Mexico weekly ledger. (Mexico, Mo.) 1855-1956, 1881-09-01
THE BANKERS "THE FUTURE OF
OUR CURRENCY"

Alter all the bankers, at their late
convention at Niagara, did not pass
upon 'sThe future Of our currency"
Whether those gentlemen thought the
country would eventually provide for
its monetary wants Independently Of
them, or whether it would have been
impossible for such an assemblage to
have arrived at harmonious conclu-
sions or, whether in their opinion,
it was premature to enter at this time
upon the consideration of an emer-
gency wholly dependent upon the fu-
ture decision of Congress, either to
refund the called bonds as suggested
by the administration through Secre-
tary Window, or provide for their
speedy liquidation, the course pur-
sued by the convention was no doubt
the result of the bankers usual sa-
gacity. ; The country is not yet pre-
pared for radical alteration of any of
the relations which the constituents
ofits present circulation sustain to one
another. Thus far coio, coin certifi-
Gates, greenbacks and national bank
notes have made up an unexception.
ably good currency, and almost every
body remembers how business was
affected by demonetization of silver,
and by efforts on one hand to strip
greenbacks of their legal tender
character and redeem and cancel
them and remit paper money to the
banks, and on the other to retire the
national bank notes and replace them
with fiat, and shrinks from reopening
questions supposed to have been sat-
isfactorily solved for at least q gener-
alton.
Nevertheless, Mr.. Geo. L. Coe, of
New York, read paper advocating
the proprlety Of permitting banks to
issue notes upon terms not very dis
similar to those formerly granted in
this country, which is said to have
been widely approved Of by those that
listened to it. The plea made by
Mr.. Coe was based upon expected
rapid reduction of public indebted
ness and the near approach of that
tperiod when government shall be
relieved of the necessity of deriving
further help from banks in negotiat-
ing, maintaining and liquidating its
issues. When that point is reached,
Mr.. Coe argued, banks ought to be
compelled to furnish no other securi-
ty for the payment of their notes than
an obligation to redeem them at a
general agency, accompanied with
the liability of shareholders to twice
the amount of their Investments, q
limitation of their issues apportioned
to their capital and by official inspec-
,ions and reports verified by oath.
In the course of his paper Mr.. Coe
remarked that that bank will be
soundest, and its power most effec-
tive and useful, whose discounts and
dealings shall be confined to notes
and bills connected with business
transactions, which assertion may be
received as automatic and yet furnish
no insight as to how restriction of
banks to commercial paper can i'm
part such security to holders Of their
issues in periods Of either general or
local collapse, as experience has
demonstrated to be indispensable.
The fact should never be lost sight of
that treasury notes were re-
sorted to when first introduced as an
easy and ready means for dispensing
with bank assistance and for avoiding
the risk Of receiving and holding
bank paper at time when it was
generally understood that discounts
we're confined to business liabilities
and bank issues we're largely secured
at the West by state, county, city
and other corporate bonds. The
greenback improved the treasury
. note and converted it into available
and reliable currency for both mill
tary and commercial purposes. The
national bank system was originated
not 80 much for adding to the vol
ume of the currency as to assist in
negotiating, reducing and steadying
governmental issues. The banks
absorbed large part of the publ,
debt and facilitated the disposition of
great deal more of it, but did little
previous to actual resumption to-
il wards keeping greenbacks at par. On
the contrary, their notes payable In
legal tenders vlbrated with every de-
probation and advance of govern
ment paper. Since resumption,
however, the treasury has been re-
lieved through their instrumentality
Of the necessity of keeping a coin
basis for more than one half of the
; currency, and, it must be admitted,
that if the dealings of banks were
confined exclusively to business pa.
per it would be such a means ol
adapting the volume of the currency
to the wants of trade as cannot he
0 reached by government issues reeu.
lated in their amounts by law and
therefore capable of being increased
. or diminished at will. Moreover.
paper can be more cheaply and safely
transferred than coin when large sums
!, Eare needed, and as it is certain thai
as good . currency at least will be
demanded hereafter, as that nov fur.