The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-11
now To SECURE 4 SOUND cUHRfNc>
FIFTH ARTICLE.

FIFTH ARTICLE.
With this article we close the series
We designed writing upon this text. We
commence this with a brief resume oil
the principles discussed. as follows:
Business Is exchange Of commodities
which is effected by exchange of cred
its.
That credit Of $1,000 being lust as
valuable as commodity worth $780,
when a commodity Of that value
Is given for credit of Sl,"w
something is obtained which can
be exchanged for another commodity
worth $1,000, and as that is ,he most
convenient way Tor erecting the OK
changes Of commodities, business adopts
that as its method for making The OK
changes;
That the chief part of money in bust
ness is to furnish standard o. value
that is. a basis upon which commodities
can compare themselves with each other
and ascertain the terms upon which they
are TO be exchanged,
That money. nevertheless, is necessary
for a very large bulk OF transactions.
such as retail TRANSACTIONS in cities, the
employment of Iaborers. and the trans
actions OF people in the country and
that paper currency can most beneficial
Is supplement money IN these, but 1t
must be a paper currency resting pom
private and not upon public credit; and
That this is the scheme of the Con-
stitution. and OF true finance as well.
There are two great reasons why
paner currency should not rest upon the
public credit, either of which is all-sui-
ncient. The first IL that when 1t does.
the people inevitably come by degrees
10 look upon II as being money itself.
a monopolizes all the functions OF
money, and thus lays the foundation Tor
the inevitable panic. like that of 1913,
which comes along in due time TO over
throw all business and cover the land
with wreck ana ruin.
The second reason relates 10 the In
capacity Of such a currency. under mod
crn conditions OF quick transmission of
intelligence and transportation of freight.
10 serve the needs of the people Who
dwell away from the con- n,r 81 ;eni. es.
The cities-the commercial cent .es-can
get along very well with little or no
money or curre.cy. They can transact
all their affairs with checks on tpc hanks
and on the merchants. But this IS OF
so in the country. The people there
are Obliged to have actual monty, or
its representative a paper currency
that will pass amongst them. IT Is OF
no consequence what IS the character OF
this paper currency, II 1t possesses the
confidence OF the people who are 10 use
IT. and viii pass as and for money
amongst them. THIS Is 'he ail-lmportant
fact to be noted. The country people
must have paper currency, redeemable
on demand. and it is or no conscdU' ice
TO them who issues II, so that hey
have confidence in 1t. and II Will pass free
is amongst themselves, ana be paid. NOW,
II the paper currency is issued upon
the credit OF the Governmrnt Of the
United States. all Of it, whe.ler designed
e circulate in Maine. in Texls, o. IN
California. will pass as and'Ior money IN
all the commercial centres OF the United
States That being so. tho commercial
centres will always be bidders for all OF
IL that they can use. Eut jus; a. thev
can get II. customers Tor II VIII be
always appearing The banks arc ON
one side OF the street in the commercial
centres ana the stock and produce ex-
changes arc on the other side. The
gamblers and spectators come 10 INC
commercial centres to borrow the money
20 speculate IN stocks ana farm products.
50 that the thing becomes automatic.
The banks draw the money from the
country FOR the use OF the spectators,
and the spectators Increase as the banks
can get money. The banks AT the COM
mcrcial centres would therefore. draw
away from the country all the currency
that may be issued on the nations
credit. never mind how much II might be.
You might, therciorea make what Is
called the per capita" quantity OF
money or Government paper currency
what you pleased. and II would all come
10 the commercial centres for the use OF
the gamblers and spectators. and leave
the countrymen as destitute as they
now are A great evil flows out o; this.
iroprovident and wild speculations arc
encouraged. ana these lead up 10 our
financial panics and crashes. Money be-
comes etnormally cheap. too and COM
petition in legitimate business becomes
too great. and then men in the same line
- business pool their issues. snd form