The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-26
THE USUAL wAY--sNEERiNG All ihh
ADVERSARY.


,,ublished in Boston, Of which the emil
nent scientist. Professor +. w. IausSis
ia editor. contains an article In us cur
rent number entitled 1.-THE National Bank
ING system" by Charles +. Dunbar Oh
poston. MIR. Dunbar IS enamored with
Tho idea OF banking system emanating
from and controlled by the national Gov
eminent. and his article is nothing Dut
q discussion of amendments which he
,h,,ks should be made 10 that
system. holding tenaciously, how
over 20 the idea that whatever
hsrk currency is issued must be
90 a character that will make every note
circulate at its face value in every part
Of the Union.
Discnssing the question whether notes
nut out by a state bank could be re-
tanned in the state when they were issued
II they were kept always as good there
as specie. he appends TO his text the fol-
lowing foot note:
AT a hearing before the House Com
mittee on Banking and Currency, Decem-
her 49, 1896, Mr. w. l.. Royal, of Rich
mond, Va, presented his views:
Mr.. Royal: 1 say that, II you put out
notes in backwOods community mat are
good at par in New York, those notes VIII
leave the backwoods community and so 10
New York
"Mr. johnson: Must not those notes suf-
fer a discount when the holders OF them
want 10 co outside of their own COM
munity TO make purchases with that
money. in their pockets.
"Mr Royal: No, sir; these notes are
payable in coin on demand. They go TO
the bank and say. Give me gold for these
notes and they get gold
And again fayoring the issue Of notes
by state banks:
'Mr. Royal: If n bank) issues cur
rency at all. It Is for the convenience Of
the people who live around It, Yet, If
country bank issues currency backed by
the Government that currency will leave
II and the people who really need II and
go TO the commercial centres, where there
IS no legitimate need for H."
Mr. Royals cure for the difficulty ap-
peared 20 be an issue of notes, not too
good. but just good enough to be used
at home-a difficult medium to strike"
This IS the customary way of dealing
with the arguments made by the adyo-
Gates OF state banks OF issue. The pas
sages this writer has quoted from Mr.
Royals address have no relation to each
other in the address. and are widely sepa-
rated from each other. The view Of the
case Mr.. Royal was presenting is hardly
suggested even by these quotations, ana
Mr.. Dunbars purpose in making the quo
tatons is 10 sneer at and cast ridcule
upon the argument for the side Of the
case opposed 20 his side. However there
is enough of what is quoted for present
purposes. and we would like 70 ask Mr..
Dunbar what rational objection there can
be 20 bank notes mot too good, but just
good enough to be used at homer"
For twenty-five years before the war,
ylreinia's banks had ont. upon an average,
ten millions of dollars OF notes which
were mot too good. but good enough to
10 used at home" That is, they were
good for the specie that their face called
for, they circulated at the face value in
every part OF Virginia. and they furnish
ed her people an abundance OF as good
currency as any people ever had. They
were not "too good"-that f., they were
no better than the specie they called for,
bu, being just as good as the specie they
called for, they were 'good enough 10
be used at home" The same was the case
In all OF the Atlantic States. though the
new settling West did have wild cat
BANK and notes. II that medium" could
be 90 happily struck. then. why should
Il be a difficult matter 10 strike 1t now,
when wo have no more new communi-
t,es. and when the whole face OF the
country Is now covered over with net
work Of railroads, telegraphs. telephones
and banking connections2
This notion that is so prevalent, that
bank notes ought 20 be good at par all
over the country. Is one OF the strangest
dslusions that ever held possession of the
mindr of masses OF men. Mems checks
ana individual notes are good al par only
between the parties who give and take
than. A bank note, when It's true nature
n considered, Is in no wise different from
che checks and notes that merchants
ufve. It 10 intended TO be used IN that