The times. [volume] (Richmond, Va.) 1890-1903, 1898-08-19
FRIDAY. AUGUST 10. 1898.
OUR GREATEST NEED.


One OF the New York papers reports
that banks in that city are beginning TO
receive applications for currency from
hanks I'm the South for the purpose of
harvesting the crops. developing the fact
that the United States treasury viii not
and practically cannot, make the trans
fer of currency for the banks in New
York 20 the South and West at ms
time except IN return for currency rs
IL has not any currency to spare That
the sub-treasury refused the other day
10 transfer 100000 I'm currency TO bank
I'm the South in exchange for gold de-
posted there by the Southern bank
agent. Nor have tho New York banks
any currency TO spare and the result IS,
II goes on that those banks I'm the South
and West that want small money for
harvest purposes viii have 20 be content
with gold. on which they must pay the
express freight at bankers rates. the
gold being shipped TO them direct by
their agents IN New York. until such
time rs more currency is available.
The banks. says our contemporary,
would avail themselves Of circulation for
this emergency. but thoy cannot get
the United states bonds fast enough Tor
that purpose; besides they do not care
10 pay the premiums the new bonds are
commanding. Many Of the banks. IT
concludes had the necessary circulation
urintod IN readiness for the present de-
mand for money for harvest purposes
expecting to get some Of the new gov
eminent bonds. Their failure TO 90 so
and the scarcity or other forms of cur
rency win compel them. il is sn'd. to
ship gold to their customers in the South
and West.
There are two interesting suggestions
here. our free silver friends have been
very fond Of talking about gold as the
money OF the rich man, and of calling
attention 10 the fact that gold does not
circulate generally among the plain peo-
pie" 1t VIII be seen from this, how
ever. that gold is a drug on the mar
ket. that the government and the banks
have more Of it than they know what to
do with and particularly that there IS no
demand for it as currency because the
banks and the people prefer notes. When
gold is taken It is usually under protest.
People do not care 10 be troubled with
Il. preforring its equivalent in paper or
fractional silver.
The main point, however, Of the article
from which we quote, Is that under our
miserable financial system a currency
drought every now and then is unavoid-
able The government and the national
banl.s cannot supply It according 70 the
demlnds OF trade The government has
not the currency. and Is not permitted
10 issue it except under certain iron
clad regulations. and the national banks
cannot issue II unless they have govern
rnent bonds as "A basis And so the peo-
pie must so wanting. whereas If we had
a system of local banks Of issue which
should be permitted TO issue notes upon
their own authority In response TO the
demands OF trade that demand would
always be promptly supplied. and the
currency would be expanded or curtailed
according 60 the demand.
But the Republicans on the one hand
and the silver Democrats on the other
oppose state banks of issue and demand
that al the currency shall be issued di-
rectly or indirectly by the government.
II the government would only stop inter
fering and let trade have its own way.
the currency problem would very soon
solve itself.