The times. [volume] (Richmond, Va.) 1890-1903, 1894-09-20
WITH COLIATEKALs. YEs-BUT WHO
HAS THEM?

Under the caption. mo Initiation Want
ed" the Baltimore Sun says editorially:
While our currency might be more elias
tic than II is and supplies Of loanable
funds might he better distributed over
Tie country than they are, the vast sums
OF money lying idle I'm our banks an
other financial institutions merely be-
cause no use can be found for them-even
at the lowest rates ever known in the
commercial world-shOw that no exDan-
sion of the currency Is at present needed.
There Is an abundance of money for every
one that wishes TO borrow, provided he
has something valuable to put up as Sc
curity.
i ais is the common and fatal error OF
the day. There is an abundance OF
money for every one that desires TO Dor
row, provided he has something valuable
TO put up as security" That is. provid@i
he has United States bonds. or first mort
gage railroad bonds. or the bonds of some
large city or some other gilt-edged Sc
curity that Will sell in a stock exchange
the moment the auctioneer calls for a
bidder How many countrymen. farmers
or storekeepers, have any of these? Not
one In one hundred thousand. yet they
own vast proportion Of the wealth Of
the country and do an Overwhelming
majority OF the business Of the country.
The Suns statement is equivalent to the
statement, mo person can borrow money
Notwithstanding the giut of il. unless
he has some Of the gilt-edged securities
named above.' and that is the literal
truth. The case then stands thus. there
Is an abundance of money for all who
nave collaterals to put up where they
wish TO borrow, but there is no money
Tor those who have only farms and farm
stock. or the credit of country merchants
10 put up. That is the exact state of the
case the Baltimore Sun refined IL cor
iec'iy' ana now we ask the Sun If II
thinks a state of legislation which brings
about mat condition amongst the people
is Il good one?
for our part, we say il is the most |
atrocious and grinding state of TYRANNY |
that any civilized people were ever com |
PEELED 10 submit to.
In the commercial centres, where the |
collaterals We have referred to are owned
they have really little or no use for
money. Business then is all done nv
checks, which transfer credits. The ac-
tual money lies idle in the vaults of the
banks, the collaterals being taken by the
banks 10 secure the credit that is given
The borrower on their ledgers.
IL Is In the country that money is
wanted. The countrymen lack the city
facilities for transacting their business
with checks. They must have actual
money or. what is the same thing for
heir purposes, bank notes representing
money mat they can pass from hand 10
manu- Inc system We have then confines
me representative money we have TO the
'ities. where there is little need for
money. and produces a glut of il thore
while II denies all representative money
% the country where IL is needed and |
orces the countrymen to transact their
'"s'hess win actual money. of which no |
me ever contended that there is enough
IL Is not 10 be aided in its work by the
proper Substitutes for money.
we cordially sympathize with the conn |
T people In their demand for moro
money Denied, as they are. all the
privileges OF banking. we are not sur {
'rised that they should rebel against the
Unjust condition that is forced unon |
mem. Iheir remedy, though. Is not in de- (
aseu SILVER dollars. That Will only /
make their situation ten thousand times 1
worse than II is. Their remedy is in I
hooifying the National Bank act so that {
hey may open their local banks where
yer they have business enough 10 Justify a
ne whose notes will serve them as a !
Medium OF exchange. In this way they
'iu OBTAIN the money which they need c
nd are ntitied 10. a
mere Is considerable apprehension I
nat II local banks are allowed TO put S
Ut notes irresponsible concerns WIN
Ut them out and allow them 10 perlsb
a the hands of the public. We believe
ais is no more than stalking horse va
al In Virginia before the war an adj |
irabie system Of State banks. which {
ave the people all the currency thev
eeded and their notes were as SAFE a. d
hose OF the Bank OF England. The svs,er, I
AS this; We had parent banks AT RIB I.
'ohd. which established branch banks a. G
u points in the State where there Wa c
's'nsss enough to justify them. In th,. !,