The times. [volume] (Richmond, Va.) 1890-1903, 1896-12-22

that Interstate notes were indispensable
TO interstate commerce. aud that com
nodities could not be paid for between
States without such currency. But inter-
state commerce Is not transacted with
either coin or currency notes, IL i con-
Quoted through exchange. Separated To-
calities do not buy from each other with
coin or currency. They exchange com
moditios. the transactions being operated
and arranged by the exchange Of their
credit values through the banks. This
exchange viii always he payable In coin.
II debtor locality has no exchange
against it's creditor locality. the individual
in tho debtor locality takes the notes Of
the bank 10 IL. and demands gold for
them. and ne ships that. Baltimore would
never allow Richmond 10 send her Viz
ginia bank-notes. She would require
Maryland notes or coin
This great fact Of balances being set
tied by exchange IS the important one
that has been overlooked in an the finan-
cial discussions We have had Yet it IS
the key 10 the case. All interstate com
mcnce is thus conducted. and all inter
state commerce. in the cities IL is only
the country people who need coin or notes.
but they need them imperauyeiy and
must have them.
As II stands at present the national
bank act is so entirely unsuitod 20 the
people who live in sparsoly settled conn
Try districts. that they know absolutely
nothing about il. The requirement OF
government bonds. the limit OF sJ0o1 10
start with and the tax on the circulation.
remove 10 from the consideration Of the
country people. But II il were made far
more liberal in these respects II would
still utterly fail to meet the needs Of
q H.
to issue more than their capital in notes
10 make banking in the country profit
able. And our experience before the wax
proves that thI can Doe done with safety.
The notes get out amongst the country
people. and while the credit Of the bank
remains good. these never present them
Tor payment in coin. They are at dis
count away from their place OF issue. but
this D. ala the better as II sends them
back a. once for the use Of the people
they were intended FOR Just as happens
with the notes OF the English country
banks. or with Mr.. Sanchez coinage.
Again. notes secured by government
credit will never DO for the country peo-
pie however many of them even their
own banks may issue. These. though IS
sued in a back woods mountain district.
arc ass good IN New York or Chicago as
any others. and while this Is 50 all OF
them will certainly go there. The banks
are on one side Of the street the cX-
changes Upon the other. Tho banks bid
for ali tire currency that IS good an over
the Union. and the spectators borrow
10 from them 10 speculate with in the eX-
changes Tho thing Is automatic. As
the banks get money. the spectators in
crease. and as the spectators Increase,
the banks bid Tor more money for them.
They will draw from the country districts
an the currency their banks may issue
that IS secured by the governments cred
il. This is the crucial point our cur
rcncv must be one that IS local ana not
good an over the Union.
know the point Is made against this
areumcnt that contracts 'of this sort
are not operated through coin or cur
reucv notes. but by granting credits ~
tho banks with the stun dealt In as coll
lateral But whenever a credit Is grant
cd there must Dee a reserve OF redemption
money. These speculative credits swell
out 90 any amount whatever ana they
will call for all the money and currency
GOOD an over the Union. that may be Is
sued TO stand as the reserve redemption
money required.
CAUSE OF THE UPHEAVAL.
What the people need. and what they
have a natural and constitutional right
TO- is perfect liberty 10 make such con-
tracts as they please without interior
cnce by the government as Herbert
sponcor so snlcndidly argues for on his
essay alreadv referred TO They have a
right 70 demand that the government
shall repeal all laws that abridge their
natural rights i'm the matter OF banking.
Then. with tho notes of their local banks
always payable on demand in CON- all
the people would have all the currency
content would come 70 an cnd.
4 local bank would grow mp naturally
and bv the evolution principle wherever
there was business enough 10 sustain IT,
aud the surrounding country would IN
crease i'm fertility and productlVeness as
the hank prospered. and the bank would
urosper as the country around u pros
rorad II would be like a spring IN
desert. Everything around II would DE
green. and where its waters ceased 10
percolate the face Of the desert woulo
apuelr. What Is wanted IS that an
.rts Of Congress interfering In any way
with perfectly free banking. shall be re-
realed and that the subject shall be re
located TO the states FOR such legislation
rs they may think proper. This is inc
idea Of the Constitution.
The case comes down. then 20 TINS.
In every great part of the country the
,aonie are without any media of exchange
and that fact was ar the bottom OF tho
prosirious unheaval we have just seen.
crn sneak with confidence of virginia.
and II was certainly so there. The coun-
tr,.'s trouble is not ended. no impress
sion has been made upon n. Al least
this is certainly $50 I'm my state IL VIII
never be ended until the country people
are treated with fairness and Justice. and
relieved from the discrimination now
orerating against them. The inconve-
rience which the people Of the East ana
middle West fear from notes II dis
count. would really be very tr.iling for
I'm this day Of electricity and steam a
note that was ~ "A discount would be i'm
efant7v sent scurrvins 20 tho state OF its
home Tho question then which that
mart NJ tho country that is satisfied VII.
tho national bank system has before u.
Is this. Wit r submit 10 the slight iucon-
vouience Of notes ~ n discount and re-
store peace and quiet 10 the whole coun-
try or will 70 stand ont against any
amendment and any relief 20 the great
body ~ the country people and run the
risk. four wears from now. Of riot revou-
ton and possibly blo0dshed. The ques-
ilon Is most momentOus one and u be-
comes YOU. gentlemen. to give il the
gravosf consideration.
7 thank you for the attention you have
given me.