The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-05-25
SILVER CURRENCY.
An Air of Uncertainty Surrounds the
Whole Matter.

NEW YORK, May 24.-Bradstreet's today
says:
While a general belief prevails that sill
yer currency legislation of some kind will
be passed at the present session of con-
gress, the divergence of views expressed in
that body on the subject, the variety of
! measures before it, and the slow progress
which thus far has been made in the dis
| cussiOn by the senate, surrounds the whole
matter with uncertainty Inter
| views by a representative of Brad
| streets with leading New York
bank officials, of which selection of
the most interesting follows, developed
| this fact. At the same time it can be said,
taking the sentiment of the New York
| banking interests as indicative OF those
held in similar quarters throughout the
| country, that some increase OF the cur
rency through the issue of silver notes is
regarded as almost inevitable, Coupled
| with this it is also noticeable that alarmiSt
| views are not entertained, even though IN
| some instances there are doubts as to the
wisdom of the step or the ultimate effect
| witch it may produce on the general fnan-
! cial condition of the country.
Hon Charles S. Fairchild, ex-secretary
Of the United States treasury, and presi-
dent of the New York Security and Trust
/ company, said:
In my report as secretary of the treas
| Ury for 1887 ! outlined to congress method
CuTTCuCH
| ton which, IN substance, was to limit the
supply of silver currency furnished by the
! government to the ascertained demand for
| it by the people. This would have sup
! piled the demand for additional silver cur
renCy without affecting the market posi-
tiOn of silver considered as bullion, but
without involving the danger of deprecia-
ton in the silver currency outstanding. |
still consider this the best method of deal
ing with the subject But at the moment
it is difficult to predict either what viii
be done, or what form it will take. The
| ease with which the accumulation Of S94,
| OO0000 of silver i'll the treasury in 1886 dis
appeared serves as fOrcible argument IN
! favor of future action in the same line. The
national bank circulation was being rap
! idly reduced, and with this came a great
increase in business, particularly in pOr
tiOnS of the country where banking facil-
ties were wanting and where large
amounts of additional actual currency
were thus required. This created a Vacu-
um in the currency which has been sue
cessfully supplied by silver certificates,
and on this success the sentiment in favor
Of silver currency is largely based. But
connected with the pending silver
| legislation is another proposition of
no little importance. 1t is proposed
to turn the fund held for the
redemption OF national bank notes into
the treasury to be used for the general pur-
pOrses of the government. That money IS
held expressly for the redemption of ma
tional bank notes. The idea is that the
fund shall go to the treasury and be ap-
piled for whatever payments the govern
ment may have to make, and thus come
into immediate circulation. THAT the
country viii have an expansion of cur
rency co the amount of this fund, which
is, say $50, 100000. We shall have both the
fund now on deposit and the national
bank notes. But the process neces-
sarily involves a contraction to the
amount of the notes the redemption
of which were thus secured. As the
national bank notes are presented for re
demptiOn they would be cancelled and re
tired, and experiences in dealing with re-
tired issues Of government notes show that
all but an infinitiSmal portion of them
will be so turned in. In other words there
would be contraction, followed by a cur
rency contraction OF the same amount.
The proposition involves a breaking of
trust on the part of the United States gov
ernment. Moreover, the same reasoning
which would Justify the use of the money
deposited to redeem the national bank
notes Will justify the use of the gold and
silver held to redeem the gold and silver
certificates"
Hon. H. w. Cannon, president of the
Chase National bank, New York, and eX-
comptroller of the currency, said: If
the bill which was substantially agreed
on in caucus becomes a law, / do not think
any bad effects will follow. The issue of
silver notes under the bill will be put out
for actual deposits of silver bullion at its
value expressed gold Therefore the circu-
lation issued will be substantially ON
gold basis, and if the secretary of the treas
ury be permitted to sell the bullion, if in
his judgment it be necessary to redeem
any part of the notes and to prevent large
81 nf /
increase of the currency can have any per-
niciOuS effect, so far as forcing gold out OF
the country Is concerned. There Is, of
course, great differences of opinion as to
whether we need additional currency to
conduct the business of the country. The
proposed bill would increase the currency
about So, 900 per annum. Our national
bank note circulation is being rapidly re-
tired and Will soon reach the minimum
under the law. 1t is not unlikely that CON
gress will permit national banks to organ
iZe with q smaller sum of bonds, and, if
this is done, the bank note circulation will
further decrease. 1t then seems that
reasonable increase of the currency by the
issue of silvernotes would not he unseryice-
able, and | think that we should very likely
need an additional amount of notes to car
ry on the business of the country. The
country is 50 large that there is now
great waste when currency is shipped to
larger amount of money to Go our business
comfortably, and, as the country is grow
ing rapidly, | can not see any danger of a
somewhat increased circulation. There is,
of course, a great difference of opinion as
to the effect of the proposed silver legisla-
ton, but in justice to many people who be-
heye that we have not enough currency, |
think that some such legislation should be
adopted"
Mr.. George G. Williams. president of the
Chemical National bank, said: 1T seems |
almost useless to raise voice against the
flood which is threatened. There certain |
ly is danger in precipitating an immense
amount of silver into our circulation. 1t
has been a fOregOne conclusion that con-
greSS was certain to make some radical leg |
islatiOn, and hence conservative men have !
raised no notes of warning 1t should be |
remembered. however. that what is not !
right in principle can never be made 50 by |
the fiat of law. Free coinage would be !
species of legislation on par with the re- |
pEdiation OF Mississippi few years ago, and |
seems TO me abhOrrenU to every sentiment i
of right The bill proposed by Mr.. Win /
dom, making the certificate based on silver |
Tedeemable in bullion at its market value, /
Is of a character entirely different and. !
with safeguards or limitations as to the |
amount to be issued in any one month. |
could with safety be made TO take the |
ploce of the present coinage OF standard /
dollars
Logan c. Murray, president of the !
United States National bank. New York, /
and eX-presideut of the American Bankers /
association. said: Eighteen months ago. /
ar Cincinnati, in addressing the Bankers /
association. | referred 10 the fact that /
botn political parties were then. as
they are now committed 10 silver