The times. [volume] (Richmond, Va.) 1890-1903, 1898-06-04
SATURDAY. JUNE T. 1898.
rur TIMES MI

THE TIMES AND THE PILOT
we print in another column an editorial
article from the Norfolk Virginian and
pilot headed. For Spells only" which
we hone every reader Of The Times Will
read. We want cur contemporary to
have the fullest benefit Of it's argument
and we also want our readers TO see a
speciment Of Populistic and free-coiner
argumtnt. We think every candid man
will say. after reading this, that it con-
sis.s principally in denunciation Of the
adversary.
The foundation error Of the Nirsinian
and PILOT. as Of all the Populists ana free
o%oiners. is in thinking that the business
of the country is conducted by buying
and selling for ~money-cash in hand
money. But tina is the greatest error in
the world. That was so to a very great
extent when we had no steam and cleo
tricity. Then a man journeyed from one
place to another far of one, in search OF
some commodity that he wanted, and he
carried in his pocket the coin that he
proposed to exchange for the commod-
ity. A great deal of actual money was
necessary. therefore, in those days. But
that is not the case now. The railroads
and the telegraphs enable men in separat-
ed localities to buy and sell without any
money at all The man in Washington
county sends a train load Of wheat 10
Richmond and draws a draft against the
value of it in dollars. which he puts into
the Abingdon bank for collection. A
Richmond merchant ships a train load of
fertilizer to Washington county and
draws a draft against it in dollars and
puts it into a Richmond ban for collec-
ton. These two drafts meet each other
in the banks and are exchanged. and so
this very large transaction is closed with
out the use Of one dollar Of money.
Now, that is the nature Of almost every
commercial transaction of any size. Bus
mess is not. as the Populists and free
coiners imagine. & purchase and sale Of
commodities for mnney. 1t is an ex-
change Of the commodities of one local
ity for the commodities Of another. local
ly effected in the terms of dollars and
cents, but really an exchange OF com
modities only effected by swaps in the
banks Of the credit values Of the COM
modities.
Now it ought TO be evident to the most
casual observer that the absolute and in
dispensable conditions to these exchanges
through their credit values is that each
commodity shall be valued by one and
the same standard Of value. If one is
valued by a gold dollar worth one hum
dred cents. and the other is valued by a
silver dollar worth forty-four cents,
though the draft drawn in each case will
be for five thousand dollars, yet one
draft will call for one value and the other
draft will call for a very different value
and the exchange OF drafts will not be
made. These credits. since VIC have OBJ
tanned steam and electricity, are the real
money with which business is done. and
a fixed and single standard Of value is
absolutely indispensable to these credits.
IT, therefore. the free-coiners succeeded
in thrusting his silver dollar in as a
STANDARD Of value. he would either drive
ali gold away or he would break up the
whole system OF credits. IL he broke UP
credits he would destroy more money at
one blow than all the minis Of the world
could coin in a hundred years.
The free-coiners and Populists are right
in thinking a vast amount OF money Is
necessary 20 business. But under modern
conditions. It is representative money and
not actual money that is used. Credits
are the real money of commerce. and as
confidence IS increased this credit money
Is Increased. AS confidence is impaired
by threatening to redeem the representa-
tive money with deprecated coin. the ac-
tual money with which business Is done
Is diminished.
what the country wants. then. Is a
fixed standard Of value that no man shall
be allowed TO tamper with. and then per-
feet freedom 10 every man to create and
pass credits redeemable on demand In
the standard OF value. When that Is the
case redemptions are never called for. but
transactions arc settled by exchanges OF
credits IN the banks and the smallest and
most insignificant sum OF the standard
Of value Is all that is required.
This ought to demonstrate that the real