The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-11
OBSERVATION-DISCLOSURES SHOULD s'''
TO FINANCE.

To the Editor OF lHc Ai' ,o,.or
SRI will add, however as l hoNo'
fail TO do, that our state DalNS :.
nlan of our Constitution. ana tndi Plan , - =,
-, -. defiance when we are denied theh'
The above is the concluding seh'enoo
~ Mr.. RovalTs reply TO my letter " Ano
Times published February 2 80"
know nothing Of any plan cohttih-
Mated by the trainers of the Cohsli'uuoN'
other than such as is clearly eXpresse1 ia
that instrument and beg TO assure NJ,
Rovall again that ! dccnne 70 $3.50 T,,i,,
conclusive testimony that state bdilh99
,,,oro ar re the plan because they are not
specifically prohibited by It. 40 nov uo
So in any spirit OF factlous laul' ,ro
! l 40 ca because doubt N banks ol IH95se'
which came into existence "i.'i
% Tho demand Of expanding and eniars-
| ing trade and because there WIS "o ~
s.itntiona1 inhibition against them were
| dreamed of then 70 furnish a circulailhs
Substitute for the money Of the Consu-
| tuition. 80
we can guess az the intention Of the
| fatbers Of the Constitution I'm this direc-
tion bv reading Article !. Section 10 par
agraph !. of this instrument, when ue-
clarcs that:
"No state shall enter into any treaty OF
| alliance or confederation. grant letters
of marque and reprisal; coin money emit
| bills of credit: make anything but gold
and silver coin a tender I'm the payment
| OF debit
Tbis would seem to indicate that tho
function Of supplying money and its
! substitutes bills Of credit for the use Of
the people. was one Of the reservations
belonging entirely to the general govern
ment. The only authority for state
! hanks of issue would then seem TO be
| permissive. because not expressly forbid
den and TO rest entirely on the doubt
/ ful position that n sovereign state has
! the power to delegate 10 one OF it's citizens
n privilege which itself cannot constitu-
| tionallv exercise. The highest written
| law Of the land. the accepted and ac-
knowledeed arbiter OF states ~ co-or-
dinate party Of general nationality. PLAIN
/ " and emphatically declares that no state
| shall furnish 10 its citizens substitutes Tor
| money Ohils of credit. and yet can le-
! Callv authorize one Of its citizens 10 do
! so not only appears 10 be contradictory
! but perfectly nugatory as well. That
| state banks were convenient and very
useful before the war. no ono familiar
with our history will deny. and 50 were
! the tallow dips and muddy oils then
In use for Illuminating purposes. but
/ neither furnishes a reason why we should
20 back TO them now. having become ac-
| customod TO safer and better eystemi
far more satisfactory 20 advanced civil
cation.
This whole theory Of state banks OF
issue is too strongly Favored with the
fatal weakness Of Lots wife 10 commend
Il favorahly 10 progressive minds while
n inrcnuouslv suggests similar results.
without the saving salt
While 7 am neither the champion OF
national banks. or even an apoloeist for
them. 7 am still unfavorahlc either 10
Winning them ont or attempting 10 float.
I'm connection with them. currency less
safe. and IN every wav less desirable. for
the reason that Mr.. Royal assigns that
"thc inferior currency will drive out the
good
The national banking system was the
product OF an emergency and having
successfully served the purposes Tor
which n was called into existence II
should long since have been modified
TO meet the new conditions. which de-
mand more liberality and fewer special
privileges
) As now organized there Is neither
induCement nor obligation on the part
or the national banker 20 meet the wants
OF expanding trade or increasing popula-
ton. hv utilizing tho maximum amount
OF circulation allowed under his capital
| II confines the banker entirely 10 United
states bonds. and only 90 per cent. Of the
face value Of them as a basis or issue.
thus ignoring and depreciating all other
representatives Of wealth. While IN
tended N be an institution guaranteeing
safety and convenience II really offers the
opportunity for the exercise Of the most
! avaricious cupidity that the cold-hlooded
, money hunter could possibly desire. Ana
, / vet with all Of these Objectionable iea-
| turse there are few people who would
willingly exchange back 70 state banks
with governmental supervision and So
, curjtv OF our banking system the admis-
sion Of other forms Of representatives or
wealth as the basis OF issue an additional
, security for the depositor and repeal OF
! an national taxation on issues We could
= reasonably hone 10 have II nearly per-
feet. The value Of the circulating me-
dunn would bc certified by the national
- government the depositor inspired with
. ! confidence and the volume I'm circulation
a regulated entirely by the demands Of bus
\ mess.
h III object 10 the resurrection Of ghostlv
o "reminiscences il IS because | am consti-
r tutionally opposed 20 crawnshing I'm this
5 age OF brilliant progress and almost in
A conceivable invention. II object TO de-
= preriated substitutes and thiniv-veiled
{ subterfuges II is because the condition Of
Z public sentiment demands an honest.
G straightforward response TO prayers for