The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1875-03-06
4 National Currency.

4 National Currency.
The Bankers Magazine for February pub
fishes letter from constant reader who
seems to understand the peculiar conditions
and needs of American finances far better
than aost writers. 1t is not so much reply
TO the suggestions made some time ago by
Mr. John f. Williams, Of the Metropolitan
Bank, Us II general approval, with specific
notifications. Mr.. Williams contends that
Congress should assume the prerogative of
! furnishing all the inhabitants OF the United
States with uniform national currency, and
maintains that the profits to be derived by
the use OF notes, convertible into gold on de-
mand, ought to accrue to the people, and not
! to the national banks. This view the writer
IN question approves and supports. lie says
that the people would gain all the national
banks would lose, and The loss to the banks
would be recovered from customers and more
than made coed by the removal OF restric-
tons He objects to the limit set by Mr..
! Williams at $3.50 100000 The circulation
should be, as it is in England, self-regulating
! Furthermore, the notes should be, like those
of the Bank of England and the Dominion
of Canada, legal tenders everywhere but at
the office of redemption in gold in New York.
! They should be receivable for customs and
excise duties, and would be held as reserves
| by the national banks. The effect would be
to cconomize gold to the utmost possible de-
gree without dcprcciatlng the value Of the
notes.
Another point made by this writer is ia re-
ply to the proposition OF Mr.. Williams that
the legal tenders now outstanding shall be re
deemed in specie In reference to this he
says; such policy would lead to serious
disturbance IN all commercial and financial
transactions, and would not be consistent
with justice. 1t is in my judgment, the fatal
error in all schemes that | have seen pro
pounded for the resumption of specie pay
ments. l look on 1t as essential to any equl
table scheme of resumption that there shall
be new issue of notes redeemablc ia gold
and that the present legal tenders and nation
al bank notes shall be called in, the new notes
being exchanged for them at IL premium tc
be fixed by law, and which shall not be less
than ten per cent. All transactions prior tc
the date fixed for the resumption of specie
payments should be settled by the old cur
rency, unless, of course, they should be paya
BILE by special agreement in gold. BY such
an arrangement all disturbance in CONNER
evident that the writer is an experienced
financer; for in the above suggestion he
touches the pith and marrow Of the whole
difficulty, and the practicability OF his propo
sition Is in striking contrast 10 the dOctJla0iy,
scheme for resumption by cremation. The
writer thinks this plan would not lead to an
undue expansion of the currency, as the
Treasury notes would be convertible into gold
on demand. This is the real safeguard. He
says: 81 should rel )ice if the Treasury of
the United States were authorized to furnish
the entire national currency and receive the
profit derived from it for the nation" when
once resumption of specie payments shall
have taken place there will be no contraction
of the circulation" This is another way OF
reaching the point we have repeatedly urged
through the formation of national baah
The finances of the country must have ma
tional regulator and head. One good thing
accomplished by the war was depriving the
petty banks OF the power to manufacture bills
for circulation as money. 1t gave us ma
tional currency, but unfortunately of man 4,
kinds instead of one, If anything is abso.
lutely certain it is that the finances of the
country will never reach stable condition
till they are unified IN some way and brought
under the control of some national head
working on some definite and wisely adjust.
ed system One strong argument In favor of
a national bank is that it could be entirely
disconnected from politics. But with a thor.
ough and efficient civil service system It's
functions might be discharged by the Nation.
al Treasury in some such way as this evi
IDENTIFY accomplished and experienced finan
cier has indicatcd.-N, J. Graphic.