The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-30

demand Is small and respond but slowly
when demand for money Is pressing.
They prevent the issue ~ bank cur
rency I'm those localities where Il Is most
needed and foster II I'm those regions
where II Is sunerHuo"s
POWER TO TAN
Because. then. they are not based upon
property. but rest only on the govern
ment's power TO tax. because they accus-
tom the people 10 an abnormal use OF
governmental power. and make tho issue
OF currency a political question dependent
wholly upon monetary commercial condi-
tons and thus place our status in the
money markets of the world upon an un-
stable basis both they and the national
bank notes-which partially rest upon
them since they are redeemable In green
backs-must be done away.
The only redeemlng feature Of the pres
ent national banking currency Is that IL
has established the fact that every bank
note must pass current without a thought
of discrimination. But this supreme adj
vantage can be just as certainly and salts.
faciorily attaired by "A spontaneous and
normal system Of currency issue. 1hs
present scheme is unnatural i'm that II IA
not true banking credit currency II is
not based upon commercial assets. but
on a compulsory Investment i'm governx
ment debt. IL is not redeemable I'm actual
dollars. but i'm the promise 20 pay dol
lars, and this latter fact i'm itself has been
one OF the most vicious Influences of the
greenback-the fact that it Is a legal ten
dar.
10 say that n man who has promised q
dollar can rid himself Of that promise By
rendering not the dollar. but another =
promise OF II. imports a standing false
hood into private contracts and DESTROYS
their sanctity and this criticism applies
also indirectly 10 the national banking
currency. IL rests upon debt. But the
whole sentiment Of our people Is toward
debt payment. and we cannot maintain 4
debt. paying interest thereon for the pur-
pose OF basing currency upon IT, This very
operation has prejudiced the people
against the banks. and until the green
back and the government bond bank note
disappear before a currency representing
growing wealth. and not debt our cur
rency and hence our business must re-
main the sport of political parties.
STABILITY OF VALUE
The attainment Of stability OF value In
such a banking currency Is not imposs-
bic. II is the most simple thing In tho
world. To make the promise to pay a dol
lar really worth dollar. il is only ncccs-
sary 10 place sufficient readily convertible
property behind the promise. Because
our largest experience OF a bank currency
OF uniform value was had with one has
ed on government debt. and because the
variable values of bank issues i'm the anti
national bank days were due To uncertain
" concerning the amount OF property
behind the notes. people have supposed
dent to stability Of the value OF currency.
In reality. however. a properly secured
instantly redeenable. elastic and adequate
bank currency can be obtained by fore.
ing all banks Of Issue 10 take national
charters. and prohibiting note issues In
excess Of certain percentage OF capital,
with an absolute first lien upon all the
property Of the bank. making note hold
ers preferred creditors and securing cur.
rent redemption on demand by the banks
themselves, with government guaranty
OF the notes OF failed banks.
These conditions are oxemplined I'm the
successful working Of the Canadian bank.
ing system, which Is completely automatic
in it, wording. responsive TO the needs Of
trade. and furnishes currency the instant
that commerce demands a. redeeming Il
as fast AZ no longer needed
According to the latest returns "a pei
cent or our gold stock * I'm circulation
only SO per cent. Is represented by Ger
tlficates. or our silver dollars only I2i
per cent. are in actual use. while 80 ~,
represented by certificates. II the green
backs be retired the gold held for thc'i
redemption Will be paid out Al the sam,
time gold certificates should be called ia
tho gold held therefor paid out and mas
much as II is no part OF the function o.
government 10 store and care for money
Il should redeem its silver certificates
pay out as much silver coin as can be-
absorbed by commerce. and sell the rest
should there finally prove 10 be an unus
able residue. thus permitting IL 10 becOm'
available 10 commerce through the coli
itself. and through its use a part o.
the assets OF the banks. only By these
means can commercial and MONETARY
questions be removed from political In.
fiuence. and the government be freed
from danger arising from commercial ex
igensieS