, 1881-12-22
About ltl1.LonMx, LceaI.re1luer, Gold
And 15xInnhIOut.


PAltK AvEHUE, CHICAGO, Dce+ D,-Wo notic0
th!s remark III very nh!o Eustorn financial cir
ruar: "Every dollar Of gold deposited In bunk
provides baukIny facilities for four times tho
amount"
II tho banks had notes or money that was not
lcXNl-tontler thBn this would be tho rasu. They
must keep OIL huudN AZ II Icgni rUserve Is per cunt
OF thotr deposits and circulation III le.ul. tontitr
money, gold and groonbacks, Givo thu,n $l,00o
in'legutunder, that Will Increase tiolr deposits
$l,030, Of which f:60 1nust h0 retained aa re-
serve for such tnctnaso Of deposits. Nav, II
they had InOnuy thAt WINS not Hlrcaily In
usn It's rcscryo they could lonn nut Or discount
<3,75o OH account Ut said Il ,o0o Icgal.teudor de-
lnsit. Hut they do nor hnvo It.
4. Tho amount uf leg1ll.tehicr nOtcs and gold n
tho oountry IL more linn, twicu as inrgp NJ tho
amount Of Nati0nal- -bnuk-notca not lcRul- -tonlpr,
Every bunk first llays nut not,-ie9nt.tciulur
notes bef0re It uaea gold Or Krcenbuuks. Tho
consequent result ~. tho hanks hold only legal
!ll nut IN circulation uinoIE the rcnpIo. 10 tho
uop,sit 9t $l,0 E9la E aetuAfIy, only onnbles the
sion % siie % IF tho uucstlon. ''' '~'"A'
Now aes h.,w II viii work uIl the contraction
side. Withdraw l,UO gold Or teR1ll.tcndur NOTES
irotn r @ y bauk-will this require IL contraction Of
II tho bunk draws In $1,000 from Its louus, and
E9ta Il IN legal.tctscr lionuy, lts tl.0D III re-
IT, % tioposiis @ ccsoasea M si s Es"n III Il t rscuycd r
II III i-EgAl- tender nuteH, those 1t WulIIlG suO
work tut III III current business, And fiattu It tho
e11llu ns though Il hail beru received III legal
tnlor nj tIrdt. Thu koy ut tho argument Ii l,a,
Tic AvcrIKc hhtIk reBCrvu IN already lHrser thl
tho rGseryG required IL ttolt n tho tltli,-cKAl.
inurcass 1t rosersv tainot fioat or oIrontHio lily
niOFu Kal. teor money, beeausc ilterc u no
| iatrt: and llnks cnn only Increase their luaDs
| when their dep,stl5 lhErctIac, An1 then uDly
thstMs tot!rllK oe tho Aluulnti and whom thntr
slcfYls!8 oeteAsU Il requires HnIy cont TAGttO1 VI
thor l0as Of thT0u Ut such Locrense. for
! - ror eea1t OF EesGsy9 !s setHYeA. :.
IT th1re WEru MY trouble 10 koGp tho Waolo
| nn4-leBn- Tender Mu,ey III circulation, filou ta1H
t4onry tulKht 1Ail iD tho extctk OF 4ngr tlUl0lo,
| l!ut 1t does not rxist. Uanka eau only Loan out
| 10 per ttnt Ut tGIH1stts fcuaIvOd. -tE60y usnlUt
print sanhoy i!hu thu OLD btut0 banks Lia; trey
crot.o IF lcserv0 a0Oys tho iegnl limit tlHca not
nayl'lo banking fucilltics for four utnos tho
| An0tnt ...
| The Impression ~ prevalent Ana sotnotinng
| maintained by yDoA hnahrim3 writer's th9t Inla
dots increaso b0lkfn9 tAclttiea fnurf0ld. hut
| II IL GrrpIc0As 1t originated with tho stAto
hunks Vi Issue, which could print nla pay out
! their UWn ilutes to my amount, providing tloy
| Kept on band u reserve OF R1l!l equal tu 0n9-
! thirl VI their notux tu clrtul1tloHt ~ Oasls
| to eilaDla them to rudeom SHeh ioiea on a."
| sulnt.
.TAo National currency u alrondy all out Ia
circulation. Thoro no Inv to uuthOrizo hanks Of
| Government to Issue Mnre pAper inpneyt sG
| Euld cnnut sluudrupfo bAnkinx lAelltttes, Rit!
banks Ganilot loan moro to tho public than thuy
receive trIn tho public 1t II tu ctlrruet me ef'
nlitiel, D,u.t.