The times. [volume] (Richmond, Va.) 1890-1903, 1895-03-14

cfent amount OF IL to disturb the equi-
lbrium seriously. without at once put
ting up the rate OF interest and calling
attention TO his operations. Attention
once fixed on what he is about ends all
power to accomplish the object.
Mr.. Carlisle's request 10 the Senate
committee was a very wise one. for.
while there was no prospect that enough
of the worlds gold could be cornered 10
interfere in any way with the world
operations. still. he wanted large sum
OF gold paid down Immediately. The first
available supplies might have been cor
nered," and, for that reason, the bid
ders for bonds would take chance OF
this into consideration If 1t was known
that this large sum was wanted at once,
and would, perhaps. offer less for the
bonds than they would If the affair were
kept secret. The secrecy was necessary
only because the gold reserve had gone
so low that great sum had to be realiz-
ed on short notice.
AS for the transaction Of 1863, IT must
be remembered that it was in the time
when specie payments were suspended
and there was comparatively small
supply of gold in the country. Ana
further. the Atlantic cable had then been
but short time laid and persons con-
tracing to deliver gold had to depend
very largely upon the supplies OF TINS
country. 1t took then much longer 10
order gold from London and TO get 1t 10
New York. But we have now thoroughly
worked out telegraph communications
with every gold depository In the world
and all the floating gold can be concen-
trated IN two or three weeks al any
point in the world where gold could pos
sibly be needed.
But in the cases that our correspondent
refers to the specific gold is required.
Now, an actual gold dollar is not nccessa-
~ TO the transaction that Mr.. Cochran de-
scribes. A check for dollar would have
done the whole thing just as well as
gold dollar, and that check need not have
been based on gold dollar 1t might
which on the banks books was granted
the drawer of the check because Of
house in Richmond that he owned! All
that was necessary to make check for
dollar do it all was that each person
TO whom the check was offered should
have absolute confidence that he could get
a gold dollar for it if he offered il at the
bank. But IT, while it was going the
rounds, any one had his suspicious arous-
ed that if he presented the check at bank
something would be given him less val
liable than the check, the power OF mat
check to effect further exchanges would
come to an end at that point. There Is
where the free silver mans case breaks
down. His silver dollar is not actually
worth a dollar. and is only kept up TO
the value of dollar by the Government
always receiving it as a dollar in pay
ment of what is due TO 1t. When the
check is going its rounds people are al
ways uneasy lest the Government shall
be unable to keep on receiving these de-
DdScu coins dS NolHo VI iuiI '"iNN' i'N'
become reluctant. therefore, to take
checks. This interferes with confidence.
Credit, which, instead of actual money,
works nirety-fvs transactions out of
every hundred, begins to contract and
the community, thinking that by free
coinage it has enormously increased its
money. finds that it has decreased II
about ninety-fve dollars in every hun
dred.
Confidence. credit, is the agency by
which business carries on its operations,
and not actual money, and when legal
tender dollars are put out on commu-
nifty which are not dollars in fact people
refuse to transact their affairs by the
transfcrencc of credits. because, when
they come to demand a realization OF
the credits, they may be forced to take
dollars which are. in fact, only halt
dollars. Whenever this happens business
has to depend upon actual money for all
its transactions, and that means the utter
destruction of all business. SO that all
the actual money our correspondent could
coin would not be enough for business
if he impair confidence in the slightest
degree. Much less actual money than we
have will more than serve our purpose
if we have universal and complete conil-