The Washington bee., 1888-05-12

the necessity of some relief of the
national banks.
"What would you suggest, Sen
ator?'I I asked.
50 I have a plan he said,' sor
rather plans, of relief which think
equitable and fair. You will OBJ
serve that the national bank circu.
latlon is being contracted just as
our country is growing. This
should not be, because the system
is an index of the growth of the
country, and adapts itself to its
growth. l am in favor of letting
the banks do business upon the
four and four and a-half per ceut
bonds now outstanding.- But in
order to equalize the burden upon
the banks, because ofithe high rate
of premium at which these bonds
are held, 1 would give them circu-
lation up to the face value of their
bonds. This would increase the
circulation s3O,OOO,OOO. I would
even 60 further. I would issue the
banks circulation up to the market
value of their bonds, and have that
value fixed once each year. AS a
matter of fact and history, the
price of these bonds has always
advanced, and never DEPRECATED. :"
And why is not this plan both
just and safe? The bonds can
never 60 below par. The interview
proceeds:
"Would you favor the issue of a
two per cent perpetual bond?"
".NO, | would not vote for it. l
do not think it would be wise pol
icy to increase the bonded debt of
the country solely for the benefit of
the national banks. am friend
of the national banking system. 70
issue such a bond, however, would
be for the Government to ask the
people to loan it money when it
had more money than it could get
out. The banks themselves, [ do
not think, would favor such a bond.
They would hardly invest their
money at two per cent to acquire
bonds as a aecurity for circulation
when they could loan it at six per
cent. Again, it would not satisfy
the people as a safe deposit of
security for circulation. The banks
need relief, and ought to have it.
If we give them circulation up to
the market value of their bonds,
the existing conditions of trouble
will be, l think, entirely swept
away"
8. What shall be the banking
system when the Government bonds
shall be so reduced in amount by
payment as no longer to furnish
sufficient basis for circulation :?
This is not a question of immediate
concern and yet its answer cannot
be delayed until danger is upon us.
Who so skilful in preparing the
way 60 avert dongers as the great
tinancier who has encountered and
surmounted vastly greater quest
ions and dangers than this?
In all the elements of fgreat fnan-
cial ability and great achievements,
Mr.. Sherman has no superior in
the worlds history. No man in the
presidential office ever won so high
distinction by any civil service as
Mr.. Sherman has done in the Sen
ate and as Secretary of the Treas.
ury. When financial questions
present the great work of the
next administration, can any citi-
zen doubt whether gratitude, duty,
and interest do not require us to
place at the helm the worlds great
est living financier?
If he is nominated for the Pres
idency, every business man Of the
whole country will feel secure. The
dealers in farm products-cattle,
swine, sheep horses, wheat, corn,
cotton and wool-the merchants,
manufacturers, traders and ship.
pers-the whole country will rall y
| to his support as they will to that
of no other man. They will not be
disturbed by visions OF war, by has
ardous experiments, or by injudi.
cious Legislation.