The daily gazette., 1882-02-15
SECOND EDITION
Important Financial Proposition
From the Chicago Inter-ocean.

Important FINANCIAL proposition
From the Chicago Inter-ocean.
A number Of important bills of a flnan
cIal character are being perfected in the
Senate and House, and with really
more prospect Of successful considera-
ton than attaches to most propositions
to tinker with the finances OF the coun-
try.
In the Senate We have The proposition
to provide for the issue OF gold certIR-
Gates as silver certificates are now issued
and thus TO utilize all the gold, not only
In the Treasury, but in the country as
well, except the amount necessary Ms a
reserve TO maintain the specie-paying
character Of the green-backs. At pre-.
sent the gold OF the country, except the
small amount in circulation, is practi-
cally tied up, and does not figure as cur
rency. There is as much dlstaste to
the actual use of gold in ordinary trans
actions as to the silver dollar-lnore, In
fact, hundred of the latter being used
where one gold piece of any denomins-
tion 10 employed. So great is this OBJ
lection to the handling OF gold coin that
the New York Clearing House was for
ced to deposit $30,000,000 of specie in
BANK vaults and issue certificates which
could pass in lieu of the coin. The SEN
ate committees seem to think (their
views undoubtedly being expressed cor
rectly by Senator Allison) that the boar
ded gold OF the country should be util-
lied as circulation, and this can only be
done by q system Of certificates some
thing like that now adopted in relation
to silver. Senator Allison calls atten-
tion to be probable necessity as we'll as
policy of this movement, basing his
opinion on the indications that the ma
tIonal bank currency will hardly in
crease, and is likely decrease within 9
short period. He thinks the banks will
hardly expand their circulation, when
little inducement is given them TO do so,
By investing IN Government bonds at
low rate and high premium, but that
they will more likely be disposed to con
tract. Especially must they do the latter
If the charters are not renewed, or are
renewed with amendments that will
necessarily detract from the desirabIlity
Of such investments. In this case the
issue Of the banks must be succeeded by
some other kind of money, and it is
| difficult to see what other kind is Sc
completely unobjectienable as certifi-
Gates based upon gold and silver actually
deposited in the National Treasury.
Ifgold and silver certificates come
into use as currency alongside the
| greenbacks, our circulating medium
will have close resemblance to thai
Of England. The Bank of England
which is to the English public wha
the Treasury is to our own people
issues $14, 600, 600 on the credit of th'
| Government, and thereafter issues al
the notes it pleases upon deposits 0
cola dollar for dollar in its vaults. |
will therefore be seen that our system
of $3.50, 000, 900 of legsl tenders issueC
on the credit of the Government, anC
gold and silver certificates issued upoI
actual deposits Of coin, would closely
resemble the English system, which
whatever its other objections may be
is certainly considered safe.
The proposition looking TO the above
plan is being considered by the Senate
In the House others of an important
nature are also receiving attention,
and it is SAID are meeting with favor
One of these is to recharter the national
banks with some additional restrIc.
tions, one of which is that at the expi.
ration of the charter the profit from
the loss and mutilation of currency
shall accrue to the Government. Al
first thought this may seem small
matter, but the experience of the last
twenty years shows that it is of greaI
importance. 1t is said that the profit
from the loss OF currency issued by
the Government (the report says from
fractional currency alone, but this car
hardly be possible) exceeds 5000,
900. This being true, the gain to the
Government from the clause mentioned
may be imagined. Heretofore it has
been question as to who reaped the
profit of these losses, there being
nothing in the national bank act indi-
eating the intention of the law. We
believe 1t was concluded, however, thai
the banks should have the benefit, anC
this reversal of the rule will not be al
encouragement to the banks to MAKE
great struggles for a renewal of theil
charters.