The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-23

| commodities. Unuer tue oiu system ~,
the note. but also paid a premium, ID
addition for exchange on New York
| losing both ways: and such would agair
the result II tnese Wbch od forS
One objection to the present system /,
| that the depositors are not sufficiently
secured: under your proposed system
neither the note hoider OF the deposition
| would be safe.
| Richmond. by reason OF her geograpfii.
| cal position. is distributing centre for 8
large territory; she can't afford e
monkey with local currency: she can
/ doing business; she must be abreast Of the
| times. her commerce must not be fet.
tered with State bank currency lImita-
| tions her business must not be restricted
| and hampered by local and State Issues
| petty currency, good to-day and worth
| less to-mOrrow-she wants a currency
good all over this broad land Be.auss
| our people used State bank currency. witt
| it's many disadvantages, before the wal
| is no reason why they should use II
now. The people OF Abyssinia once used
salt, of Africa Shells. and Of Virginia
! other commodities-is that any reason
| why we should return to these primitive
| obsolete and antiquated methods thai
| have long since passed away?
You attribute the increase OF individual
| wealth TO the present monetary system
j think the aggregation OF wealth Is
| caused by a system OF unjust leg station
| natlonaD, giving favored classes monopo.
| lies through control of production and
the markets, in other words-Protection
| There seems TO be inconsistency In
| your position, incongruity In your argu.
| Inents, when you SO strenuously oppose
the free coinage OF silver. which, by your
own conclusion, would al least make
a piece OF metal stamped dollar worth
| lntrinsically fifty cents; and your advo-
| cacy OF paper issue worth intr.nslcally
| nothing, and yet based upon this same
| silver dollar and upon stock notes" OF
dummy capitalization!
We are Informed that during the gen.
eral suspension, In 1878 that specie be
| printed their own currency-"the butcher
| the baker and the candle-stick maker
and that then "shin-pasters,' as they
| were euphoniously designated, were OF Sc
common n quality that after being ham,
died some time they literally "stank in
the nostrals Of the people" and If put
away In bulk In close place would
| actually decay. Do we want any such
VIE stuff In circulation In our midst?
Mr.. Editor, you are not subscribing the
interests of the people OF this community
In advocating State bank currency unless
under congressional restrictions and gov
In his pocket unless it is good anywhere
and eyerywhere-let us not exchange the
golden apples Of the Hesper!des for what
may prove to be apples OF Sodom.
III Jul iSbur VI the lllli gDu ray ih'
Democratic party land | presume you are
speaking for yourself as welD wish TO see
all money consist OF coin, and that coin
which the rest of the civilized world has
its business" Now this is sound doc
trine; no paper currency In this, no
strings necessary to hold this currency
elastic or otherwise. How do you recon-
Gle this propaganda with your State
bank currency-scheme manifesto?
II you have abandoned your paper
scheme and taken up this solid basis, ac-
cept my congratulations. But in writing
should, go to the standard authorities on
the subject discussed. In this connection
Adam Smith, in his Health Of Nations"
lays down this doctrine:
The widest experience shows that no
man. or set OF men, has ever had power
to make unrestricted issues OF paper with
out abusing 1t; that is, without Issuing 1t
in inordinate quantities To sup
pose that they should endeavor, by care
fully limiting their issues, constantly TO
sustain the value of their paper, would
be to suppose that they should be ex-
tremely attentive to the PUBLIC Interests;
and extremely inattentive to their own.
The history of State banks has proven
that they do not show "inattention TO
their own interests" The numerous sus-
pensions of their institutions prove this
assertion.
Adam Smith further says: "a paper
currency is not in sound or wholesome
state unless first, means be taken 10 en-
sure that each particular note or parcel
of such currency be paid Immediately on
demand and unless, second, the whole
currency vary in amount and value, ex-
actly as a metallic currency would DO
were the paper currency withdrawn and
coins substituted in its stead.
and IL Is impossible to realize otherwise
than by combining the issue OF paper to
a single source.
Newman. In his Political Economy"
says 1.-The basis of the whole system of
credits is mutual confidence so long as
men put their confidence In notes or
bills Of exchange, etc, they may form
A currency good only locally would not
inspire this essential confidence,
But let us see what those who have
lar business under discussion say about
it-this is experience, not theory, actuaLl-
ties. not localities | refer you TO the
proceedings OF the Second Annual Meet,
ing of the Virginia Bankers Assoc alton, y
recently held IN this city. Mr.. Byrd, one
of the members, in speaking OF the old
State bank system, said: THE great and
inherent difficulty about this system or
banking was the small amount of specie
kept for purposes OF redemption. Ihere
was a constant struggle gong on TO Keep
the notes at par and prevent run lor
purposes OF redemption
Again he SAYS: ION several occasions
speaking of the management of the old
Bank OF VirglnaD, In company win
practically ali the banks in the United
States. the Virginia banks were compelled
10 suspend specie payments. sometimes,
it is said a wealthy man could terrorlze
hts bank by buying up It's notes ana
presenting them for redemption, and COM
pei it TO accede to his wishes.
DO we want any of this autocratic DO
ings with us?
Hear what Mr. Hardy, another member,
says: >
''They uhe broker or money changer
oharkG Of hank In
considerable quantities and demand pay
ment OF the bank in currency. The banks
would always pay them mot in gold, mind
YOU in currency OF other pahRs o II t nay
them in their own notes, and the notes
were accepted without any objection; but
invariably, in the course Of hall or three
quarters of an hour, here would come an
other lot by another messenger. who
would demand currency for them.
J, was a frequent occurrence in the bank
in which he was employed tgiVins the
experience of one or the members VINO
banks). as well as in other State banks,
for the teller TO make some excuse Tor
leaving his counter for few minutes
whilst messenger was sent OUT 10 t an
other bank with a request 70 loan little
gold to carry them through
This gentleman also states: Whenever
those notes went beyond the confines OF
our own state they mere , fber.afmy a. tbat
anv one who has experienced the adyan-
tages Of the present system OF currency
which we haVe-when note Is Just as
good in Maine as it is in Californ a-would
Scarcely care about going back 10 an is
sue, which, a. hundred miles away from
home, would be az a discount
We think the quotations from standard
authorities, and the experience of praeti-
cal men, ought TO satisfy any one that
the scheme OF State bank currency Is i'm
practicable and ineNpedient
SO far as the nice table OF figures you