The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-29
ydia E. Pinkham' s Vegetable g Compound

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this statement well, for upon it every
thing else turns. @ }
h"Of course 1t is an exaggeration to
say that all the persons interested in
bacon and cotton met together. The
idea intended to be presented is that
the price at which the articles come
to be sold is the average and summary
Of opinions upon the subject silently
codihed by the law OF supply and de-
1nand. "a l5ss 5s ss4
4 ""But the, value Of Il each commodity
being ascertained ltby comparing the
commodity and the coin under the law
OF supply and demand, exchange Of I
the commodities became very simple
through transfer Of the credit values
the banks And the next important
fact came intoEview that money played I
no part in the transaction except to fix
the cxchangeable values Of the COM
modities. sssf It'll
y 55EE"If this reasoning be sound, then tho
next great fact that comes to our at
tention is that the great function Of
the dollan-of money--is to do duty as
a standard Of value, and not as an
&dSeilCyFilll 7OpcIdll IL Liz MS
Of business at ALL as Is SO generally |
but erroneously believed. And in this
connection we see that the5value of the
dollar depends, like the value of every
thing else, up on the law of supply and
demand. and not upon the labor re-
CURED to dig 1t out of the earth, as Is
SO often declared by. writer's Of more
or less reputation. You may put all \
the labor you please sintoadigging out;
n 11or hitt tf,or fc n ri for
4it,&it will have no value IN ~ ~.
For q proper comprehension of cur
rency, then, the great fundamental
fact Must be recognized that in this
day of steam and electricity, Of tele-
graph and telephone, business is 10th
ing but exchange Of credits. The prop
erty of the country, personal and real.
| stands at the back of these credits to
| make them good. I cannot in the.
! space allowed me here, go into an ex-
PLANTATION OF this subject in detail, but
the Neale Publishing. Company. OF New.
isYork, has just publishe book for
! me, called "A History OF Virginia
Banks and Banking Prior to the Civil
War, with an Essay on the Banking
/ System Needed and any one inter-
ested In the matter win find it fully
lse2plained there. lj3 ss ss
1T I am 5rtght,sthen, in what I have
said, the cla1nor for'5more currency
notes misses the mark. 1t is not cur
rency notes that are needed. but per-
fleet freedom to the banks In creating
credits upon which men can check.
ITO Illustrate the subject while
lam carrying it forward. let me say
that there Is not banker before me
who will mot lend me 100000 although
he has not a dollar Of coin or cur
rency notes on hand. II + bring him
100000 of government bonds and he
is assured that all that he lends me
will be drawn out by checks that are
simply charged up from my account
to the account OF some one else. Now.
are safe In lending upon good coll
lateral II they have In their vaults
15 per cent. In current funds Of the
amount loaned. In all loans, then, SIS
per cent. OF the amount loaned Is bank =
created money, 30 that when we come
to look at the MAJ tier nearly, we see
that the banks Of the country are, or
ought to be, is lnints. II that is SO,
what need Is there for coin or cur
rency after retail affairs and out-of-
the-way places are provided for except
for bank reserves? There is alb soutely
none. Bank credits and not currency
notes are the thing we wa Mt. in 7 lay
down this broad proposition, tn en- that
all the coin and currency notes that
we need are enough for retail trans
actions for out-of-the-way places
where checks will not serve, and for
I the reserves Of the banks. All the
I rest Is an agency not needed. HI
\ We need, then, Syast quantities OF
I the sort of money that the banks
I create, and comparatively little OF tho
! other kind Free the banks, til en-, and
they will give US all the money we
I want. In the book91 have referred tic
/ have brought forward scheme 10,
! the banks to create In an eyenine
] all the money that wants, and 7 vii
I here give O brief outline of5the scheme
1 t''lt;is useless to talk to the people OF
1 this country Of notes that are not SC
4 cured by government bonds. It is alst
j useless to expect them to put govern
d lment bonds behind banks notes IN
II less the government Is secured agans
III loss. In any scheme these cssential
Il must be provided for. "A N
d me first thing to be done Is to re.
II Pea. that provision l OF the Il nationa
banking law which limits the amour
III that one customer can borrow. Let an,
man borrow as much as he can Civ
I good security for, There will be plent
] Ior al, am going to give you q pla1
that Will enable the banks to accom-
4 modate al with all that each wants
I Panlcs all start In New Y ork. ant
] y they are crushed out us soon as the
commence there the country is neve
s hurt ny them, andsif the banks thor,
y are put In position to crush them W
near little Of the money needed else
IN where TO graphic with them. "a
b Let the government keep on deposit
at the sub.reasury&in New York $500,
Oo0,000 OF Its bonds that bear no In
terest a bank which wants to kee
] Itself prepared to create emergenc
money Will keep on deposit with til
u snbtreasury It New York Z as man,
n OF ITS notes fully executed and read
ior issue MS 1t may think 1t Will war
IA 10 1asnei tho government guaranteen
the bank immediate payment Of an
I \ loss II may sustain by any of Its note
being improperly issued. Tho SecretuI
OF the Treasury Will be given power
Isl send any order from Washington
me subtreasnry at New X ork by tele
graph or telephone that ha could civ
u by writing. The City Bank Of Ne,
Yo.k wants to isnue $4,000 900 OF i,
~ notes tomorrow morning. It goes