Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-03-23

RctlrinK the GrecnbnCk s.

Many experts In finance have held ana
stu hold that IL the Treasury Depart
ment. upon redeeming greenbacks ana
Treasury-notes, would destroy them. there
would remain no direct way In which
gold could be withdrawn and the gold
reserve depleted. IL would seem at any
rate to be natural inference that II the
government had no outstanding demand
obligations Il could not be drawn upon
for gold. We find. however. that even
this inference Is not conceded to be true
by the leading Republican paper In ono
which we suppose we might speak OF as
an organ OF John Shorman's. That paper
speaking OF the assumption that In the
case supposed the government would be
free from runs upon its gold. argues as
follows. 1t is the Cincinnati Commercial
that makes these points:
Would that stop the foreign shipments
OF the yellow metal? Would that check
the shipments Of our securities from Eu-
rome for sale in our markets? Would That
increase exports of American produce!
Would that check the boarding or gold AT
home? Would that assist the banks IN
meeting the demand for the redemption
OF their notes IN lawful money "OuiN
that assist the banks In maintaining their
reserve? These are questions 10 be an
swered intellgenty before assuming That
the withdrawal and cancellation Of green
backs and Treasury-Dotes, and the SUD-
stitution therefor of natiOnal-bank notes
would remedy the currency difficulty. IL
certainly would relieve the government
but IL would not meet the demand lot
gold. This Is caused by depression ana
distrust, and this dlstrust would be ag-
gravated IL the government should with
draw its support from the outstanding
currency"
The Commercial does not content itself
with the interrogatories above quoted, Dut
proceeds 10 fire other questions at the
men whose theories II is combating. We
quote again:
1--WE would ask, the demand for gold
continuing. whether the banks could meet
It under the conditions that have pre-
vailed and whether the banks, II required
TO hold a reserve in gold, could sustain
drain upon them for that metal; ana
whether IT, in their opinion, the govern
ment had been out Of the banking busi-
ness entirely during the last year, tnefe
would not have lately been general sus-
pension Of specie payments? The banks
have not been called upon to pay out
gold. They could not be called
upon TO pay out gold so long
as they have a dollar of lawful
paper money In their vaults. Further
more, it may be asked whether. II the
banks should resort 10 silver they WouIo
be able to meet a panic demand. is there
silver enough to take the place Of gold
in an emergency OF that kind? HOW
much silver coin do the banks hold? Most
of It is in the Treasury Department rep
resentine silver certificates. Even this.
II withdrawn through the presentation OF
silver certificates. would not suffice.
"As matters stand. the currency is sat
isfactory TO the people and for the reason
that every dollar OF 1t is backed by the
government, whether gold silver or pa
per"
From all the considerations thus pre-
scented our Cincinnati contemporary ar
CUES that the withdrawal Of Greenbacks
would not solve the difficulty, but would
rather aggravate 1t. II then names It's
remedy as follows:
Let the government provide revenue
from customs duties equal to its wants,
and the demand for gold would cease.
That would inspire general commence,
n would start the wheels Of industry,
II would give employment to idle wage
carners. il would enlarge the home mar
ket for agricultural products. 1t would IN
crease railroad traffic; this would enhance
the value of railroad securities, and Tor
eign investors. instead of sending stocks
and bonds home for sale, would become
purchasers Thus the balance of trade
would be in our favor, and the yellow
metal. whether in the Treasury or the
banks would be permitted to remain
and private boards would soon be emp
tied.
1.-THE best way now is to turn attention
To fundamental difficulties; ii Is no time
To apply mere makeshfts; 1t Is no time
TO tinker with the currency; If changes
in the latter are needed, these may best
be made when the general prosperity OF
the country shall get into the upward
and onward road
IF the broad shoulders Of the govern
ment should be removed, banks would
look In vain for help in times Of trouble