The times. [volume] (Richmond, Va.) 1890-1903, 1895-11-16
MIX. SOVEREIGN STATES THE ERROI;
OF THE DAY.

OF THE DAY.
on the second day of the session Of the
General Assembly Of the Knights Of Labor
in Washington city during the present
week, General Master Workman Sover-
eign made his annual report, which con-
tanned the following passage:
In the first session of the American
Bankers Association held at Saratoga in
1875 the president of that organization
gave a description of how the banks OF
Massachusetts boycotted the farmers OF
that State 10 force a repeal OF the usury
laws by refusing their applications FOR
loans, and he wIttily remarked that the
rural districts came down handsomely
and that the usury laws were repealed
and suggested that the association might
take IA mint from his remarks. The or
ganized bankers have ever been "a boy
cotting machine. They have boycotted
every kind OF the peoples money not
forced by law to receive and boycotted
every class of citizens their selfish pur-
poses suggested, and at their session re-
Gently held at Atlanta. Ca, they turned
their batteries against the greenDacKs
and Treasury notes and demanded the
destruction of all forms of government
money not under their absolute super
vision and control, and insisted on their
right to issue and supply the people win
the currency of the country-a PROPOSE
ton which. If put into effect, will force
the industrial masses into absolute slave
~ to the mOney-lending classes. and VIII
enable the associated banks TO contract
the currency at Will. reduce prices. stag
nate business. turn labor in the streets,
foreclOse mortgages, and confiscate col
laterals until the liberties of the people
are gone forever and labor so reduced III o..
circumstances that organization, aslta-
ton, and readjustment Will be rendered
impossible This Is no idle dream ana no
stretch OF imagination. 1t can be read in
the history of every pauperized nation
that has passed away on the declivity OF
lime during the past six thousand years.
No better exposition of the Fundamental
errors Of vast number of people con-
corning the foundation principles Of
finance can be found than this. Mr.. Sow
ereign is. we believe, a mechanic, and he
has probably not had very favorable OPP
portunties for wide instruction in the
subject he undertakes 10 treat of; but we
find editors. professors. lawyers. members
of Congress. and members OF the United
States Senate making utterances identical
with those of MIR. Sovereign. so that the
surprising thing is not the source whence
they come.
Now, we undertake to say. and TO say
with the most absolute confidence, that
no bankers i'm the world ever yet under-
took and no bankers in the world ever
will undertake. TO put the slightest abridg
ment of any sort whatever upon the freest
circulation possible of anything whatever
that is TO operate as money or medium
OF exchange. The bankers business de-
pends absolutely upon the circulation of
money and the assignments OF credits.
II there is no circulation of money and
no transfers of credits, the banker has no
business His business increases just as
money circulates freely and credits are
transferred. That is the state and condi-
ton OF things out OF which his business
arises, and he has no business when there
is no such state. If Mr.. Sovereign only
knew II, an abundance Of banks is the
thing of prime necessity TO him and all
others who have nothing but brains. en-
crgy. and muscle. Mr.. Sovereign's error,
which is the error of Senators Stewart
Daniel. Jones OF Nevada and Of Arkansas
Mr.. Harvey (coin), and ali Of the school.
is in thinking that the transactions OF
the world are conducted with money Il. e..
coined money!. or its representative and
substitute. paper currency. ana that great
quantities are therefore necessary. This
IN the radical and the utterly destructive
error OF The whole class. But that is not
a fact. Business is done by transferring
credits. IL a man has a contract TO pay
money in which he has perfect confidence.
he had rather have 1t than the money
itself. because 1t is more conveniently
carried Having such contract. he can
always exchange IL for whatever COM
modify he wants just as well as he could
exchange the money IL calls for, II he had
that Consequently, when men have com
modties 10 part with. they always prefer
TO receive for them checks on banks. They
don't want money OF currency. They
want bank credits. II they got money or
currency they would Immediately deposit
II I'm bank and convert II thereby into
assignable credits. The business Of the
world is done. then, by transferable
| credits. and II would still be done in that
way IL there were IL thousand times as
much money and currency as tHere is.
Increasing money. then. will not Increase
.acirties for business. Business Is Gonc
with credits. and credits can be raised
against property--houses and loss or ex-
/ changeablc commodties-as well as
! against money and currency.
Mr.. Sovereign wants a great quantity
| OF circulating notes issued by the Govern
| meat but however many Of them tAsss