The times. [volume] (Richmond, Va.) 1890-1903, 1895-07-30
ITS NATURE Is TO BE LOCAL AND NOT
GENERAL.

Some weeks back we copied from tho
Journal of Commerce. most excellent
letter written that paper by Mr.. James L.
Harrison. OF Danville Va. CT the necessity
OF repeating the tax on the issues OF
State bank notes Mr.. Harrison now
writes enother letter TO that paper in
which he sketches plan for a system
OF State banks 10 which we object be-
cause ii puts restrictions upon them that
Trey ought not TO have. while the Journal
of Commerce. In a lengthy review OF his
letter. objects N it because his restric-
tions are nowhere near those that II
would impose.
There is nothing more surprising to us
than that newspaper so sound as the
Journal OF Commerce is on most ques-
tions OF political economy should be as
far "off" as ii is on the important ques-
tions relating TO what IL calls Trusts"
and on questions relating TO a paper cur
Jency
The burden Of its fsma:Ns on Mr.. Har-
risons letter is that the country wants
a paper currency which is uniformly
Sound and everywhere equally current"
Now we insist that the man who has
that idea In his mind is fatally deficient
in comprehension Of the nature and func-
lions Of paper currency. We want tho
money of the country to be uniformly
sound and everywhere equally current
but it does not pertain 10 the currency
that the people use that it should be
thought Of the same way in all parts OF
the country. No man VIII ever compre-
bend the case or be qualified to discuss
IT, until he learns this radical and fOunda-
zion fact. Whilst he thinks that a paper
currency must be thought of as well III
enc end of our immense country as i, Is
thought of in another end Of IT. he thinks
there is some analogy betwccn the nat
ture OF paper currency ana money, ana so
long as his mind is bofoseed by that error
1t is useless for him TO discuss plans and
advance theories They are all built upon
rnsubstanial foun1at'oas. and all of them
must topple over and fall.
The money of the country is The stand
ard OF value of the country. and it must
therefore be exactly the same IN all parts
OF the country. or we would have people
talking in one place of horse worth one
hundred do'lars and. in ar)ts'r place. OF
meaning to express two entirely different
ideas. We should therefore have nothing
but tumble and confusion II that were
the ease IL is essentially necessary
therefore that the money - the country
snail be exactly the same In ails PARTS
OF the country. BIT a paper currency IL
Ing but a convenient machinery by
which people transfer credits.
II is in no way different I'm its nature
from a check. IT may Toe fodnlci ola Tro-
perty as well IS on coined money. II
founded on property. whenever one
Of the notes is passed from one
person TO another. an interest in the
property on which II is founded is
passed from one 10 the other. and. with
coined money enough 10 meet the few
cases wher, a person prefers TO have
actual coined dollars TO an assigned inter
est in property IL answers all the pur-
poses of money In the regions where II Is
known, Just as well as If ii were founded
on actual coined dollars. Its function.
therefore is 10 transfer credits and 1t per
forms this function just as satisfactorily
and just as well although its operations
ere confined TO "A small region as n he
whole territory were IT'S domain. Its ma
ture requi'e indeed. that its operations
shall be confined to a limited territory be-
cause its value as an instrument Of credit
cannot possibly. In the nature of the case.
20. people must have liberty TO transfer
be widely known. To get the fun bene-
Mt OF what their resources entitle them
their credits by notes as well as by
checks But II restrictions are put upon
them in transferring credits by notes.
they are cut off from the greatest OF all
their resoprces; and are hampered and
perhaps destroyed when. II left alone.
they would be able to tide over ;heir diff
aculties.
Mr. Herbert Spencer. in one OF the
most lucid essays he has ever wrist m,
entitled state tamperings with money
and banks" has discussed this subject
as few subjects have ever been discussed.
and be has laid bare all its foundations.
lie demonstrates that there is but one
sound financial principle. and that Is to
have coined money OF fixed and unchange-
able value and to allow all men, then. TO
Issue their promissory notes to pay this
coined money as they please. ! ne issue
of the notes 10 an assignment OF an inter
est In their property. and this is just as
effective for transacting business as de-
livery OF coined money. When the State
kscps its hand of and the people are al
a>vsd 70 exercise their natural liberty