The times. [volume] (Richmond, Va.) 1890-1903, 1896-12-27

| last twenty years the representatives OF
these nationally Improbable industries
| have been depraying the politics and the
| social order OF the nation. carefully
| spreading the virus OF false economy and
| leading masses Of right-minded but liz
| Informed men To support their selfish
But even with all the ability which the
attorneys OF the silver miners have eN-
hibited they could have had but little in
| nueuce upon the community nau tnrre
| not been other and to some extent right
| ful causes of discomfort in respect 10 our
financial system of which they have taken
advantage. II Is probable that the silver
| party as a party has ceased TO exist. In
| other words. IL has been found out so
| that IL cannot impose upon the communl-
| ~ any longer. There VIII be Tor time a
more or less academic discussion OF In
ternatiOnal bmetallism. sO-called, but
that is a relatively unimportant matter.
working no harm TO the community ana
giving mental satisfaction to its few but
strenuous advocates. The community as
a whole has not even yet attained any
clear comprehension Of what the purposes
and methods of the advocates OF interna-
tiOnal bimctallism really are, or how they
expect to secure their object. nor is Il
probable that their recently defeated can
didate for the presidency could enlighten
them II he tried.
TO tha great mass Of the community,
international bimetallism Is a sonorous
phrase. which most people think may
mean something. and great many men
would say II asked. OF course We are
for international bime tHlism.' lest they
should be convicted Of ignorance on the
subject.
Passing by that interesting but ineffect-
ual topic we may now search Tor the rea-
sons which have led so many right-mind-
ed but wrong headed people 10 promote
the purposes OF the rule and ruin party,
lately defeated.
have given the advocates OF the silver
miners their opportunity, two are con-
spicuous:
list An apparent. II not a real. grant OF
special banking privileges under such re-
strlctions as 10 create sectional prejudice
agairst banks and bankers alike.
I'd. An apparent. and 20 some extent
real perversfon of tine power of public
law to tho maintenance OF trusts or COM
bnatiOns through which rightful cOmpeu-
ton is avoided by men who even II they
reduce the price OF the products IN when
they deal, yet make great fortunes bN
methods which may become danger 10
the community.
There has probably been no influence
50 potent in promoting the agitation Tor
the free coinage of silver dollars az 10 10
Of fun legal tender. as the neglect Of both
political parties 10 adjust the banking sys-
tenn Of the country to the present condi-
lions Of peaceful commerce.
Before the Civil War, the banking sys-
tenn Of New England had become very
safe and effective by the adoption or what
was known as the Suffolk Bank system
IV which the prompt btildIN l'l Nl' i'
dcmptiOn I'm coin of notes Issued on the
security OF the general assets or all New
England banks was absolutely assured
In New York the sO-called SAFETY Fund
system prevailed. the bank notes being
secured bv the deposit of bonds. In sew
eral other States q sound and safe bank
ing system existed. while IN others such
had been the wrongs from which people
had suffered from "wild-cat' banks IN a
previous generation that even the ostaD-
iishment of any kind of bank 0f issue had
been forbidden by law. Hence there was
no sound or safe national CIRCULATION OK
bank notes. while the use OF gold for cir
culatfOn was almost unknown and the use
OF silver was limited TO the minor coins
These conditions were NOT suitable OF coh-
ducive to the general welfare. and were
leading TO q full consideration or the ques-
ton.
Then came the financial measures OF
the war. the issues OF the legal tender
notes Of the government and the national
bank act-bOth war measures ana both
intended for the collection Of forced loans
The legal tender notes Of the govern
ment worked by direct action upon the
people by which their previous note cir
culation had been sustained Under these
nets for the first time I'm the ,history or
this country n paper currency was ere
afed which circulated on equal terms etcn
with the other throughout the Union. But
the conditions were more injurious than
beneficial The legal tender nOtFs and
tho bank notes alike deprecated IN their
ratio 20 specie: but that depreciation was
concealed. while the benefit Of q note cir
culation Of universal acceptance became
very apparent
II the necessity OF n forced loan be ad-
mittcd. both acts were well framed TOT
the successful working Of that method or
finance. II has taken nearly generation
to bring the evils OF the forced circulation
of legal tender paper money into conspic-
nous notice and to bring such public at
tention TO bear upon these evils as may
assure the remedy.
1t is true that the national bank notes
are not direct and positive legal tender,
but they are 50 bound up IN the general
system of finance as TO work substantial
~ the same effect. They are not sent
home TO the issuing bank Tor redemption,
hence no adjustment to the varying de-
mands of business. They are 10 all IN
tents and purposes promises or the gov
eminent. Whenever d bank chooses 10
sell the bonds 10y which these notes arr
secured. the sale is made, tho proceeds
being paid into the Treasury OF tho Unit
ed States In sufficient measures TO cover
outstanding notes. After that deposit OF
the proceeds OF the bonds has been made,
the bank which issued the notes pays no
further attention TO them. Ihey nave
become government paper without resort
TO the bank of issue except IN the event
OF the government repudiaung the debt.
Thus we have three kinds Of govern
ment paper of direct promise. another
kind of bank note paper assumed by tho
money, national bank notes, which can
be slowly and painfully expanded on low
priced bonds, but which will certainly be
very much contracted as soon as our
bonds reach the price 10 which our credit
will entitle us on a two and quarters
to per cent basis. There Is very little
profit on bank note circulation az the
present time, and when United States
bonds attain their rightful position a
large part OF the bank note circulation
will be given up by the banks by a sale
Of their bonds and they viii thus be-
come a mere government promise.
II Is wholly out Of the power OF the gov
.ment 10 adjust this circulation 10 the
conditions Of business and il is wholly
out of the power Of the business commun-
ity to adjust business to the fluctuations
I'm the volume OF note circulation which
Is I'm existence. Either we must blunder
on. exposed 10 more ana more frequent
disturbances with occasional financial
crisis, or we must adjust our banking
system to existing conditions.
What then stands I'm the Wav2 Is II not
the prOhibitOry tax Of 10 per cent. on any
other note circulation issued by banks
than tho national bank notes2 The true
purpose OF taxation IL 70 gain revenue.
The circulation of national bank notes is
subject 10 a tax from which no revenue
IS derived. IL was intended 10 be prohibit
tory.
Is there any other true course 10 be TAX
en- in the first instance than TO repeal this |
tax Why should there he any delay or
hesitation The answer n. the fear that |
In some States banks of issue viii be
started, uttering notes which may not be
safe and hy the circulation Of which peO-
-. i.