The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-21
Financial Suggestion.
Editor of The Times:


session of the ability necessary 10 pene-
trato The scientific panopy with which
the whole subject has been 0bscurod by
seif-constitutod authorities. do not
claim to have anything more than a plain,
common-sensc view OF the matter, which
may be Objectionable 10 learned theorists
on this account.
When 1 mention State banks (so-callod)
pf issue. / am met with the argument
that the American people. having by
usage become accustomed 10 our national
currency, and having tested its readily
current qualities, g The most remote
corners. will not -'--f1 y currency OF
local fame, too pH"s. ; md lOdgment
in the money centres o. our civilization.
When l suggest that our national Gov
eminent should issue directly, without
the intermediate assistance Of private cor
porations. every dollar Of our paper cir
curatlon. / am met with the emphatic de-
claretio that the Government should
20 out OF the banking business And
yet know If the Government were TO 20
out Of the banking business for twenty
four hours. and withdraw It's guarantee
or endorsement Of the now perfectly safe
national currency, IL would be as abso-
lutcly worthless as the fat issues C the
late Confederacy. But the Government
should not usurp me privileges Of the
private citizen. says tho scientist. ~
emitting bills Of credit" unless the Cow
or-imont Is willing 20 pay an annual Ter
centage for doing So But II is the duty
Of tho Government TO guarantee the gem
uineness the yalue--the absolute security
Of "bills OF credit" known as national
bank notos-and maintain them on
parity with gold, for the benefit ana Iro-
lit OF a private corporation. and ray
per contum Of per cent. per annum for
the privilege OF doing So
The Understanding obligation Of the
Government IS issued on the faith ara
credit. as iris guaranteed 10y the ability
Of the Government. 10 levy and collect
the taxes TO meet IT. and is the real cn-
dors ement which makes good CHE best
currency the wOrid ever saw This IN
terest-bearing Obligation is ncn TO gu
intents and purposes fat Issue pure and
simple and whatever is ha SOD upon IRIS
fat issue must be dOubly go 10y al the
rules Of common sense reasoning. Ana
yet the scientists. fluent IL not learned
warn us ominOusly against fiat ISSUES or
so-called money.
The national banling system is hedged
around with an intricate, 81 not boautiul,
circumlOrutiOn which when penetrated.
shows that all the arguments IN its favor
resolve themselves into what logicians
term. redutciO ad absuriam.
The Governments responsibility con-
stitutes the only good that attaches 10
the notes issued by the national banks.
The Government bond, carrying per
cent. interest. and the signatures and
certificates of its sworn officers. render
this so-called national bank note current
Itn frffppgl N4fr
is respected The notes themselves have,
if possible an additional value from the
fact that they are engraved and printed
at the Government shop. ard the quantity
limited 10y the same Government TO the
amount for which security has been fur
nished. And yet the Government should
20 out Of the banking business!
Equal rights TO all and special privi-
leges to none" takes the character Of
pagan priest-craft when common sense
steps I'm TO inquire as TO IT'S real meaning
and the honesty of its enforcement. Tho
hypOcritcal cry against the trusts and
monOpOlics. fosterod under laws enacted
i'm the interest Of other forms Of capital.
which at least promise a much wider
diffusion Of benefits. simply attracts the
attention OF plain. common-sense people
20 the one combine that demands control,
absolutely and completely. Of the entire
circulating medium of seventy millions Of
people
Let MS examine the present unique pro-
cess. which furnishes "the best currency
that the world ever saw"
Mr. A. buys Government bond for
81 O0o bearing interest at the rate Of
per cent. per annum. This bond is imme-
dately licked into the vaults Of the ma
tional Treasury. and nine hundred dollars
OF currency is printed at the Government
Bureau Of Er craving, and delivered 20
Mr.. A.. who merely signs his name. and
has his cashier do likewise and ne has
currency as good as gold the world over.
This bond is security for the good faith
CT Mr.. \. and his associates. for the re-
domption OF the currency IN question. and
the ownership of the bond IS not changed
or I'm any way impaired. Mr.. A. draws
the interest on this bond from funds COLI
lccted 10y the Government for this pur-
pose. Here comes I'm a beautiful view Of
the circumlocution profess, in which Mr..
A. enjoys a special privilege. and has tho
endorsement Of the richest government
in the world. all because he elects 10 80
irto the national banking business.
Tho simple reasoucr who innocently in
quires why Mr. \. did not go into tho
banking business with the money with
which he purchased the bond. and there
by take his chances along with other peo-
pie who are not I'm the enjoyment Of
special privileges is looked upon as an
enemy Of the social order and character
lied as a dangerous quantity in the fnan-
cial world. But, still there must be some
reason for this roundabout way Cf secur-
ing a safe circulating medium for a peo-
pie who are intelligent enough to demand
the very best.
Let as see n there IS not some way
of securing a currency equally as safe.
and at the same time eliminate the cir
cumocution, even If I'm doing this We
tread on the favOrite cOrns Of the gentle |
men enjoying special privileges. Let /
the government print one hundred mill I
lion dollars in bonds OF the denomina- /
ton of S2j EACH or in multiplcs thereof |
Have these bonds regularly signed and /
sealed and bearing interest at Il given I
percentage per annum. Surround these /
bonds with all the sacred paraphernala /
that now belongs TO those now held by /
national banks or notes who seek this I
mode OF investment In order that they /
may escape their just proportion Of State /
and municipal taxation and then lock /
them at once in the vaults Of the nation /
al treasury. The next step would be to /
have the Comptroller Of the Currency is /
sue ninety per cent OF the face value /
OF these bonds in a currency exactly SINH /