The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1890-11-25
EXPANSION WITHOUT INITIATION.


The most important of the more recent
intelligence from Washington is the as
surance tina Secretary Window is
strongly in favor of expanding the cur
rency. Just how he would do it does
not appear. 1t may be doubted if he has
got that far vet in his own mind. His
conviction goes to the extent of a gen
eral proposition rather than a specific
policy.
1t is thought that he would not object
to letting the national banks issue cur
rency to the face value of their bonds,
but that he will not undertake to pro-
mote it. In that way the volume of the
currency could be increased So. 000,0 600.
That would be something, but not
enough, and. besides, there is a preiu-
dice against the banks which would
probably defeat such bill if
brought to a vote in congress.
Many would see in it a favor to
the banks rather than relief to the peo-
pie. For this prejudice the banks have
themselves to thank. They should not
have contracted their currency. The re-
vived unfriendlinesS to them is largely
due to the contraction of their currency,
which has been going on for long time.
Some relief would be afforded by COM
pelling the national banks to either sur
render their charters and go out of bust
less or issue bills to the maximum in
stead of the minimum of the law. This
ought to have been done as soon as it
was evident that the banks were gener-
ally inclined to reduce the volume of
their circulation. 1t may he rather too
late to do l.. 1t might result ultimately
in the extinction of our banking system.
Under the operation of the liquidation of
the national debt the bonds outstanding
for the banks TO base currency upon.
This is a phrase Of the case worthy of
consideration and which cannot be
ignored.
Now that Secretary Window seems to
be in an inquiring turn of mind, the
Inter Ocean wOnld call his especial at
tention to the plan suggested by this
paper in an editorial of yesterday. Speak
ing of the contraction of the national
banking currency steadily going on, we
observed:
But there can be a substitute pro-
vided. Why not allow an increase of
United States notes to match this de-
crease an offset it: That would be sub
stantial if not technical conformity TO
the general plan of the government to
allow neither contraction nor initiation
The present volume of the greenbacks
Is, in round numbers, S:}46. 900. 600. If
1t had not been for a secretary Of the
treasury who was bent on destroying all
the greenbacks, Hugh McCullOch. the
volume today would have been $500. 000.- !
GOO. That would certainly be little
enough The volume might with safety
be graduated according TO the funds in
the treasury. or the coin, as congress /
might deem most advisable. Some plan !
# that kind would afford elasticity with |
out opening the door to initiation.
First then, let the treasury issue notes |
in lieu of national bank bills as fast as the /
latter are surrendered. Second. let the |
volume o. the greeuOacks. independent |
Of substitution. be increased 10 at least |
the aute-NCCOllOch volume. 500. 000. geo. |
Third, let a fixed ratio maximum and |
nInlmuml of funds or coin in the treas !
lry 10 Uuited States notes outstanding /
be determined upon and adhered to.
1t would be 40 misfortune if the banks 4
should 20 entirely out Of the bill emit /
NJ business men whec a substitute
mall nave been devised ard duly tested. /
Inc great benefits OF the national banking
system are not dependent upon the bills.
-t would be an easy matter 20 eliminate
hem altogether. The great apprehen-
ion has beer that if in any way or on
my ground the volume Of greenbacks
we're increased the floodgates OF inha-
ION would lie opened and could not be
hut again. That would surely be a
treat calamity. But We submit that the
'hanEeS proposed could be affected with
,ut any real danger on that score.