Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-10-29
THE rpMUxps COMPRESSION.

| A washington special says that the Ed
munds Monetary Commission, which Is 70
reassemble in that city on November 90
| TO make ND its report on the measure 1t
is to propose for reform Ia our banking
and currency system. put several ques-
lions TO financial experts, the tenor Oh
| the replies to which Is to cemohsh the
rather widespread notion that there Is
a desire among men OF this class Tor the
withdrawal OF the greenbacks ana Irea-
| sury notes.
New England contemporary. In COM
nenting on this. says:
'rhe great mass OF the American people
has no desire to change from currency
system resting on government creoit To
one resting on bank credit. sucn
change would arouse both their fears ana
their resentment. They know that TOT
nearly twenty years the greenbacks nave
been maintained at par with goid IN
every corner of the Unitd STATES Ihey
know that when this country had cur
rency system resting on bank creolts
there was very different story TO tell
We are not so sure that the feehng
against a change Of the basis OF currency
credit is as great among the masses as
our contemporary thinks 1t Is. But,
granting that we are mistaken. what Is
the secret of the popularity OF currency
system resting on government circuit!
The people at large do not differentiate
the greenback and the Treasury note
from the national-bank note. Inc
strength of the present currency system
lies in the fact that the holder of note
whether that note be a greenback'
Treasury note, or a nat.onal-bank note'
knows he is secure, and in the exaggera-
ton of the evils of the old State bank
system.
But although the evils Of this latter
system are often grossly misrepresented.
and this Misrepresentation Is generally
inspired by the national banking and
speculative interests in the great imam
cial centres, with few exceptions, the
most ardent advocates Of State banks OF
issue would not return to the old State
bank system Of currency credit They
would have somthlng better. They recog-
nize the necessity of affording the
note-holder ample security. and Of keep
ing the notes of the several banks on
parity throughout the country.
However, the question Of banking ana
currency reform turns not so much upon
the adoption of this or that basis of cur
rency credits, provided whatever basis is
adopted is sound, as upon giving the
country more currency and a system oil
banking that will prevent the contraction
of the currency and its congestion In
financial centres when just the opposite
conditions are demanded in order to keep
business moving. No change In or I'M
provement upon the present basis OF
credit will cure the crying evil OF our
banking and currency system If 1t falls
to meet the business demand We have |
noted. Furthermore no system the COM
mission may recommend will satisfy the |
masses unless 1t meets that demand. The |
basis Of currency credit is only the start |
ing point in the matter OF solving the |
financial problem in the interests Of busi- |
ness and the people, and safeguarding the |
country from the dangers Of commercial |
pancs and long seasons Of financial de-
preston, brought about by the speculative !
element to serve its own purposes.