The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-10
Enr,i n RANKING and Currency.

Mr.. Editor: Whilst admitting the truth
Of my statement as to the non-lssIe OF
notes by English banks. except TO the
limited extent reserved TO banks issuing
notes previous to 1914, you seek 10 min
imize the importance Of the bearing
which this admission has upon your ar
g1lment IN favor of banks of local issue
here, by stating that this limited issue
ornollnts TO S75.00000, thereby leading TO
the inference that this amount Is added
IN the currency of the country III the
shane of notes. THIS, however, Is not so,
az i'm arriving at that amount you add
the issues of the Scotch and irish banks
IN tho total issues of the old English
hanks of issue. This Irish ana scotch
issue to the extent of over SRUo'"0 IL
precisely i'm the position or the issues OF
The Bank of England, beyond the Ho'eo'o
issued by that bank against the Govern
mont debt TO the bank. Il is covered by
tho deposit in the vaults Of the scotch
and Irish banks Of an equivalent amount
III gold coin or bullion. and therefore Is
not an addition TO the circulating curren-
cy. but merely a substitution OF paper
for gold coin, as n matter OF convenience.
Deducting. therefore. this sum from the
note issues of the banks G'5JW,OC)
leaves only the sum OF $53,OOOOo added
10 the circulating currency OF England by
out. as TO be almost unappreciable IN
effect. The total currency circulating In
England is about S7OOC00,000. or this
$50 coo, 900. or barely five per cent, is note
circulation. uncovered by gold deposited
to meet IL. Such a small proportion or uh-
covered notes would not supply the de-
mands of those who ask FOR state DaIh
issues, or even national bank issues III
this country The game OF ighting Tor
candle. Again, sir. cor slider Row even
this small amount OF notes is secured.
The banks issuing these notes have PAID
capital and unimpaired reserve together or
over $4,000 900. all paid in hard cash, ana
beyond this they have a subscribed cap
ital Of at least 81, 80 10000. And yet, with
a security such as this for the payment Oh
the small note issue of S33,0OO,WO, that note
issue is of purely local circulation anu
is at a discount anywhere Ill hnglanu
outside of the locality OF its issue. L nave
paid one per cent. for the cdShius Vi
these local notes within one hundred mles
~ the place of issue, and yet as ! nave
shawn. the payment Is secured beyond
neradventure. In the face of such an eN-
nerienco how could IL be possible TO keep
state bank notes at par, wheh lSsueu 81
tho rate of - for 81 OF subscribed capitai :
Vhere Is only one sound system OF pahh-
ing and currency, and that IS 70 pdae ~
upon hard gold, and then leave the peop ,,s
who make banking a business 10 rldhase
if In their own way, without interference
from Government They VIII take care ior
their own credits sake and Tor their
own profit to conduct it so as TO give tn ls
greatest facilities with the minimum
amount Of risk ,.,,
Again. Mr.. Editor. | say we want pa hh-
ing facilities, not more money OF %Ul s ~
still more promises to pay ana peg
of YOU TO exercise your powerful au.o-
cacv IN favor of this, rather man Oh !ne
ebiroora NJ local issues. A sound currency,
based ON gold, and free banking without l.o.,
government interference or superVieloh,
will. with our unlimited resources si "
no all the stability necessary TO coh.hlanu
- ,rtfrotted confidence of the World'
and. given this. there viii be no more Ie
treasury raids, and with free trace ,..t;,,n ~
more idle working men "ho "i'
70 work for reasonable wages. ,r,so~
" WIN !. f.. JACKSON.