The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-14

business man to issue his own notes for
goods purchased and that Of perm hitting
bank TO issue paper sutsh uies Ior
money for ito own accommodation. The
one IS legitimate use OF credit, anu
has behind IN bona fde value received
The other is merely the use OF cfeult
without value received behind II. Inc
one form OF note rarely goes beyond the
maker, and his banker, viii st the other
Is intended to circulate over large
area and through many hanhS, NOT ohs
of whom very often knows anything OF
the standing or responsibility OK ths
maker of the note or mas any means "
asc"rtaining this.
Money. or its substitute, should be CT
equal value everywhere within the couh-
try of its issue, and, as Tar as possi"tD'
outside this limit to properly anu lu'iy
fulfill its mission. You say tnat snch d
system as / advocate must ne cesar =.
lead to the difficulties WHICH nave az
times Of panic followed In bhsIaho' anu
which can only be overcofn oy the eat
else Of power which Is amen 10 tHe
Institutions Of this country. ! fan TO see
this. You. think. misapprehend wnat
Is the power which Is exercised IN Eng
land 10 prevent disaster al such tunes
OF panic. Ii Is not despotc power
which is exercised, but one Whlch could
BE- quite as properly exercised mere as
there. What happens Is THIS; Nheh
run Is being made on the tanks IN Eng
land, which largely keep Their reserves
with the Bank OF England. ana Inc power
Of the Bank OF England to meet these
demands is being tested. IL the Bank OF
England fears its ability TO Withstand
The drain, II applies to the Ministry in
power for an assurance that If necessary
for the salvation of the crccit Of the
bank IL shall he requisite 10 go beyond
the terms OF It's charter in the issue OF
notes, that the Ministry VIII ask Parlia-
ment to indemnify IT from the conse-
oucnces Of so doing. No power but the
Parliament elected by the people. can
give this indemnity. The suspension oil
the bank act simply means that the
Ministry pledges itself 10 ask for this
indemnity The assurance conveyed TO
the bank and the public that this course
will be taken has always hitherto been
sufficient TO quell the danger even without
the necessity Tor the bank going beyond
its chartered power Of issue. This as
surancc has had practically the same et .
feet that the action Of the Dank ltse-I
had I'm the Barring crisis Then the bank
borrowed gold from the Bank OF France
and announced the fact Of the receipt OF
the gold This knowledge stopped the
panic and the Bank of Frances god was
never opened out Of its packages. but re-
turned 20 France as &c came
What reason is there why ConGre So
representing the people Of this country
should not exercise the same power as the
Parliament Of England. It's doing so
would operate here 70 prevent pan
becoming disastrous as * does in Eng
land.
II YOU will give me space 7 may IN
future letter offer some remarks on your
editorial as 10 the Lessons Of Englands
Trade" | do not think YOU CORE thy APP
preciatc the position or its resulting con-
sequences. To my mind the import and
export tables quoted convey a m1rve lons
illustration Of the way in which ELS and
grows richer every day.
j. T. JACKSON.