The times. [volume] (Richmond, Va.) 1890-1903, 1897-10-12

Iolai.......... ,.......... ..,.....;1l4 ai,,,l
Liabilities 90 the government. 1ls 2'i.2l3
Liabilities 10 individuals. Si5l .os2 i2s
- not dollar OF this E-10oC0 has
Tho slightest preference over any other
dollar from tho Bank Of England notes
20 dep site Of individuals, in being p7y-
able On gold or having tho rieht to doc
meand gold how can any one conceive
that o risfd bank regulation. or iueXOra-
be statute Jaw I'm restriction OF the free
dom of tho bank-as 70 the me"nan'sm of
kaeplnc ifs sold or Issuing IT'S currency
or paying out rs currency MS unforeseen
cmegcn. ies arise can Doe any other than
a promoter and intensiier of panics.
rather than n source n stability and con-
hdence in the ever expanding and con-
tractine demands for currency. and tne
complex and ever-varying and unknoW
able banking gold conditions;
shan THIS country ADOPT the curr nc"
system Of the Bank Of England. as some
are urging. when as / have said IT has
received the most severe and unanimous
condemnation I'm the practice OF all other
banks for the whole hfty-three years M
its exisfence2 The greatest. IN fact. the
only. competent or tangible evidence OF
approval ~ any financial device is he
adoption by those who approve II. Every
bank in every country has In practice com
demnod the Bank - England machinery
for keeping and paying out Us gold ana
issuing lis currency. 5y refusing % adopt
rs system. Furthermore. the whole body
of the worlds practical hnanciers. with
few exceptions. condemn e in words. 'a
they IN DO in practice. tt IS nor a.ih-
doned bv the Bank Of England from me
fact that the warp and woor. inc
NJ modern banking Is based on 'conu-
dence." and when confidence exists reht-
w or wrongly. bankers are not warranted
I'm disturbing the public mind by n change
however desirable I'm itself the change
NAV be- could nm thirty-twO pages oI
the Sunday Herald with adverse cfllci M
~ ,bo Bank OF England system from tAe
leading financial writers OF the Woild' n"t
as 7 ann appealing 10 the great jury mat
must finally decide this question. VIZ" the
nlain peopie. shall use my limited space
II, quoting the final verdict o. those most
competent 70 form right opinions. from
authorities the people can consult VINO"
are crystanzed I'm encyclopedias. $3.50
Mr. Walker then goes az laIse mo
a discussion OF the methods or pusi
adonted by the Bank Of England. win a
view 10 showing that they are condemn. u
ana he concludes his letter thus:
Aeain normally low rates OF interest
cannot nrevau where the true bank move
currency Is not issued. This country mas
no, seen n normally issued bank nole
e,,ca tho state bank notes were taNel
ont n, existence. II can De proven mat
~ purchasing value Of the wages or
income az every man IN this country Is
reduced bv nearly one per ccntum I','
annum by our faulty banking currency
and treasury system.
will quote only ono more opinion on
the issue OF currency system or the BANK
OF England. but 1t is The final Iuash. nc
OF one OF the most careful ana exp Il-
enced Investigators and financial experts
and writer's in Europe. lie expresses
practically their unanimous OH ioH.
Pierre des Essarts. CHIEF OF the bureau
~ economies and statistics OF the Bank
o. France. author OF the History OK
Banking in All the Leading Nations
etc. etc. in an article published m me
Journal OF Commerce and Commerclal
Bulletin, OF New York. March l4 lsJ'
(which no ono can AFFORD not % read
says:
The true bank note IS unknown in the
United States. The bank note should be
simply means Of Transforming n dett
into cash. As between individual the
note is cash: but as between the issuing
bank and the holder II IS n credit instrr-
ment. because the note holde. has loaned
~ the bank the coin he has right 20
demand. When q bank OF issue
Is properly managed the circulation takes
care OF itself - sThese notes are sufi-
GENTLY guaranteed II the property and
securities against which they 7re issued
(the assets OF the bank) are valid and Of
sufficient value England has
adopted an automatic device for issuing
currency notes which works well en- ord.-
nary times but the insuhciency OF which
has often been demonstrated in critical
times. We may note IN addition that the
banks regulations for issuing currency
notes. which are practically useless In
normal situations. become futile or even
dangerous when the bank IS called upon
for unusual cxertions.
am more content with being charged
with belns foolish" Ignorant" ''vul-
gar.i etc. etc. hy the New York Even-
ing Post FOR holding and expressing opin-
ions common 20 the great body OK the
practical financiers OF the world.
No man can suggest any substantial
advantage IN the division % the ISSUE
department from the discount depart
ment OF the Bank OF England
over and above the law and