National Republican., 1888-01-18
il WARD b. Fox, Secretary.
y Plan to Expand the Currency aud
Retire National Bank Notes.

n IINu 10 LhphnN inc SurTtHCy auu
Retire National Bank Notes.
The actual currency OF the country, as
stated by the Secretary Of the Treasury, con-
sIsts OF 1881 100000 in legal-tender notes.
$lG4, 100000 in national bank notes (for
which last the treasury holds as security
Slg0,OO0,O00 in United States bonds, about
half this sum being in per cents aud the
other in 4 per cents $lGO. 600 600 in sill
ver certificates, SlOO,OOO,OOO in gold cer-
tihcates, s393,OOOOOO in gold coin,
$1l?,OOO,OOO In silver, and 800, 100000
in national.bank notes that the banks
have withdrawn from their circulation
and paid for making them virtually
illegal tenders" because they will be re-
deemed at any time on presentation at the
United States treasury. This makes grand
total OF $3.50 ,OOO, GOO of paper currency, from
which must be deducted Sl00,000,0O0 held
in the treasury to redeem aud cancel that
amount Of outstanding bank no:es a9d
$40, COO0CO Of legal tender notes held by
the national banks under the law as a re-
serve, leaving the available paper currency
$;l5COO,OOO. OF this last n4.nel SUN SGJ
uC0 Geo Is in the treasury.
THERE'S also S5sl 900, 600 In god and s!l;er
coin 0Ld bullion in the tire tsury ot the
United states out CT Z grand total OF coin
and bullion in the coul,rY Of Sl,O)),GjJ,.
eco.
TLls would show "a apparent circulation
e 500 eco Geo in paper and :4l9 o0),ooJ To
gold, total Of $l.O,i 900 OO0. BI.irJm : qis
,4ruu. there must he dcduc.ed whatever Of
cur currency is abroad, the gold and sliv,r
iaiion Included 10 the 81 900 600 OOOspeclc,
tie amount of paper money destroyed hy
Ire ard noOd or wear or tear, AMI Lhtt
hllcd in the ground which will reduce the
actual amount in active circulation to, say,
o. NJ $l2 per capita.
That the amount Of currency In circua.
u % Is not sufficient to transact the blsl.
I,ss Of the country is apparent to every
one, aud the amount per capita becomes
annually smaller, even without any with.
drawais, from the fact that the population
Increases at the rate Of six per cent. aud, ~
c,uTse, the business needs fully as mach.
Wise craftsmanship demands a system
a. governmental finance that will remedy
tho present e vii, provide against the an
iuai recurring contraction which follows
the increase Of population, aud at the same
tine take it out OF the power OF any com.
hinaton Of men, or circumstances, tocoa-
tract the currency below the safety point.
The NATIONAL REpupIIcAN has som,
suggestions to make upon that subject.
The first Is that the Secretary Of the
Treasury he authorized to Issue from time
TO time treasury notes to an amount equal
10 - per capita, Estimating the popula.
tiuu 1t GO,OOOOOO, this would max.
an itsue now Of $500 O0O,OO Taesa
notes Gouid be receivable for public dues
and rcdetmalle on demand IN coin W leg Il
tender ro,es at the option Of the S.crc.lr,.
A sufficient amouat Of thesc notes should
bnu,cG 20 rctlrs th9 ;lt5 OJ)plu2rs rel
rational bank notes, and 10 pty the Ter
euce between The present yalua VI ne
"houGs on deposit to secure circulation" "aai
ucamorrt OF bank uptrs i,susi "a tn'w
houds, Assuming, a, IA The fact, tlat tlu
bonds on deposit are about cIuaIy
lttwc,n the Is and =, the p emIlu w,p'l
amount to ;ao0OOOOD, aud s?5,0JD,o,0 (.
the excess of the par value Of tue bonds
over tie bank notes Issued,
Wearc willing to accept, so far as these
bonds are concerned, anu pay the prtul-
ums heretofore liked by the secretary ~?
the purpose Of Terminating the arrange.
mept by which the national banks are
made banks Of issue.
At least S55,OO0,0OO would be added to
the currency by this act, and :iO,OO0,OOO
in legal tenders held by the banks under
the law as reserve to protect their notes
would also be added to the currency, for
the banks would be liberated from holding
that amount
In addition to the law making eonpul-
sory the purchase Of $!iOOOOOl In silver
each year, the Secretary should be directed
10 purchase with silver certificates at the