The times. [volume] (Richmond, Va.) 1890-1903, 1897-08-19
MIR. BRANcH,s VALUABLE PAPEr

Mr. John p. Branch. read before the
American Bankers Association yester-
day, and which we print in full else
where, is a valuable contribution to the
financial literature Of the day. Mr.. Branch
is a practical banker, having spent his
life in that business, and he has studied
the question OF finance diligently. II ex-
perience and intelligent observation count
for anything his views should command
the thoughtful attention OF the fnanciers
Of this country.
Mr.. Branch is, first of all, for sound
currency. and says that nothing short of
the best will serve the large interest OF
our country.
Its value should be fixed and stable.
1T should be adequate to the needs OF
the country.
1T should expand and contract auto
matically.
1T should be simple and uniform.
1T should be so distributed throughout
our territory that every man entitled TO
credit should be able to obtain its use at
fair rate
The interest OF the people and the bank
ers, says he, are one and nothing truer
was ever said. 1t is the misfortune OF
this country that the people have con-
ceived the idea that a sound, stable cur
rency-the gold standard currency-is pc
mliarly for the interest OF the bankers
and against the interest OF what Mr.. w.
]. Bryan calls the plain people. Never
greater error. or all people, the poor
man is most interested in sound money,
that he may know, when he receives his
wages or the price OF his products, that
he has money as good as the best, which
will not fuctuate in value. but that all
his dollars are up to the standard Of the
world.
But what is the value Of our unit? asks
Mr.. Branch. Is 1t a gold dollar, silver
dollar a treasury note, greenback or
national bank note? Each, he says. has
different intrinsic value, credit alone
keeping them at par.
1.-THE value Of the English sovereign,
the French franc, or the German mark
is fixed. 1t stands for gold, while in
America our standard for the past seve-
raj years has been a matter Of agitation
and doubt. We must define the word
dollar" he continues, land it should
mean, beyond the peradventure Of
doubt, a gold dollar of the present weight
and fineness OF the United States gold
coin. Such a dollar is recognized for its
intrinsic worth the world over"
The advantage OF the foreign system
over ours is forcefully demonstrated by
Mr.. Branch in the following:
The Taper currency Of England, France
and Germany is bank notes, not govern
ment notes. They keep their revenues on
deposit in their great chartered banks.
There is a two-fold advantage in this.
The moi cy Of the people, lying TO the
credit Of tho government I'm bank, is
available for the use Of the people not
idle and unproductive. as in the case OF
this country. where ii lies in government
vaults We borrow largely abroad IL
the government money were available.
we could curtal our foreign loans to that
extent"
There has been much complaint in this
country of the scarcity Of money, and
etttntion has frequently been called to
the fact that we borrow large sums from
England, when our supply should come
from home. The cause Of this complaint
is well outlined in the above paragraph.
He does not stop here, however, but goes
on to show how our supply of currency
may be made equal at all times to the
demands of business. Here Mr.. Branch
reaches the pet theory of The Times and
comes out boldly and clearly for State
banks OF issue. lie thinks that the gov
eminent should FIRST get out OF the bank
ing business by retiring the greenbacks
and treasury noes. declaring that no
other first-class power In the world is
now engaged in banking. The divorce OF
the government ana banking, says he,
should be absolute. our currency should
be based on credit and all government
interference should be Withdrawn.
Mr.. Branch gives utterance 10 a great
Democratic principle when he says that
the function Of government is to govern,
and that the government has no more
right TO interfere in the banking business
than in the milk business. He does not
deny. however, the right Of the govern
ment 70 supervise the currency and see
that IL is good any more than he denies
the right OF a well-ordered municipality
to regulate the milk business and see
that the milk supplied 20 the people is
pure and unauthorized. "Once 1t is un-
derstood by the people" he continues.
that ban: note Is not money, that
bills OF exchange promissory notes.
checks and bank notes are substantially
OF the same nature; when they understand
that the issuing OF notes is not a soyer-
eign act TO be solely reserved 20 govern
ments; when they appreciate that the act
is no more sovereign than the act OF the