The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-10
HOW TO SECURE 4 SOUND tth-
EENCy FOURTH ARTICLE.

The uniformed reader who mas ioi-
lowed the narrative OF our third article
viii naturally ask. how does 1t come
about. If our Constitution Intended mat
there should be any desired quantity oil
paper currency resting upon private
credit but absolutely none resting upon
public credit that We have no paper
currency resting upon private credit,
and that all OF ii rests upon public cred
~ il Is undoubtedly an anomaly, OF
which We shall now give an account.
We owe the commencement of the per-
version TO that noble man and patriot,
but misguided statesman. Alexander
Hamilton.
The Government was framed ana start
Cd upon the right lines, and while State
banks existed before the Constitution
was adopted. and were left 10y it as II
found them, they sreatly increased as
soon as the people found out that by
leaving them as they were the trainers
OF the Constitution intended to encour-
age them. Hamilton had very little, If
any. faith in the idea which was involved
i'm this theory. lie did not believe III
the principle which Is at the bottom
of il, which we describe when we speak
OF local self-government. The trainers
Of the Constitution banked everything
upon that principle. Hamilton took very
little stock In 1t. lie was a centralist
and monarchist al heart, ana believed in
powerful central government, that
could compel all its citizens to do what
ever It thought best for their interest,
Just .as it would take care of them in
case they were as5ai!ed from without.
Hamilton knew that the most powerful
agency a government can nave for en-
forcing its win upon its people is mastery
and control OF that counirys financial
medium. Nothing more centrali2ing. moth
ing so effective in making the Federal
Government dominate everything else,
could be devised than obtaining for The
government the power TO determine the
volume OF the circulating medium. The
power OF sudden contraction OF IL, the
power OF sudden imitation of II, TIE
power OF deprcciating the money unit
these are powers by the side of which
all other exercises Of centralized SOW
ereignty become Insignificant. Under
such a system, the government is not
merely TO collect the revenues it needs
and TO maintain a unit Of values. as 1t
maintains a unit OF weight. and unit
OF length, and unit OF capacity. but it
is to attempt the task OF making every
body prosperous by regulating the vol
ume OF the currency.
When Hamilton came into General
Washington's first Cabinet. as Secretary
OF the Treasury. he came with tower
ing reputation for financial ability. The ma
TONS finances were In deplorabie state
and Congress called upon him for sug-
gestions for their Improvement. lie sub
mitted two reports upon the finances.
one Of which set out very deliberately
a plan for a national bank.
Hamilton admitted IN this report that
he had taken the Bank OF England for
his model. which, though private cor
poration. owned by private stockholders,
and managed by men appointed by these
private stockholders. had been so long
the fiscal agent OF the British Govern
ment that II had come TO be regard ID
ali over the world as a part OF the Foy-
eminent.
His plan provided that the capital
stock was 20 be ten millions OF dolilss.
and the Government OF the United
States was 20 subscribe TO onc-fifth CT
this. Subscriptions 10 the capital stock
wero 10 be paid one-fourth In coin end
the other three-fourths In per cent.
bonds OF the United States. The notes
that the bank put out were to be ;e-
ceivable in payment OF all dues to the
United States. Now. here was case
In which the bank. named by the act OF
Congress creating H. the Bank OF the
Matted states." was authsrized u 90