional banks fail as we'll as the State banks.
OF course they do. but who expects that
laws can be passed guaranteeing the abso-
lutte success of any class OF mer-
camille enterprises any more than you
can legislate criminals into honest men.
The stockholders of national bank, IN
addition to losing the amount subscribed,
are liable for the face value OF the entire
amount of tho capital stock. What State
has provision of this kind In addition.
ell national banks are required 70 keep a
certain reserve in cash ALWAYS on hand.
and, moreover, are under the constant
supervision of the Treasury Department,
and nearly every national-bank failure
shows that the president or cashier was
dishonest or had made false reports.
Unfortunately, as stated, there Will
never be any way TO avoid this. Compare
the percentage OF loss TO the depositors of
the insolyent national aud state banks
during the past twenty five years, and the
result shows that this branch OF the ques-
ton admits of no argument. Who are the
principal advocates OF this measure
Brokers, those directly OF indirectly in
terested IN State banks. and large per-
centage Of the debtor class. The brokers
aud State banks see O chance of large
profits; therefore We are not supposed to
assist IN grinding their axes.
Tho case of the debtor class demands
our most earnest sympathy and considera-
ton, but let him not be deluded into the
belief that a. greatly-increased currency
vii inure to his benefit.
TIE TENNExsEK PLAN.
The old conservative State of Tennessee
proposes State bank issue of S25 0On, 900,
and on this basis the United States will
issue about $500, COG, 000--an increase of
about 60 per cent. in our circulating me-
dunn.
Let the currency be greatly increased
and giut will necessarily result. which
must seek investment to produce reve-
nue.. and loans will at once be made on
everything having o basis of value.
Would this produce general thrift and
economy?
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