The times. [volume] (Richmond, Va.) 1890-1903, 1893-11-26
THE "OPEN LETTER" As A REGULA-
TOR OF FINANCE.

! the bankers were the last persons from
whom you should seek IT, The statement
as made, is, Of course. too broad, yet We
| have not found all bankers, az a rule very
| sound In the theory Of finance The
] bankers theories are too often colored by
opportunities Of advancing their own in
terests, which they naturally fall into
the way Of thinking to be to the interests
OF all other people, when this is often
not the case. We have notable Illus
tration OF this Immediately before us
now.
Mr.. George S. Coe, one Of the most
prominent financial men Of New York
city, and president of the American Tx
change National Bank, has written an
open letter" to President Cleveland, in
which he tells him exactly what he should
recommend TO Congress as a solution Of
all our financial troubles.
The open letter has Of late years be-
come a very favored vehicle Of commune
cation. It's name fails to suggest prompt
~ just what the thing is, but occasional
experiences with them have taught us
that the "open letter" is one which the
writer addresses to the public at the
same moment he sends ii to his cores
pondent. Why this very eccentric course
should be pursued is not entirely clear
Perhaps II is because the author Is con-
scious that his suggestions, like most
things that are given away. are without
value. and that they will inevitably find
their way TO the waste basket, If the
correspondent is left TO dispose OF them
according to his judgment Of their merits.
Perhaps, too, he thinks that coupling a
distinguished name with his lucubrations
may secure to them a perusal that they
would certclnly never otherwise get
However this may be, Mr.. Coe has re-
sorted to the open letter. method of
taking the public into his confidence,
confidence which the public will sacredly
respect by Immediately proceeding to
forget st.
Mr.. Coe advises Mr. Cleveland that
new paper currency system is impere-
lively demanded and that it must GER
tainly possess certain characteristics that
he names, the first Of which = that 1t
should FOR safety. orig.ns ,e with the
comptroller Of the currency, in order to
restrict the intended amount by. some
central authority"
II Senator Morgsi.s experience with
bankers had ber confined to intercourse
with Mr.. George S. Coe, president Of the
American Exchange National Bank, we
would pJt have been surprised at his
Wholesale Characterization of bankers, for
morc dense ignorance of the true prirci-
pies upon which a currency system must
be founded. than is contained in the sem
tence quoted, 1t is not possible to find.
Indeed, it contains within itself the
germ of every error of the POpulist party.
II proceeds upon the theory that the pa
per currency Of a country is something
to be created by the government Of the
and thereafter coddled and nurs-
ed by it, as one Of it's infant children,
and that is the sum and substance Of
Jut 1OpullSl lutOIy VI lildHCt'
Now, that restriction of the amount
Of a currency to which Mr.. Coe refers is
not a thing TO be brought about by a
government official hewing the business
of country down to the proportions Of
a procrustean bed of currency which he
has determined on. The paper currency
Of a country, when it is rightly consid-
cred, is a thing to be as absolutely regu-
lated by the law Of demand and supply as
the price Of wheat is regulated by it, It's
quantity is not a thing TO be regulated /
by the ipse dixit Of the Comptroller Of
The Currency or any one else. Its guam |
.ity ought to be just what business re
luires which is one sum at one time |
and another sum at another. If the pa
per currency OF a country is in a sound /
md healthy state. the source from which |
{ issues must be in direct touch and com |
with the business of each |
lay that the currency may be increased |
rs there is a demand for more, and with |
irawn as business becomes slack. An ideal |
currency is one without any sort of fixed |
amount but one of which the amount |
adjusts itself under the /
influence of demand and supply. No |
greater curse can befall a people, there !
ore, than for its currency to emanate |
rom one government source to be abund-
INT in hard times and scarce in flush
lines.
There is but one way to have a curren-
y that viii answer fully and exactly 20
he calls Of business. aud that is TOR the
overnmenet to take its repressive hand
II. and allow each vicinity TO issue so
much currency as it finds that that vi
Unity needs, 10 retire it as soon as the
emand for 1t is over. We saw the Rich
lond Locomotive & Machine Works. with
undreds of thousands OF dollars of assets,
nd employing thousand men. pestered
} death some three months back because
was unable 20 obtain the paltry amount
+ currency-paltry compared with It's
to pay OF its hands
3ch week. Yet we saw it take the law
ito its own hands, and create the local
urrency that it's necessities absolutely
allied for. What was the result? 1t went
long with its business as though no panic
as in progress, 1t has paid off the cur
sncy that It issued, and is now on the
ghroad TO that prosperity which will be
such incalcuable benefit 10 Richmond
; wen as itseis This is an object lesson
lat should never be away from the eyes
I'd minds of our people.