Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-07-21

fortb Tho most enormous yield OF pl"
ducts. Railroads began 10 be pIVJ.t 80.
from one end Of the country 10 tne o.'i. ',
The mass Of the people were s''4.-,.t
at the boundless prospect OIL -.
which opened out before them w ~
toned state banking. the pest III
world was not swift enough lot '".1"'
and they iuaugrated the era oil -
banking. with comparatively no resi-
lions whatever. Any man WHO cHo'
started q bank on his own account ~
Issued his notes. which We're recelNeu %
"A circulating medium. The country
flooded with what was known as S"'
plasters. Sngularly as II may @pPe'
the States had comparatively no iiilPat,.
ton laws. indeed. they were so iOo'
drawn where they existed that they az
forded no protection to the deposltor anu
fho uotcholder During the seven yeal9
have mentioned untold millions OF Hic-
doemablc money were dumped upon our
people. almost as fast as the notes Cou-'
bo printed. 1t was one long TeFei o. .
Gation. and could have but one emu, a.
that was the inevitable bursting OF ,''-
bubble. The old-fashioned state JAIN.
with careful charters, Ike the al ~.
Rank and the Bank OF virginia ~,
the storm successfully, as did di'Ho9.
hanks az Ike character IN Massachust'.9'
other States Both their notehoideI5 anu
dcpositors were carefully guaIueu'
was the independent banks and the PIT
waite banks that went down. Ana lh 'hla
connection IL IS appropriate TOT NE ~
state that the report Of the SecrelaIE'' ~
the Treasury for 1895 cOnclusNely pi"NN-
that the old-fashioncd state banks VIZ
the safest and best that ever eNisted III
tbfs country. The Comptroller. MI
sion. and the student who READS MS Ic
MORT mist discard an of his personal re-
eectious. and he can gather the I"cl'
only from isolated and disJoinled s'h,1
r..ut~. but these statements are Il ln'
report The Comptroller IN MS "'""~
tions. IS entirely untrustworthy' Dut ~
was compelled 10 give some IdctS VIM"
absolutely refute his theories. NOle nv
history Of state banks from l's- IN Ne"
York Massachusetts. COnnecucHI WI
rfnia. South Carolina. and LOUISIANA, NJ
collect that l am alludlng not 40 '""r
pendeur banks but TO state banks. III
yin show that State banking is FAR SAFER
tban the national banks. This proves inc
conclusion reached by Mr.. Frederick X.
scott i'm am able article on the suDJeC'
some wears since I'm the Richmond llmes.
Having now given a brief description
If the panic of 1891 and the cause Which
led 10 il, / will state the remedy which
completely cured it. 1t was an act OF
Congress passed March, 1873. making
foreign silver and gold coin lesa ten
der m payment of debts at the recognized
legal relation. BY this act British goid
coins were made legal-tender, also trehcn
cold coins. also the silver dollars or
Mexico, Peru. and Bolivia, and the French
silver 5-franc piece was made a legal
no m
dollar had always remained a legai-tender
dollar. The act specifies other foreign
coin. which / have not mentioned. At
the date of that act we had about S8,Olo-
coo of American silver. and all the MeXi-
can silver dollars, all the Peruvian silver
dollars. all the Bolivian silver dollars.
all the silver French 5-franc pieces ana
all the American fractional silver coin.
and every particle of this different Kind
Of money was legal tender. In 1872, when
the act was first offered, IL met with
great opposition, but the people took
hand. and at the second session of Con-
crcss II was passed by a large majority.
It's effect was magical Ii caused no dis
turbances. Prices slowly but surely
rose. and this country for fourteen years
from the date Of that act to its repeal
I'm 1857. enjoyed the most unparalleled
prosperity in its entire history and the
very year il was repealed another panic
uS0 of very considerable dimensions
ensued.
Il is singular that this remarkable act
of Congress has received such little at
tcntion. 1t is a nut-cracker for the
GOLD monomctaLists How much silver
was i'm circulation between 1913 and 1851?
No man can tell. 1t must have been
enormous; far more, indeed, than has
ever been before or since. And there
was no undue imitation. on the contra
~. the country nourished like a green bay
tree as il would now DO if silver was
remonetized. The reason for its repeal
was the Unprecedented and enormou:
discovery Of gold in California. Even
with that great influx Of gold its repeal
brought about another panic, and did
great harm.
IL was the intention OF the trainers OF
the Federal Constitution that the people
Of this country should have the right
to use foreign gold and silver. II Is to-
dav their constitutional right. and eXe-
cradle legislation on this particular sub
ject viii perhaps be the subject Of another
paper. Bad legislation-th1t is, the want
Of proper inspection laws-caused the
panic of 1857: the Infamous demonetiZa-
ton of silver caused the panic Of 1873;
the repeal OF the Sherman bill caused the
present panic, which. since 1893, has
lowered like q pail OvcLthis fair land.
The intelligent student Of finance can
come TO but one conclusion, and that is
that legislation caused the downfall in
prices. and legislation alone can restore
the former prices. Money is the creature
of Jaw.
Nov. e this is true then it becomes the
duty Of every citizen % use his utmost
exertion 10 bring about that legislation
which will give us higher prices for our
products. The farmers the mechanics.
she laborers. the tenants OF land. the pro-
fessi0nal men all are alike interested.
We must asitate the question. IL is our
only hope II must De borne i'm mind that
this is representative government,
and the people have right 20
bee heard. II IS Il great subject
I'm which every man is vitality Interested.
II rises high above all partisan conside-
rations. Experience and observation are
the greatest of all teachers. Jhey nave
been at work with an intelligent men for
the four past drcary years. From small
beginning we got 6.5WOJ votes IN the
recent presidential canvass. II was
mighty achievement Since that time we
have swept Chicago and Cincinnati ana
other places like a whirlwnd, and day by
dav we are growing stronger. Can IL bee
true that a benign Providence has so
timed 10 that we shall burst our letters
Just prior to the dawn of the twentieth
century? Can it be that when we write
the figures 1900 the pale white metal VIII
Dee restored 10 its rights? II ii is true, no
tongue can tell; no pen can describe the
glorious. the stupenIous results that VIII
follow. The Imagination Of man IN IT'S
!oftiest flight cannot depict ii.
The fight for bimetallism is a noble
cause. and well worthy OF the sacrifices
which are being made 10 obtain IT, All
han 10 our eallant chiefiaIn. William