The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1893-03-31
ROANOKE, VA, MARCH 81, 1893.
radical MoNErARRY REFORM.

A most remarkable article on none
tary reform appeared in the Richmond
Times of Sunday, March &c, from the
pen of Hon. Lewis II. Blair. We say
remarkable, for in boldness OF presenta-
ton, cogencY of argument and clearness
of reasoning it will rank with any re-
cent production on financial topic. 1t
will DO difficult to give a brief and clear
synopsis of Mr.. Blair's proposition,
argument and conclusion. He advocates
the abolition of the legal tender func.
tion OF money, the suspension of coinage,
and the solution of currency problems
by the commercial world unrestricted
by governmental interference.
While to the casual reader this looks
like high grade anarchy, it is only fair
to say that within the past two months
some Of the profoundest financial think
ers OF two continents, reasoning from
different standpoints hawo arrived at
the same conclusion. Without being
able to 60 so far as Mr.. Blair, THE
TIMES has long been Of the mind that
the closer governmental legislation ad-
hered to natural lines the better it
would be for the people.
The first principal of exchange is
the transfer Of equal values. The saw
age traded furs for weapons. Civiliza-
tlon introduced a third factor in the
form of compact and ornamental m etals,
rare in quantity and though difficult to
obtain universal in their diffusion.
These were gold and silver. Before
the methods of reductlon were de-
, veloped gold and silver had nearly an
equal value. AT one period in Roman
history the ratio was to s. When the
Peruvian Colds came in after the Column
bian discovery the ratio wasi to IL. The
early voyagers found gold and silver OF
equal value in Japan and took advan.
tage of it. But it took centuries to
develop tho legal tender idea. Natural
barter got along without it. Interna-
Sional exchange does not recognize the
legal tender function of gold. 1t treats
it as bullion, regardless OF image and
superscription.
Tho legal tender function is then con
j
power. The only exception we can call
to mind was the Latin union 5 fpanc
piece, which was good in Franco,
Switzerland and tally. 1t looks like
great convenience, but that convent
enco is exaggerated. 1t does possess
great danger in this. When a panic
comes everybody demands legal
tender and there is never one
tenth part the legal tender
necessary to pay out. For instrnce the
New York banks have deposi.s on call
of $3.50, 900, OcO, and specie legal tender
of only 10000 600 to pay it. DO you
know what happens when q flock of
sheep try TO get through Is narrow
door at the Same time? Some get hurt
That is what happens when tho legal
the government might we'll abolish
the legal tender function of gold and
silver, letting them rest on their natural
uses for value, but it would do we'll to
still coin them that a standard Of
weight and aneness might be observed
OduhluS lnSCltut lOLS WOulQ tlen eX-
pand their credits along absolutely ma
tural lines.
Then there seems to be but one line
In which the Government. mood interfere
further in monetary matters and that
would be in the establishment of com.
posite standard representative of value.
This should be based on the present
price at say New York OF staple
articles in similar quantities sufficient
to establish the standard. This
should be in sufficiently large
measure to be useful ia largo
transactions. Take say ten bushels
each of corn, rye, oats and barley, lOl
pounds OF cotton, two tons OF coal ana
one ton of iron, and similar artic ies
and make a paper certificate, receivable
for all dues to the government at
at market value OF its constituents.
This certificate would not shift in value
any moro than the English pound
sterling as a medium of international
exchange.