Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-12-30

" Z
There u demand almost universal for
an elastic currency. We described . day
or two ago ono kind Of elastic currency.
Mr. Hepburn said. At the bankers conven-
tion. when the Baltimore plan was under
discussion. that NJ bank-note secured BY
stocks or bonds could possess elasticity.
"A currency to be elastic must be issued
against credit" 'In no other way can
Il meet the wants Of commerce" In
other words. banking means credit We
have stated heretofore how the old State
banks used to Increase their loans when
ever they were compelled to suspend
specie payments. The new banking sys-
tens have no such feature. but their
advocates expect to improve upon that
system Of putting out additional currency.
Mr.. Homer said in the Baltimore conven-
ton. In discussing the Baltimore plan.
that the currency must be elastic.
stretching out over the broad expanse
of business activity. able to supply Its
fullest wants. and contracting again as
the strain of commercial vitality relaxes."
But can we secure q currency system Of
that sort?
The New York Financial Chronicle says
that there are two sides to the projected
currency schemes. One set Of fnanciers
claim that the first aim should be to de-
wise = note that is safe, and then try
to make the system responsive to COM
merce. Another set OF financiers claim
that the note should first be made elastic
that Is, responsive to commerce-and then
make the note as safe as It can be made
consistent with perfect elasticity. In
other words. banking is credit. and the
best banking system is based upon credit.
This theory does not accord with the
present misunderstanding system.
But. as We said the other day. we hope
that from the various propositions which
the House Of Representatives has now
before 1t. or will soon have before It,
some substitute for the existing system
will be found which will leave to 1t no
friends or advocates.
1t II worthy Of renewed mention that
the depositors seem to have no friends
In Congress. The note-holders are the
congressional pets. Certainly the note
holders ought to be fully protected. but
with Mr.. Chandler. Of New York, we
think that the depositors ought also to
be protected. Then there will be no more
panics.
Mr.. Hepburn's remark that a currency
to be elastic must be issued against credit
w q in do hun IT.
Warner. of New York, who said in
speech in the House OF Representatives
last week that "a currency absolutely
safe is a currency absolutely worthless"
That is to say. as he explained, It is
worthless. except for purposes for which
the bullion for which the note stands
would have done Just about as we'll" Mr.
Warner. as New Yorker, presents the
New York view Of all these questions,
and so we are glad that he was a sup
porter Of the Carlisle bill, as it was before
1t was amended. seeing that that fact
indicates that he supports the substitute.
Mr. Warner elsewhere in his speech de-
clares for "a credit currency" He winds
up his speech as follows:
ut is now our opportunity the Demo-
cratic party's opportunity to give. and
to give at once, currency reform which
shall restore to our people that use OF
credit currency that is absolutely essen
tial TO great business nation like our
own
All that he says shows that he favors
an elastic currency. and also shows what
he considers an elastic currency. Let him
give to the currency both safety and elias
ITCHY and to depositors protection, and
he will make name for himself OF
which any statesman might be proud.