The times. [volume] (Richmond, Va.) 1890-1903, 1895-06-07
HOW To SECURE SOUND FINANCES
EIGHTH AND LAST ARTICLE.

EbtHIH AND LAST All ~ In
Those who oppose system Of local
State banks argue that If a man in the
country has anything to sell he can al
ways get the value of it in the national
coin or the national currency. We take
in the entire scope Of the argument con-
tanned in this suggestion, and we make
this reply to 1t.
1t must be borne in mind always where
this subject is under consideration that
there is a perpetual. never-ending drain
on the national coin and the national
currency at the commercial centres. All
Of the national coin is good there at its
face. and since all of the national curren-
cy, whether national bank notes or the
government notes. have the government
credit behind them, all of it likewise is
good there at its face. All Of the national
coin and all OF the national currency
are, therefore. welcome at the commercial
centres. and there is consequently per
petual drain there on all of IT. This is
demand which is automatic also. increas-
ing as it is supplied.
The spectators who aim at living by
gambling all congregate about the con-
mercial centres one Of these has
thousand dollars of his own money. lie
borrows 5000 from a bank and buys
hundred shares Of stock with the $4,000.
The bank takes possession OF the stock
as collateral security for the 5000 adj
vanced by IL. II the stock goes down
nine points. the bank sends 1t to the stock
exchange and has II sold and pays itself
its 5000, turning over 800 less commits
sons and interest TO the Spectator II
the stock advances ten points. the specu-
lator sells 1t pays the bank its 5000
and has s2ooo where he had only $1,000
before. There is a vast army of these
gamblers that hang around every trading
place. ready TO borrow, for gambling spec
ulations in prosperous times. all the
money the banks have TO lend. The
Tanks at the commercial centres are
consequently perpetual bidders FOR all the
national currency and money to supply
these borrowers. and the borrowers in
crease as the banks have money and are
able 10 lower the price at which they viii
let the gambless have It, 1t is an au-
tomato AFFAIR that makes the gambling
spectators increase as the banks have
more money and which makes the banks
increase their demands for the national
money as the gambling spectators in
crease.
Now. while the countryman with some
thing 10 sell can always get its value in
national money or currency when he gets
II to the place where the money og cur
rency IS. his local bank or trading place
is destitute OF that money a great part Of
tho time by reason of the drain on it
which the commercial centres maintain
at all hours of the day and nisht 1t is
not sufficient for the prosperity Of a
community that Il can take its products
away when they are ready TO be disposed
OF and get money for them. In the in
terror Of country community. where
business is done with cash instead Of by
checks the cash must be always In the
community 10 meet the demands for
rangemcnts have TO be made 10 import II
from distance before transaction
can bc effected. men lose heart In the
enterprise. the opportunity is allowed to
pass. and the business is never done.
The facilities for doing business must be
always at hand for business to be done
actively and effectively. and 4 clog Of the
mos, serious nature is put upon business
when the tools for doing it are away
from the place where II is to he done
ana must be hunted up and brought
there.
Now local bank that issues a local
currency for a neighborhood has that cur
rency always outstanding in that neigh
borhood. because people elsewhere dis
trust Il and will not have It, and the
people consequently have an abundance
Of cash always spread out amongst them
for the execution OF any project that re-
auires cash. At the moment when tho ma