The times. [volume] (Richmond, Va.) 1890-1903, 1898-06-29
MATHEW MARsHALL's ERRORS.

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MATHEW MARSHALL'S ERRORS.
More than once we have commented
upon the writings Of a person who signs
himself Mathew Marshall. and who writes
a column in the New York Sun every
Monday. Mathew Marshall is undoubted-
| ~ q vigorous writer. and he has some
! very correct ideas upon some subjects.
| But, considering his surroundings, he has
the very worst ideas regarding finance
and currency that it is possible for
man TO have. Here is an extract from
one Of his most recent deliveries. lie
says:
1t used 10 be urged in favor Of banks
| that they are indispensable agents in pro-
/ curing money for the Government by
| buying its bonds when it needs 10 sell
! them. and that without their help no
! bonds could be sold. This superstition
! has received its death blow from the
| experience we are now having. Instead
! of the Government being obliged TO beg
| assistance from the banks in selling IT'S
| bonds. il is the banks which are beg
| glng the Government as favor 10 let
| them have the bonds to sell. They never,
| indeed. bought bonds with their own
| money. but used for the purpose the
| mony Of their depositors. and now thdt
the depositors are permitted TO do 1t di-
rectly. they are buying the bonds with
| out paying toll 20 the banks.
The legitimate function OF banks IS 10
receive money on deposit and lend It
out The issuing of notes TO serve as
money is a usurpation of a prerogative
which properly belongs TO the Govern
mcnt only. and which should never be
dolcpated except 20 agencies controlled
| hv the Government and responsible 10 il.
| TO ascribc TO bank currency virtue not
| possoSsod by Government notes Is pure
| fetish worship. which advancing onlght-
eminent IS bound TO destroy, and Which
| no rational citizen ought 10 encourage.
J Tho pcOple are entitled 10 the best and
I safest money that can be furnished them
| and there IS no money 50 safe and so
GOOD as that issued by the Government
| and secured by the entire wealth Of the
nation. To ask us to accept. in place OF
this. the notes Of thousands Of little
hanks. managed by thousands Of men or
moderate abilities. at the best. and ire
| oucntlv. as we sec. not entitled 10 any
confidence whatever. IS sheer lunacy.
Here is the whole Populst doctrine. II
Is not stated in exactly the same words
that tho Populist uses. but the founda-
ton idea OF Mathew Marshall as Of the
= opulist is that money comes out OF
the Government as water runs out OF a
hillside and that money gets its value
from something granted 10 1t by the
Government instead Of having its own
value depending upon the fact that men
desire the material that it IS made Of
It is most surprising to find man
who lives in Wall street and is thorough
" conversant with Wall street ideas and
methods. so radically wrong upon the
foundation proposition Of all trade and
commerce. But there IS not dusky
denizen Of the jungles on the Congo who
IS more ignorant of the elementary idea
OF money than Mathew Marshall is, and
while his false ideas have cost this coun-
try thousands Of millions Of dollars in
the past ten years, he goes on circulating
and spreading them through the col
unns of the New York Sun just as
though the election OF 1896 had not de-
oided that our finances are 10 be based
upon the theory that money has its own
value Independent Of law, and Just as
though this country had not been ever
since upon an upward movement towards
where it stood when that was the pre-
yailing idea in the land.
Where did Mathew Marshall get the
notion that banks are confined, by their
true functions 10 receiving money as de-
posit and lending it out and are debarred
by their nature from issuing notes that
are TO be used as currency?
If he is resting upon his inner con-
k,iousness OF the inherent right Of
things, that is one thing. But If we are
10 assume that mans experience furn-
ishes the best evidence Of what is good
for man. surely no contestant was ever
more thoroughly confuted by the rec
ord.
For two hundred years England has
had ono great central bank that has al
ways had out vast number Of its circu-
| lating notes which have been. In all the
time. The very back bone Of all Of her
trade and commerce. in addition TO this
| great central bank she has all the time
| had great number Of small local banks
| klAk HAAt always nAA Nuk great AhaAAl-
ties OF their circulating notes. which,
being unknown away from their place
Of issue have been at discount away
from home. but have served the people
who lived near the banks issuing them
most admirably. For one hundred years
France has had a great central bank that
at alltmes has had out a great quantity
OF its notes that have served the people
a most useful purpose, and the record
could be extended all over Europe. From
the time we established our national
government UNTIL during tho civil war,
svo yielded 10 the fatal temptation OF al
lowing the general government TO control
our paper currency. our whole financial
system rested upon the theory OF the
paper currency being furnished by banks
aud surely no country ever grew and
prosrered as this one did from the time
that It got well poised in its career until
the civil war.
Instead OF paper currency having its