New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-17
TO REMEDY MONEY PANlCS.
An ELASTIC ADJUSTMENT OF CURRENCY.
PLAN FOR GIVING THE BANKERS MORE RE-
sPoNSIBILITY THAN THEY now HAVE

PLAN For GIVING THE BANKERS MORE RE-
spoysIBILtTY THAN THEY now HAVE
TO the Editor Of The Trl bn"~
Sir: ALLOW M odd reader Of your columns, one VINO
recognizes The Trines persistent advocacy OF souhs
currency 10 call attention points relating there
10 which might aid i'm efcctng rcllef 10 present s''l
ccncy and b. perhaps. the means OF obva'lng sniiar
money praSSurc in the future. Mr.. Window In his repok
mentions the lack OF elasticity in our present system
defect the National banks able. TO certain ex
tent to overcome by their Issue OF crcuiauon' Ouo
which at the present cost Of Government Dohd' 'ey
are unable to maintain prohtably. ms question OK
currency is ono Of large importance 70 every business
man, farmer and citizen and the present system IS
far from being universally satisfactory. Although our
currency per capita has not fallen or yet when con-
parod with the growth Of business the percentage Is
low and the ratio has been diminishing
In O. new country. whore the business is small. ~
is evident that much smaller percentage OF money
per capita would be needed than IN one q acuVe
business We have in the United states about S22
Der head. France al and it is said that
81 per cent Of or transactions arc setoed nv
check, and drafts rather than IN cash. but
il j., not my nte80n TO discuss 'le needs Of ncreasen
currency so much A, to 500 II there T. not way IN
meet thi, demand. An example Of this demand ior
Increased currency to be found I'm the pan, no" pun
ra.-! by the Farmers Alliance for Government ware
houses from which advances could be obtained on
farm products and Government mortgages on farms.
Rccosnzing the situation # seem, a. though II were
the plain duty Of TIE Republican party T. meet tls
issue not by opposing the increase Of currency DIV
bv providing methods that viii provide rs with sound
and elastic currency. THIS, with proper legislation
can be brought about b. the aid e the National banks
In a WAY that will promote All business interests ana
will not incur the charge of paterEa,n.
Under our present system our only relief seems 10
he tic purchase OF bond, whenever IN the lndgmeh'
Of the secretary II the Treasury. the pressure mas De-
come % great a. 10 require Il. Nv plan would be 70
relieve the secretary Of this responsibility and the co-
trt Of the risk of hi, possible m'!udsment a 10 the
propcr time 10 turn on the Treasury stream instead
of making Congress and the secretary OF the treasury
Judges Of our needs would leave It 70 every banker
~ srpply his customers what they could paw for TO ~
every manufacturing village through the country ann
You will find that the bankers there know exactly "nA'
money IL REQUIRED in their community for pav rolls for
farm products In word. for all business needs' a"h
they are careful TO that loans are well paced
little OF the same applied to money tha'
Is apped 20 other matters would probably ehect mos
Satisfactory results. We look 10 the butchers for
sufficient supply Of meat 70 the carmen for surcieht
supply OF trucks We may license the trucKmsh' "
(, true 50 a. to provide against fraud on MS part
bu, the Government does not attempt To restrict u'
number Of carts that are made Why not apply ths
SAME rule to the bankers should 10 be uohe' NY
belief is that II will be found to work equally we'll
uut the question arises low this may be effected
suppose that the National banks were alo"ed 10
deposit other than Government bonds as security '
circulation the result would soon be felt IN suihciehs
supply Of currency. All we need for SAFETY IS ample
security for circulation Those of us who handled
money before the war can remember reading on orr
state bank bills Secured By pledge OF public stocks
While We would back 10 the old system OF issue
by state banks get would adopt the use OF 5000
state and city securities.
without entering fully into the details OF Sch q
,.,b, 10 hat
present National bank system, but allow National
banks deposit security good state or nunicpai
,ubi name a list Of securities a. GOD - all lnients
and purp,s,e~ A. Government bonds. Take. Tor eA'
| annie the bonds on which the millions were Dor
r',,t,d that built our adueduct-vhy are they not
good basis OF circulation lie same may ne dshel
Of similar secTrtes state or rn'lp@i 1 1Ge
| onIy sufficient To meet expenses and allow no
I,nhcr 10 increase retire his circulation a. ITO
Id ~ GOOD service in tines and for many years
afcrwa, and Their history has ), been one ~ !, " re
anplcd safety t. dp'sitQs ana II now pace IA POI,
Ton probably 10 l--uc circulation they "ouId gui NV
elIeve Of money irnsfncy W'2t r,o,bos S W.
lauccr0n> money legislation Is, I'M, nie,n I Wo
-l,uf Pat the expansion or CONTRACTION of ue cur.
nry ,o '9r me a'G most Jar sihed business men wGS
0ud cal neither for more nor less currency than M
md tie same care as now HAl,ls Woui ~ ,hnrh ~
making loan. lie los, If any, Would iail on Us
! tanks Beside IL would represent the interest "
cry r,tlr,ant city and throughout the country
! .uth a change Il our banking laws would seem %
make oar currency elastic enough y meet az enleE
-cncss and still strong enough - AVOID an ue uiu,
! -crs Of an irrsdeomable paper currency To my minn
Tho dissection o. LEGISLATION should BE- toward ,npniy
inc n, work ~ our financial Officers. ana m'khS ue
ncon'c through their banks provide for then selves ~
,he hanks lave lately done 10y clearing House GER
inc,tr. "a circulation in fact. though limited 10 te
,nnh. The Office OF the secretary Of tie Ireasuf n
n,s department Of hi, work. would be simply 20 -
t Earr n, called for on proper security, The same
rl,-s of bill, rs those now issued by the Ha'lpnal
lauts The above suggestions are submitted TOT yvu..
,i.,-,fion aud thai Of your readers. As methOa
- nroyidlng A good and abundant currency wl'aouo.
,,,,yiuc ~, I'm n system ~ ""lcat banduS 9r 1"'
money. thLiN' d
I \.r.Ynr, Dec TO- 1890