The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-27
MIR. TODD AND THE DISPATCH ON
"rHE NATURAL CHANNELS
or TRADE"

| are very curious. Inc Iir'es sa'" 80
terday that It considered Mr.. Todd's
Grain Exchange resolutions substantially
the doctrines OF the Populist party ano
| the OcaM platform. 1t might have addeo
that a postscript to them providing fof
the issue OF money on beets ana CAP
bage as security would have converted
them into a full fedged argument for the
Populists' sub-treasury scheme.
Per contra, the Dispatch said OF them
that they had a 'melodious ring" that
| II enjoyed them, and that they read as
! II their author knew what he wahteo
/ IN say and how to say H." which signifies
| Enthusiastically the Dispatch's concurrence
An them. 1t then quotes the following
| from them:
"3 The Government should not heed
| the appeals so frequently made by spec
| ulators and money-lenders OF the hnanciai
centres 10 adopt this. that or the other
| action to bolster up their monopolisuc
| schemes. IT, as n consequence OF nom
| interference, the thousands or millions
| now invested in watered bonds and STOCKS
| at grossly inflated values should be re-
leased to flow again into natural chan
nels Of trade. the true interests OF all
commercial, agricultural. and industrial
classes would be greatly promoted and
the country at large benefited.
Adding, And with this plain talk we
end our quotations from the resolutions.
We understand the resolutions quoted
10 favor action by the Government that
will cause "the thousands OF millions OF
dollars now invested in watered bonds
and stocks at grossly inflated values to
be released from those interests. In other
words. the resolution would have the
Government TO PROSTATE and destroy
every bond and stock which comes within
the limit defined as water"
II the Government could and should
perform this act does the Dispatch really
believe the money now invested In this
water" would "1ow again into natural
channels Of trade? Our own opinion Is
that II you destroy a bond or a share OF
stock In a railroad. you simply release
the owners OF the railroad from the obli-
CATION to pay interest In the one case
and dividends in the other TO those who
had owned he bond or stock, and put
what would have gone into their pockets
into the pockets Of the owners OF the
road, and that the natural channels
of trade" having nothing whatever to
do with the transaction. would be en-
tirely left out You would simply have
robbed the bond owner for the benefit OF
the railroad owner, who had already re-
caived the bond owners moaey. leaving
the channel of trade" just where it
was.
Again. II the president and directors
OF corporations put "watered" bonds and
stocks out upon the world. they have done
what the laws of the land clothed them
with apparent authority to do 1t would
be an intolerabie evil If every person
bargaining for a negotiable security Of a
corporation had to go to the books Of the
corporation issuing 1t and investigate all
of its transactions to see that the direc-
tors kept strictly within the bounds OF
their authority before they issued the
to the frightful injustice which ii would
cause innocent persons. would entirely
paralyze corporations and incapacitate
them TO sell their securities.
The whole business is utterly unworthy
of common sense, and guilty Of fits as
an old lady once described a stupid fell
low.
Very well. II the purchaser Of the ne
gotiable instrument issued by a corpo-
ration is justified in purchasing such an
instrument upon what is on its face, even
though upon nice construction the direc-
tors issuing 1t may have exceeded their
authority, upon what principle OF justice
will you destroy the instrument in that
innocent purchasers hands? He has
parted with his money upon the faith Of
representations which the law clothed
those directors with every apparent au-
thority to make, and those directors have
got his money. If any one is to suffer
here, shall 1t be the innocent man, who
has parted with his money in good faith
or the railroad owners, who have DELHI
erately committed the management of
their affairs to fathless directors who
got the innocent mans money?
If, then, the Government applies the
drying process to this water" no addi-
ton whatever will be made TO the mat
uraI channels of trade but an innocent
man will be robbed for the benefit of
guilty and negligent men.
Upon the whole. taking the editorial
OF the Dispatch with what has gone be-
fore, 1t is likely that the Dispatch would
like to see the country make the ex-
pertinent OF coming down to free silver