The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-16

OF IL may be for time. inevitably iea'S
In the end to disaster, while acuoh
founded on sound theory inevitably ieauS
TO desirable results. however unfortunate
first ventures may be. The fact 49, there
has never yet. In the history Vi '"o
world. been but one true and sclchuhc
theory Of paper currency pat INTO prac-
teal rsc by a people. and that was abro-
gated and overthrow just at the moment
whom Il WAS begnning TO eXfoliate ana
chow 10 its patrons the blessed results II
rad in store for them. \ brief historical
review OF the paper currencies the word
has had throws great light upon the case.
We may pass by the early and feeble
efforts OF such institutions as tie Bank
OF Venice. the Bank Of Geneva, the Bank
of Hamburg and some others. They con-
tain no more than the germs Of our MOD
ern Ideas about currency. so We may pass
by John Laws eruptic spasms as too
trining for comment in this connection.
The first real paper currency for ma
ton that the world had any experience
of was the French assiquats OF the lat
ter part OF the the last century. But that
does not really fall under the head OF
paper currency, because IL was, In TACT
made the money Of the country, ara
brought on France all the ruin that IN
evitably attends any experiment OF the
kind We had abundant and equally
ruinous experience Of the same sort IN
this country prior to the adoption OF our
Constitution in 1859.
We may also discard from view the
experiments Of all the other countries or
Europe. except england. There IS MOTH
ing in any of them to throw any light
upon the case England. though. has,
during the past two centuries. been grad
uaIly building up consistent ana intel
lgcnt system Of a paper currency, con
sidered correctly as a currency accesso-
~ TO money, but. as we have already
sufficiently found out. she has built 1t
upon the false theory Of Governmental
currency for all parts Of Great Britain,
and. therefore. containing the seeds OF
the nsidious disease that must destroy
it periodically If her institutions did not
accept as part of them the soleCism that
there is d power under the law greater
than the Jaw, that can set the law aside
whenever is pleascs.
We come, then. to the only scientific
experiment which has ever been made
with paper currency. and mat is the
scheme which was promulgated by the
great and wise men who formulated the
Federal Constitution, with all the lights
which the history of the world shed
upon the subject. Recognizing, as they
did. that for Government TO interfere at
all with the matter was concession OF
the Socialists theory of govcrnment-the
worst calamity that could bcfall man
they confined Governments connection
with money to coming the precious
metals and regulating the value Of the
coins. But they had no sooner set their
scheme anoat I'm the United states
than accident brought the most pow
erful enemy that the scheme had
to position that enabled hlm TO
shackle it most disastrously. when Cen
eral Hamilton was made Secretary of the
Treasury by General Washington, IN
his first administration. Hamilton, ovai-
ing the Constitution, grated upon this
Governments financial policy the idea
that Government should control the cur
rency, and the idea became dominant
and ruled the country for more than
fifty years.
In 1896 however, Andrew Jackson sue
ceeded in cutting it out of the side of
the body polite when he beat the efforts
of the Bank Of the United states to Sc
cure a re-charter, ard, from that time
until the war came ON, the country mad
a real opportunity TO see and enjoy the
great blessings that flowed from perfect
ly free banking, when men could make
and pass from one TO another contracts
that had money as their objective points,
with the same freedom as they made
and passed contracts that had trace
chains for their objective points Let any
man recur to the history OF this country,
from the panic that the Bank of the
United States forced on the country IN
1887 to the year 1861, and compare 1t with
the history of any other people at any
other time. Never was any people so uni
Versally content and never did any people
prosper as did those of the United states
in that time. There were no very rich
men, but all men were well of. and the
whole face of the land was covered with
gladness and prosperity. We know there
were some wildcat banks in the Vest at
that time, but business and crops were
correcting the evils in their administra-
ton, and they would soon have worked
themselves up to a sound position. Ihe
war came on, with its attendant viola
lions of our foundation principles; the
theory of our Constitution respecting
money and paper currency was set aside;
the old and exploded theories OF currency
issuing out of Government were re-
adopted and We have had nothing but
confusion, complaint and disaster ever
since.
When we put Socialism and cheap
money behind us, and allow all men TO
again have their natural liberty to make
and pass any sort of paper contracts
concerning sound money that they please.
we will have revival OF our ante-war
prosperity. But We will never have II
until we recognize gold coin as the stand
ard Of our money, and the right OF I'll the