The times. [volume] (Richmond, Va.) 1890-1903, 1896-01-04
AZ OBJECT LESSON.


The Louisville Courier Journal says:
Here is an cbjcct-lesson for those
amateur nnanciers whose eternal shihoo-
Ieth Is the currency per capita Dur
ic- last Friday and Saturday there were
sold In Wall street 3..6s,40 shares OF an
aggregate value Of ls6.WO0Jp. Ihese
enormous transactions were ell paid ior
through the stock Exchange Clearing
House Monday 10y 1880 a NJ, yet tLe
actual cash settlements were only >'ol'-
0a The remaining Slsd.l,tOl0 was pulo
In the shaoe OF checks. whose use III
this country Is so much more extern
sjye than anywhere else in the world tAat
by them the per capita OF cash Is eh't-
mously multiplied.
The case might have been very much
stronger than it was. Immense settle
ments many times take place in New
York through the Clearing House and.
instead OF $4,000 changing hands IN
money. less than seven hundred and si@-
ty-onc cents change hands. Never'he-
less. though citing this prcdigious ,act
and seeming to appreciate its Importance
The Courier Journal has not The faintest
conception Of its real import The Cour-
Ter Journal is a. iiipTant as any journal
i'm the land in its discourse about the
national bank system being the best
tho world ever saw. and the immense
blessings the people Of the United states
enjoy in having a paper currency that
win mass in any part Of the United
States.
The important lessen taught by what
the Courier journal has cited is the
feet that business is done by transfer
of credits and not 10y purchases and
sales for money. as so large part OF
the American people enormously suppose.
An order 10 pay one hundred dollars or
a promise to pay one hundred dollars is
lust as effective as a medium for eN-
changing two commodities as the dol
lars themselves. when people have per
feet confidence that the order viii be
cashed or the promise performed, n de-
manded. 1t being far more convenient
10 conduct business by these transfers OF
orders and promises than by transfers
of money I'm bulk. business has adopted
them for It's agencies "a transacting busi-
ness. and no legislation that may be re-
sorted TO can make business refrain from
using these conveniences or make 1t
adopt actual money in their place Con-
venience is the master tn the matter. ana
its DEGREES viii De executed and o0eyed
bv the business world I'm spite of all
human laws.
II. then. business is done by transferring
credits IL Is plain that the thing which
business really needs IS such freedom IN
creating anu assigning credits as VIII
answer an OF its demands Tor credits
In other words It's demands FOR credits
are unlimited. and what q really needs
is absolute freedom In the creation ana
assignment Of credits. The national bank
system secures comparative freedom IN
raising and transferring credits 10 the
pets Of these banks--that Is. 70 those VINO
are known to the managers of the ma
tional banks. or who have couaieIa!s 10
nat up Tor loans. But the national banks
are al tue commercial centres and their
managers do not know the farmers ana
the farmere have no collaterals 20 put UP
for loans. The consequence IS the farm
ers are denied all opportunity 10 raise
the credits they need in their business
and il Is the national bank law which
denies 1t TO them. The part OF That
system. which imposes "A tax Of 10 pr
cent upon the ISSUES Of state banks
makes IL impossible for .hem TO have
these neiehborhood banks whose man
ayers know theme and would grant them
Accommodations. anu they have no hnan-
cial agency. therefore. whore they can
rledce their character and property, and
raise credits 20 assign according TO their
needs. The system. then. secures for the
rich men at The monfy ccnaes all the
accomodat ms they need. but leaves the
great body OF the people living IN tn
country with no facilities for business
az all. The system gives us a note. IT
is true. which win pa,s in every part
OF the Union. when not ore farmer N
one hundred has the slightest use for
such a note. but I Geai,s lin note that
will pass IN his neigatorhooG, which note
will answer all o. iis purposes and IS
ali the circulating medium that he mas
the slightest rse Tor. We yet beauti-
flI shadow and drop tie substance "a
grabbing at H. Hov many Virginia fam
ors have any ccc@so1 10 ME .ayn 'ris
outside OF Virginia All when they ave
occasion to MAKE them. what iG the dini-
Guilty about going to their local banks. II
thAy we're aii3wtl them. ana. fer . tfife.