The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-07
A FALSE AND A SOUND VIEW OF 1T.

Mr.. Rayner, Of Maryland, speaking
against the repeal of the 10 per cent. tax
on the issues of State banks. said some
very true things. For instance. he said:
When we reach a certain point in the
increase Of our currency, the point when
the supply Is equal 10 the demand, tell
me, because i want to know VINO Is Dene-
flied by increasing the supply Mheh we
reach the point of stability OF prices, or q
currency that expands with the wants Oh
industry and contracts. when there Is no
further requirement for It,, tell me, seiect
s sur borrowers or lenders, who could
In the slightest degree derive any adNan-
tage from an increased circulation mat
finds no market. has no outlet, and per-
forms no living function.
With the exception Of periods OF panic
and disorder / never saw the time When
n man could not obtain all the gOOd
money he wanted IL he had an equivalent
10 give for IL. Rates of interest are al
ways low when there Is a certainty or
payment. What makes high rates OF IN
terest In distant sections of the country?
The uncertainty of the payment and the
ineufficiency of the security; not the
legitimate demand for money. You may
incorporate banks at every crOss-road and
issue currency from every. farm-yard II
IL Is good. II IL is convertible into coin, If
II Is secured and backed by a reserve; II
viii rever expand beyond the absolute
necessities Of trade.
Here Is a case Of a man with only half
knowledge. What he knows he knows ac-
curatey, but he knows only q part or
the case. Mr.. Harter, of Ohio, has fuller
knowledge than Mr. Rayner, and he put
his finger exactly upon the raw spot
when he said. in the same debate: 'rhe
trouble of the country was not that IT
suffered from an insufficient volume of
l,tt
currency. its innexibility and inability TO
perform promptly the purpose of money
at the places where II was needed"
There is the point of the whole case. All
that Mr.. Rayner saws is true but the trou-
bic Is that a national currency, from It's
very nature, refuses TO go into the by-ways
and highways. and confines itself to the
commercial centres. The consequence Is
that owners Of property throughout the
country who are entitled TO credit, being
unknown 10 the managers Of the national
banks. are totally unable to obtain ae-
commodations at bank. Stick pin right
there. Mr.. Rayner. Think on that fact
until YOU understand its full import. and
YOU will then understand The currency
problem You do not understand il now
and you never will until you get it well
into your mind that the present system
subservts the purposes Of only a fraction
OF the population. while what is wanted
IS a system that spreads itself like the
air and sunlight over all.
There is hut one money, which Is coin
and the best thought is rapidly concluding
that gold coin is the only coin that is
true money. And for this reason: Silver
and gold may be started at parity, that
!. II. ranking twenty-five ounces Of silver
and one of gold as being the same Sup
posing that TO be now the true market
relation). but they will part company be-
cause Of the differences between the annual
supply Of each. Should silver Gas seems
probable) be supplied in the larger guam
tity. then silver will depreciate In value.
and twenty-five ounces Of * VIII no longer
be as valuable as an ounce OF gold When
this occurs what difference Will there be
In principle between silver dollar worth
less than gold dollar and the note of
State bank. Absolutely none. To continue
TO perform the function OF dollar it
needs 10 be always rcdeemable In a gold
dollar. and, IL provision is not always
maintained for redeeming it in a gold
dollar gold will go TO a premium as money
and disappear. and silver viii become the
sole money. We see this proved by the
necessity the Government feels under 10
keep itself always prepared to redeem
the silver notes with gold coin. We re-
peat, then. Rat the best thought is rapid
ly concluding that gold is the only coin
which win answer all the functions OF
money.
Now. We freely concede that there is
not enough gold TO perform all OF moneys
functions II every transaction were one
OF sale where gold was the thing stipu-
lated for. But mans experience teaches
that current promises TO pay money are
1s,ak - effective for working exchanges