The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-04-12
A NEW YORK BANKERS VIEW OF
INFLATION.
View York Herald.l

View York Herald.l
| Mr.. John E. Williams, President of the
Metropolitan National Bank, declared that
the issue Of the sls,OOO,OOO Of the reserve
was good thing for the country. He said
! it would be folly not to increase the volume
Of the circulating medium now. The needs
| of the country demand it. He had nothing
but feeling of pity for those men who
talked about the danger of the futa ;"
| that would be brought about by the in
crease. They did not SEEN to take into con-
sideration, he said, the fast that since twelve
years ago our population has increased by
millions. And yet, when it was proposed to
issue enough currency 40 go around a howl
was set up about the Iain that was to be the
result. In his opinion, if in tive or three
years from now another issue should be
found necessary, ard we were in the same
position we are now he would regard the
fact as an evidence that the country was
prosperous
Talk about the legal tender being only
so many promises to pay said he; "why,
they are guaranteed by everything that can
be called the property of the United States.
They are guaranteed by the same authority
as the seven-thirry bonds for instance, and
if man Is willing to take $1,000 bond
from that authority where is the sense i'll
his talking about $1,000 note issued by 1t
dent OF this blak was not willing to have
his name mentioned in the paper, and re-
fused 20 converse with the reporter, as a re-
porter, it may be as well to show. by the
speech of Mr. John +. Williams, made at a
meeting of the Clearing House Association,
on the 9th Of September last, what he
thinks about initiation. In that speech he
! said:
"What is the matter 7 The matter is
simply this-we are too rich in wheat, pork
and cotton for our financial pocket. That's
all. Don't be alarmed. We aHe not poor,
we are not frightened; we only are in want
of a few millions of greenbaeks to take the
plaee-and little more-of those we have
sent West to move wheat East. The lner-
chants are sound; the country is sound.
We are richer to-day than we ever were be-
FORE but our volume OF currency is too
small for practical uses Are we indeed so
far behind our cousins as not be able to help
ourselves to the needed remedy when it is
within our reach Can it be possible that
all the capital, the surplus funds and de-
posits of the New York banks are not good
tor "a Treasury deposit of $3O,OOO,OOO or
$40 100000 of Treasury nOtess But the
banks must be refused because there is no
specific law to direct a technical officer of
the Treasury in this case! Such deposit in
the associated banks of New York would
cure this brokers' panic-and that's all it
is-in fifteen minutes and, most likely, not
one quarter of the amount would be
touched.
l say again, sir, you are made poor by
your substantial riches, and by neglect of
those who ought to provide all the currency
necessary to do the business OF the country
without jar or friction. This is what is the
matter, simply and truly. Now. for the
| l. = Al
of England. in 1913 and 1874, received its
present charter, Sir Robert Peel separated
the discount from the issue department.. He
gave us in this country credit for the idea,
which originated in the law of this State,
passed in 1888. That was the first law ever
passed in the civilized world that required
banks bills to be secured outside and ride
pendent of the bank. The English states
men saw and caught the idea. They
partially adopted it. They made the
maximum Of circulation of 100000, the
amount the Government owed the bank.
Then all the circulation above that was to
be secured to the bank by deposit OF an
equal amount in coin.
Now this, to us S7O,OOO,OOO circulation,
seems a mere bagatelle, and it would be to
this vast country. And the bank has three
times since 1874 had to increase the volume
by paying out its reserved notes in violation
of its charter. 1t does not hesitate to do so
whenever an expectation of coin is excessive
or the ratd of interest isuncomfortably high.
What then. Then the bank applies to Par
lament for an act Of indemnity, and it is
granted forthwith. This, then, is our
remedy. The Treasury holds $44,OO0,OOO Of
treasury notes, which ought to be used pre-
cisely as the Bank of England uses hers I'M
der similar circumstances. In England the
bank don't ask consent; it meets the press
ing wants of the community with sure and
immediate remedy-the issue of more notes: