The herald., 1895-10-21
BETTER FINANCIAL SYSTEM
Jadgc r. NJ. Widneys Second Lecture Up
the Subject

JIdgc r. NJ. Widney's Second Lecture Upon
the Subject
judge r. M. Widney concluded his ex-
position of A Better Financial System
before the Church of the New Era at Illl-
nois hall yesterday afternoon. AT the
close of the address a general discussion
ensued, the nature of which gave evil
dence that manyssof tte audience had CIV
en- the subject OF finance much study. 1t
was pointed out that while Judge Wild
ney. had discarded the intrinsic walt of
theory of monsy, as far as domestic ex-
changes were concerned. he still held to
the fallacy that the country needed gold as
money for intern ational trade. 1t was
shown that American gold coin entered
foreign countries as bullion at the value
placed upon it by such foreign countries ;
that as a matter of fact London acted as
clearing house for the world exactly on
the same principle that the local clearing
house settled the balance between banks,
very little actual money of any kind be-
ing necessary. 1t was further shown
that during the recent financial crisis,
when gold had disappeared, the New
York banks issued certificates to the ex-
tent of $27, 600. 900, which passed as cur
an arrangement of international certlti
Gates could not be devised that would en-
tirely ohviate the use OF gold for interna-
tional balances. Even assuming that
such balances must be paid in cold the
fact could not force us to coin gold. for
as we produce gold and sil yer. presuma-
ply as profi:ably as wheat or pork or
could easily settle such balances IN gold
and all the more easily, that not using
it for domestic exchanges would have all
the more to Use for foreign trade.
Judge Widney's plan would continue
the present system of tanks, which he
argued would be a, cheap as the sub
t'easury plan, (which, he maintained, was
banking under another name. 1t was OBJ
lected that banks were continually fail
ing or retiring from business. showing
that there were too many such institu.
tions; that government banking would
maintain only the numbar of banks that
were needed 10 transact efficiently the
necessary buiness that instead of a doz-
ell competing banks, with separate rents,
salaries Tor presidents, cashiers, etc, ,rgov-
erment banking could be transacted in
one building, with one general pres id mt
and a great decrease In the fixed charges
and number of employees. tho saving in
such Il system being shared IN by the
whole people, instead Of flowing into the
pockets of u small and useless body of
money mongers Gn1 financial manipula-
tors.
Judge Widney stated that paper money
would De good Just for the reason that a
private citizen's note is good 70 the ex-
tent that the people belrve him able to
pay. 1t was then asked is the promise
by the government to pay, the feature
that invaidates paper money, or is il not
rather within the power of the govern
ment to declare that paper note is mon
ey. without the necessity OF redemption
in any designated commodityY
The Judge replied that most people be-
lieve, whether rightly or wrongly, that
gold Is the best money, and it was for
this reason that he included this metal
IN his system. 'One kind of money is
UPON.