The times. [volume] (Richmond, Va.) 1890-1903, 1896-01-28

! occupy his time with, but he made a
/ speech Jon the Senate last week. which
ho closed with "a paragraph that contains
1 so much OF tho too-common financial
error OF the day that we shall devote a
( few remarks TO it lie said:
4 entered upon the discussion OF this
| subject. 1 will say 10 The Senator from
New Hampshire, with the proposition tnot
there was not gold and silver enough
ia the country TO perform the monetary
functions required by the people. and
That. therefore. ] favored The coinage of
all the silver we could get at our mints
in addition 10 an the gold that is brought
there. so as 90 procure coin enough with
which To- pay our coin debts Aftcr hay-
ing discussed that phase Of th, subject.
/ stated distinctly that after We had pro-
cured coin enough Tor these purposes /
thought Congress ought 20 devise some
better monetary system. and also stated
what Kind of system / proposed, per-
mauont yaper-mOncy system. "a system
based on the values OF on the property
Of the peOpie-a coinage. II you please,
o. their lands. their houses. and all their
lawful possessions. ana this system TO
take the place OF an metallic money eX-
cept only for small business transactions.
NOW. about all the errors of the DAY are
comprchended in this.
PETER is incorrIeible and # is not for
his benefit. therefore but for the benefit
of people who want TO learn. that we
say that you cannot satisfy "a promise
to pay dollars with lands or houses. The
specific dollars must Doc forthcoming TO
satisfy a promise to pay dollars. ard the
number of promises 10 pay dollars that
are put out must bear some relation 10
the actual dollars that are available 10
satisfy the promises that viii give the
people who handle them confidence that
the actual dollars can Zoe had if an occa-
sion TO demand them arises. A financial
system must start, therefore, with actual
dollars, which are Of fixed and unyary-
ing value. Having that always under
stood. individuals may put out just as
many of them as they please, provided,
always, ID De further understood that the
holder of the promises always has the
right 10 call for the actual dollars when
he wishes them. and that the man or
men who put them ont must put up the
actual dollars when they are called for.
But 10 Will never DO 10 lct The man who
put ont the promise TO pay dollars on
demand put up house or O. lot when
De called upon 20 perform his promise
al ii valuation i'm dollars that the holder
OF the promise has not agreed 10. Your
paper promises are discredited the mo-
ment you put them out if that is under
stood TO be one OF their characteristics
The people that PETER has spoken for
In what we have quoted cling TO the idea
that great quantities of legal-tendcr !
money are necessary for the affairs of |
the world. But this is a capital error |
which leads them into an Of their vaga- |
ries. There need be very little legal |
tender money If only that money is kept |
az fixed and unvarying standard. When |
that is the case business transacts itself |
by transferring credits. the philosophy Of |
which is this:
one communicative represented by |
Richmond, for instance-has produced a
surplus of tobacco; but it needs cloth, and
another communicative York, for in
itance-has produced a surplus of cloth,
out it needs tobacco. Miller. Nellisan &
Co.. Of Richmond, sell a lot Of tobacco
% a New York merchant, which is deem
d by the two TO be of the same value as
me thousand gold dollars and thereupon
he New York man. who has got a credit
II his New York bank for one thousand |
dollars, sends Miller, Nelligan q co. a
heck on IL for one thousand dollars
which they put into their Richmond bank
or collection. and 1T thoreupon has New
FORK exchange for sale Monat. Black
tone d Co., dry goods merchants in
richmond, buy one thousand dollars
worth of cloth from q New York mer-
hant, and they so 20 the Richmond
ank for New York exchange 10 pay with.
hey are sold The tobacco draft. which
hey send 10 the New York cloth mer-
liant, and the credit there that the
obacco man has had is changed to The
10th man. and the transaction is COM
leted and AN that has been done is TO
wap some cloth for some tobacco through
process Of exchanging credits at a
ank the transaction having charged the
arties for the froights each way. the
of the persons engaged in
bee transaction. and q small profit to
ne bank. Now. this is. I'm miniature, all
re business OF the civilized world All
10 is ct bottom exchanges of commOdi-
as effected By exchanges of credits.
But dun as PETER is. has he not s.lso
lough to see that none of this business
,n DE done unless an the world knows
nat The word dollar means the same
ling everywhere and an the time. and
at a promise to pay dollars must at
'ery moment Doe susceptible of being con-
rtod into actual dollars If the man
,lding il so desires? IT there is que--
ln about the meaning of the word doll
r. as. for instance. whether the paper
omise viii be redeemed In a sold dollar
orth one thing I'm popular appreciation,
iu "a silver dollar. worth only half that
popular appreciation. or whether IL is
Doe redeemed on demand in houses that
e holder Of the promise has no voice
vaIuins. cannot PETER see that the
lriies To- the negotiation described viii
lt make that negotiation through that
occss? II PETER introduces any element
uncertainty as To the meaning OF The
ord dollar. or allows the Dromissor 10 D
ry his promise i'm the slightest degree.
Kills all the present methods of doing 6
siness. lie might build Up new meth .
though We do not believe il possible. s
Il ho would have first % wine out our :
escnt civilization and an the founda- @
ns upon which 1T rests and build up q
new one that was prepared for his new i
thods ,