The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-16

snoat the gold and silver now estimated 10 b
SIG GOO 600 which would DO increased Dy me 1aie
the real contraction would not be oppressive or
severe.
$500 900. 900 IN round numbers, with the power 0!
substitution OF bank notes for $780, 900 OF Legal
tenders, subject 10 expansion and contraction Of
amount by the demands OF trade and the ability Of
banks 10 redeem.
THIS would still give US an aggregate of paper
money one and hall times greater than WAS
wanted before the wal, with population In
creased by only onethird.
How can we secure a uniform and stable circup
laton win system OF Tree banking applicable 70
oil the States and under state supervision
Ffrst-Let the federal government issue the ctr.
culation OF the country.
Second-CircuIation shall be issued only to banks
duly organized under the laws Of the State wherein
located.
requsiton OF the State department which exer-
cises supervisory power over IT, receive ~ much
circulation as 1t shall deposit United states bonds
demption OF ITS bills.
FoiTth-rhe bills issued to one bank shall pre-
nation issued TO any other bank, except the i'm.
print OF the bill OF the name aud location OF the
ana by what bank redeemable.
Fytt-Au circulation so issued shall be re.
ssece At One enc or none e ~reat n
OF the country.
Strth-Al bills to be sent in the nrst instance 70
the Banking Department or other State depart
ment authorized by law In the several states, Tor
registration before delivery to the hanks.
iSeUenth-The organization, direction and super.
vision OF all banks, the rate OF interest paid ana
all the practical details OF banking to be lett to the
Legislation OF the several states.
The Tree banking system OF New York was
garded as the most perfect which was ever devised
Drior to the establishment OF the national plan.
The national system Is one or the products OF war.
1t Is equal proof OF the soundness and excellence
OF our Free Banking law that the national law 1874
transcript IN the most OF It's essential features anC
fundamental principles nom the New York laws
IL Is in the novel and distinctive characteristics Of
nIa nor fhn nra hnfA
most serious Jars are found In the practical ope
ratons OF the national banks. Hence the national
scheme furnishes 0Otn positive and negative testt
mOny or the superiority OF the New York plan.
Approximations OF an excess or paper money, IL.
sued by banks under the exactlng conditions OF
making It's value coordinate with gold need NOS
be discussed or entertained and any device which
undertakes to create circulating medium Tor the
measures OF values resting on the theory OF prom.
ises to pay, instead OF payment ITSELF Will prove to
be u fantasy and fraud.
Public exigencies may be 80 great and perilous
as to justify desperate remedies to MAINTAIN ma
tiOnal existence; but, when the Crisis Is past aud
the danger is removed, sober judgment and en-
llghtened experience should lead us back to SAFE
harbOrS and secure anchorage.
speedy resumption OF specie payments uni.
form, stable, redecmaDe currency, and q return
10 state banking, VIII prove powerful factors, TO
be employed IN the solution OF the grand problem
OF the future growth and material prosperity OF
the Republic.
The state of New York, foremost IN population
wealth and commerce, prompted by common In.
terest with her sister States, should occupy No
eQulvOcal position on the subject OF finance. REQ
Ognzing the truths OF historv-the lessons OF the
past, the needs of the uture-it should be duty
as well as pride to leau the effort 10 plant the
standard of a sound currency on solid aud endur.
ing foundations.