The times. [volume] (Richmond, Va.) 1890-1903, 1898-08-09
A DISEASE AND A REMEDY.

DISEASE AMI a
The Pulaski News-Rcview reproducea
an article from this paper on currency
reform and expresses its satisfaction
chat for once we and prominent gold
organ agree on any one feature Of imam
cerlng" but regrets that 1t differs so
widely from The Times I'm our solution
OF the problem j objects seriously 10
state banks Of issue for two reasons.
First. that the Chicago platform depre-
Gates an banks Of issue, both State and
national. and second. because any priv
nege granted 10y the general govern
mcnt to a local bank 10 issue paper and
draw interest on It is an injustice 90 the
private citizen who is not O. bank stock
holder
We have always understood Sc our
contemporary understands, that the
Chicago platform declared against State
banks OF issue. but prominent leaders Of
the party I'm Virginia do not so coustrue
the plank relating to that subject. The
platform "denounces the issuance OF
notes intended TO circulate as money Joy
national banks" and demands that on
paper which is made legal tender for
public and private debts. or which is
receivable for duties 10 the United
States shall be issued by the government
of the United states and shall be re-
decmable in coin"
one Of the most prominent or tho Nir-
ginia delegates TO the Chicago conven-
ton has given us his assurance that the
language Of this clause in the platform
was so modified as not 20 commit the
party to absolute opposition 10 state
banks OF issue. but simply 10 the prime
ciple that an legal tender notes should
be issued boy the government However,
that may De. It is certainly no argument.
except from o. narrow. partisan stand
point 10 oppose local banks OF issuo
simply because the Chicago convention
opposed them. Our contemporary sure-
" has not forgotten that the convention
OF 1892 came ont fat-footed in favor Of
the repeal of the tax on State bank is-
sues. and the Democratic party Virginia
I'm the convention Of 1898 also committed
itself TO the repeal Of that tax.
We fail also to see the force also Of
the second argument We do not see
how It could possibly he any injustice
90 nm individual citizen TO permit local
bank 20 issue circulating notes, Cor any
individual who desired 10 do SO would
be privileged either 10 start bank OF
his own or TO take stock in bank
already I'm existence We do think.
however. and that IS what we oppose
on principle that IL Is a gross injustice
for the government TO permit national
banks to issue notes and by taxation to
prohibit State banks from enjoying the
same privilege.
Lastly our Pulaski contemporary
thinks that the general government
should have exclusive right to issue cur
rency for the reason that II this privi-
lege were given 20 the banks Of the
country they might unduly contract the
circulation and make money scarce TO
their own advantage
on the contrary We believe that the
great trouble in our currency system to-
day Is that 1t is impossible for the gov
erment 20 expand and contract the
currency according TO the needs of trade.
The administrative officers have no dis
erection I'm this matter We had am apt
illustration of this in the case Of the
treasury notes. Congress passed an ar
bitrary law that these notes should be
roissued as fast as they were redeemed.
and although the government would
gladly have retired them as fast as they
we're redeemed in gold IN order 10 prevent
aids upon the gold reserve, as soon as the
gold was paid out in exchange, the notes
were Immediately relssued. and the Same
note could thus be made TO do duty
time and again in robbng the treasury
OF its gold Hence the large issue OF
United states bonds 90 keep the reserve
intact
There is but one way TO supply the
people with al the currency that they
need and no more. and that is by the
natural law OF supply and demand.
Give the banks Of the country the priv-
lcge 70 issue notes. and those notes will
regularly be issued and called in accord
ing as the demand increases or de-
creases. II would be manifestly impos-
slble under such system for all the
hanks OF the country 10 conspire togoth-
or to contract the currency for such
an effort would necessarily defeat itself.
To contract the currency and make
money dcarer void be the greatest sort
OF inducoment 10 banks. either IN or out
OF the combination. 10 issue notes free
~ and supply the demand.