The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-08
TUESDAY. JANUARY 8. 1885,
-yy r,mrs. DOCTRINE REVIEWED.

..,o,s y, snn,vine his usually clear nina
=. a. a,femnt at understanding The
,v..,. c,,,rencv plan as he has been III
his very clever effort TO MAKE Jun VI 80
xs discussion OF the subject wouio p'VD"
hv have been much more satisia''oi'
than A. is in his letter publlsheh ny Us
o,sou,bare this morning. And thal ne
MAY know more of the matter wheh ne
rex. makes a the object of HIS SATIRE We
will let him into few views oil IL '""'
obviously have not occurred TO MIN 81
far
"a, commence by pointing out 10 Nh
Moore that ne has built his whole case
,ro, a foundation that ignores the most
elementary fact i'm trade and commerce.
and that Is that the very SmaiieS' p'o-
portion of the transactions OF ouSi"o''
are purchases for money. Business COLI
sists. not of purchases for money Out ol
exchanges of commodities. or purchases vi
commodities that are paid for by trans
ference of credits resting on commodlles'
Our purchases In Now York are paid for'
In me main. by our own products "hlch
we send there, or by credits IN Ne"
York resting on products of some otner
part of the country which we come into
possession OF by our exchanges WIN
those other parts of the country.
For instance: A country storekeeper III
south Carolina sells cotton that he has
acquired through his business transac-
,ions. In New York. and he Is paid for It
by a check on a New York bank. rms
gives him a credit In New York city upon
which he can check "A Richmond mer-
chant sells that country storekeeper
bill of goods. and Is paid for them with
a check on the New York bank account
The Richmond merchant deposits mat
check in his Richmond bank, whereupon
that bank has New York exchange 80
sell 4 Richmond merchant who owes Tor
goods he has bought in New York buys
that exchange, paying for II. perhaps,
with his own note which he gets dis
counted at the Richmond bank, and pays
his debt in New York with IT, and there
has never been dollar Of money used
in the transaction. The substance of the
case Is that the proceeds of some South
Carolina cotton have been brought under
the control OF dry goods merchant in
Richmond through the roundabout, but
absolutely certain. methods of commerce,
ind have been snapped in New York
for the dry goods that the Richmond
merchant wanted. At bottom IL was "a
of On fol
1t is by the infinite variety of processes
OF iris sort, commanded by commerce,
qhat our purchases in New York are
made and not by the direct process of
purchase and sale for money. If we paid
for everything we buy IN New York with
haustible money supply. But we do not.
Our business there consists of exchanges
of one sort and another. and not of pur-
chases and sales for money.
The money that goes to New York. then,
Is not money sent there 10 pay for what
We buy. 1t is money which New York
draws there by her superior power to
offer Inducements for il. A great part OF
81 consists of the reserve which banks
elsewhere keep agalns; their liabilities.
They find that New York exchange is as
good a reserve as money In their vaults,
and they sell this and also get interest
from the New York banks for letting IL
lie with them. The banks in turn lend the
money 10 gamblers in stocks and farm
products. the abundance of money in
a ,a thpgp a
buzzards collect at the carcass.
THIS would not be 30 II our currency
we're the issues of state banks. The New
York banks would not keep their notes.
and such reserves as the State banks
kept they would have TO keep in their
own vaults In coin TO meet the demands
that would constantly be made upon
dhem for the redemption of their notes.
We quite agree with Mr.. Moore that
the loss OF confidence which has spread
all over the country has a powerful in
nuence In directing money to New York.
but that is only another way OF saying
that II our currency were a State bank
currency We would not have the present
condition OF want of confidence. Conf
dence has been lost through the operation
OF national currency, good in all parts
Of the country" The greenbacks which
travel 30 smoothly from one State 10
another also Journey TO the Treasury
and drag out OF IL the Governments gold
reserve and that Is what broke down
confidence and brought on the country It's
present state OF paralysis. There would
have been nothing of the sort II our
currency were a State bank one.
We are quite unable to understand
how Mr.. Moore got the idea into his
mind than IL we had State bank cur
rency every man who got State bank
note would run TO the bank to have 1t
redeemed in gold. II the sound banks
which Richmond is fortunate enough 10
have were to put out notesl tomorrow
ne snye not the slightest lido that our
psaols would run with them . bank to