The times. [volume] (Richmond, Va.) 1890-1903, 1902-03-08
SATURDAY. MARCH s. 1902.
OUR CURRENCY system.


OUR CURRENCY system.
Although this country is rich In re-
SOURCES, although its wealth is greater
than ever before known, although there
Is more money in volume and more per
canita than ever in our history. and al
though there is little speculation in the
atock market. there Is scarcity of money
for legitimate purposes. Every now
and then danger signals are 1aise1 in
wal, Street and the country is warned
that the money supply is running short
Then the Government endeavors to come
to the aic of the bankers by redeeming
bonds, or l-y anticipating Interest or
fy other devices which can at best az
ford but temporary relief.
1t is. a reflection upon our intelligence
that this condition should be permitted
TO continue. In the current numper
of the North American Review the ques-.
ton is ably discussed by Mr.. j. II. Wal
ker who was chairman Of the Committee
on Barking and Currency in the Fifty
fourth and Fifty-ffth Congresses. hlr.
IN 3
r,rising that this country, which has Ia
ken the lead in commerce and manu-
featuring, should have a treasury and
banking system which is crude unseien-
1ific and wasteful. Everybody knows
r,,a. a wrctciled system we have; the
question of the hour is. how can we
remedy 1t? Mr. Walker, after referring
TO the act of March IA. 1900. says that
there is no further relief possible through
legislation to the national banking and
treasury system except by bringing it into
harmony with natural financial law:
First by relieving the United States
Treasury from current redemption of
any form of paper money! function
which is assumed by no other pubic
treasury:
Second, by devolving upon the banks, the
ALLEGATION of maintaining rarity between
nil kinds of mcney-a function which is
norma. IL banks and is required Of them
by law in every other country;
s.Third by allowing banks to issue true
hank currency-tllat is. currency against
their general assets, which is one Of the
chief functions of banks OF deposit, loan
and discount and is performed by banks
3n every other country:
Fourth, by securely uniting all the
commercial banks in the country, through
The existing clearinghouse, into solid
union TO maintain parity, by GROWING
them with national clearing house, but
md
as now for every other purpose.
The main feature of this plan is free
banking. for which The Times has con-
tended during many years. Tho Govern
1nent has tried all sorts Of experiments
ana all sorts of devices have been at
tempted, but RELIEF will never come un-
ill the ubiquitous tax upon State bank
issues has Eeen repealed ard the banks
1,erIniated to issue notes against their
assets. That tax is a standing affront to
The Times and to all true Democrats in
The land. Mr.. Sherman in his book
sole purpose OF preventing State banks
from issuing currency. It was not In
tended as a revenue measure. 1t was
designed as prohibitory measure and
TO aid in crushing out State banks OF
issue. 1t is a wicked perversicn of the
taxing power ard it should not be toll
Grated by free people If the Govern
ment may legally use this power to
crush out sucn banks, it may logically
employ it to crush out any other branch
of business, and SO the taxing power
would become. in the hands of tyrants, a
most dangerous instrument of oppres-
sion.
There IS r. 1ch more in Mr.. Walkers
article, to which we would refer, but
space is limited. We hope TO take the
subject up at another time.