The times. [volume] (Richmond, Va.) 1890-1903, 1897-04-15

tant as effecting the argument Dut II -
very important as showing that Mathew
Marshall has not given such study to MI
Royals paper as enables him TO com
ment upon it with accuracy
Now Montgomery county is by no
means destitute region" nor is Taze-
well county a destitute region though,
under a currency system that makes
every dollar good at par in the CONNER
cial centres they take from both counties
its national currency and both are at all
| times destitute" of any circulating me-
dum. But they have a great deal OF
very valuable property all the same. Both
counties are blue grass. grazing coun-
ties. Of as great fertility as any in the
world. and the farmers raise and Craze
great quantities OF splendid cattle and
other animals. Some OF the very finest
beef that Mathew Marshall ever sees in
! New York city goes there from these
two counties,
Mathew Marshall imagines land his
whole wall street contingent does the
same) that because a region may not
have property convertible in a moment
into transferable capital. that they are
therefore destitute OF capital. All prop
eriy made valuable by the gifts OF nature
or by the labor of man is capable OF be-
ing converted into transferable or bank
ing capital. Some may be surrounded
by such conditions that it is not imme-
diately convertible. but II conditions-were
favorable. or II time IS given. 1t can all
be converted into such capital.
1hese Montgomery and Tazeewll county
people have very valuable property. and If
cur currency laws were all repealed, so
| that they might MAKE the best use or
their property possible they would find
means of converting into available capital
as much Of it as was necessary for their
purposes.
We will illustrate this. II Matthew
Marshall will turn TO page PIG Of the
same volume in which he read Mr.. Roy
alrs statement he will find Mr.. r.. a. Lam
caster when pointing out TO the Banking
| Committee that the provision Of the Ma
tional Bank act requiring stockholders 10
/ be liable for as much more as the face
of his stock, making the following state
ment:
There are but few rich men in the
| South. We have one in Richmond whose
income would enable him to organize
| several national banks each year, and yet.
faNnr Ia
never invested dollar in a national bank
because of the double risk.
Now, if banking were free, this Rich
mond capitalist. who has q great deal or
cash capital. would probably invest a good
deal Of it in banking. lie would thus say
to The Montgomery people: raise 5000
amongst yourselves, and / will aid you IN
doing it upon the security of your splen-
did blue grass lands. and l will add $4,000
and with this 100000 we Will start bank
in Montgomery which will issue cur
rency notes enough 10 give all the people
Of that region sufficient supply Of media
of exchange" There is one way in which
| that region might get a bank. But rhe
methods are infinite IL only the laws
were so framed (or if the present laws
were repealed) that the people could make
use Of their own resources.
Matthew Marshall says Mr.. Royal did
not explain how such a bank, with It's
resources mostly locked up in loans to
farmers could redeem its circulation when
at discount. This is another illustra-
| L..
Mr. Royals paper for he did explain that
very thing.
The notes would not be at q discount
in Virginia. All of our banks would know
the character of all Of them. so that no
notes of an irresponsible bank could ever
get into circulation.
Aided by steam and electricity Virginia
would have what would be practically a
clearing house for the whole Stale. and
no bank Of issue could survive that was
without a standing in that clearing house.
| All Virginia bank notes would. therefore
be good at par all over Virginia. and. as
soon as the system got well at work. when
| would, OF course take little time, there
| would be very few calls for redemption OF
notes by Virginians. Some OF their notes
| would undoubtedly stray at times into
other States. and there. being at dis.
count in these other States because the
people and the banks there knew nothing
Of the solvency Of our banks would come
back here at once for redemption. The
banks would. Of course. have to keep
themselves provided with a gold fund 70
meet these and such home demands as
are made upon them. But this thing
would soon regulate itself. The banh
would soon find out how much gold II
had 10 Keep on hand 10 meet these d.
mands and they would all be anet
All that is necessary is for the legislator
to keep his hands off and the business
people Of Virginia will find out the best
way to conduct their own business so as
to produce the best results.
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| WHY unuSES ABE fxrnx,.