The times. [volume] (Richmond, Va.) 1890-1903, 1896-12-31

citizens. and II Is. therefore. Socialism
under particular name. and must ieah
ns 10 disarstcr as Socialism must always
do.
But we want TO say this in support OF
Mathew Marshalls idea. unsound as II Is.
There is more reason in it than there ~
in the proposition OF the advocates OF
the national banks that they shall issue
a currency that shall serve the uses OF
all the people OF the United States
wherever the bank may be that actually
issues the notes.
If the notes OF n bank in the noun
tains of Dickinson county. Va, serve the
purpose OF the citizens Of Augusta, Me,
IL is because those notes are issued upon
the credit OF and are guaranteed By the
Government OF the United States, they
are, in effect, the notes OF the Govern
ment of the United States. and II
the Government is TO issue its notes. 1t
seems far more sensible TO us that 1t
should issue them directly than that
II should 20 in the roundabout business Of
having them issued by a bank in the
mountains OF Dickinson county. We
think, therefore. that If this sort Of bust
ness Is TO be done at all that Mathew
Marshall has very much the best Of the
argument.
But the theory of both Mathew Mar
shall and the advocates Of the national
banks is bad Those who would have the
national banks to issue notes to circulate
all over the Union wholly misconceive
the true nature and functions Of bank.
II IS not the function Of bank TO put out
currency for all the people OF a country.
A bank is designed TO be a local institu-
ton provided for the needs OF the people
who dwell around il. If its notes will be
of service to those 1t puts them out. If
they have no need for such notes. the
bank refrains from putting them out. But
its operations, whatever they may be.
either note issuing or discount!ns. are
for the benefit Of the people around II.
IL is absurd to require a bank in the
mountain Businesses Of Dickinson county,
Va. TO put out notes for the uses Of peo-
pie in Onandaga county. n. Y. Let the
people o. Onandaga county make their
own banks put out the notes that they
want. and. If they must have outside
help. let It come to them from their State
or from the whole nation
1t is a total misconception. therefore,
of the nature and function of banks TO
expect them to put out notes for all the
people OF the United States. If that is TO
be done at all. It should be done by the
Government Of the United States. But u
should not be done at all The true idea
OF money is that the standard Of value
issued from the Government mint FUR
nshes the gauge by which the values or
commodities are determined, and bust
ness then consists Of the exchange OF
these commodities by exchanging their
credit values with checks through the
banks. That is about all the use there
is for money. Checks and bills of ex-
change are the national currency. and
bank notes are nothing but useful credit
implements fol- localities that are not
so situated that they can use checks for
their affairs.
Let us return to the boundaries Of the
Constitution, and have our State banks
again to give the country people the cur
rency they need A currency good all
over the Union will not stay with them,
and they are the only parties who really
need paper currency.