The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-12-19
The Financial Scheme.

The republican senators have agreed upor
a scheme intended to increase the volume oil
/ the currency, and, hence, e. prevent q
scarcity Of money at the time of the year
when the crops arc being moved. 1t car
hardly be called financial scheme of the
Republican party yet, because it is not Ger
tain that in its present shape it will be
adopted. 1t can besafely stated that it will
meet with great deal OF opposition. and
there is not much probability that it will be
passed without important notifications.
Its features are as follows:
The purchase Of $4,000, 600 worth OF sil-
yer bullion within year In addition to that
authorized to be purchased by the present
law, the same to be paid for with legal ten
der treasury notes.
The extension of the circulation of the
national banks to the full amount of the
face value of their bond deposits.
The replacement of the deficiency in the
national bank circulation below $3.50, 0OO,-
600 by treasury notes based on silver bullion
purchases.
Free silver coinage when silver is main
tanned at par for one year.
charge on conversion of gold coin into
bars and tbs recoinage OF subsidiary silver
coins.
The main feature of the scheme is that
relating to the purchase of silver bullion.
1t is claimed that there is large surplus of
this bullion now on the market, and that it
keeps the price of silver bullion down.
There are rumors that the most of this sur
plus Is held oy a syndicate. which includes
a number of members of congress There
may not, of course, be any foundation
for these rumors, but in view of the fact
that resolution was introduced into the
House day or two ago, asking for a COM
mlttee to investigate the charge that sena-
tors and representatives, at the last session,
speculated on the knowledge they possessed
that the silver bill would pass, it might be
well for an inquiry to be made as to whether
any republican senators are now holding
silver for a rise. Congress might as we'll
pass free silver coinage bill at once as to
legislate so as to keep all surplus silver bull
ion out Of the market.
There can be no objection to increasing
the volume of the national bank currency
TO an amount equal to the full value of the
bonds deposited TO secure the currency, be-
cause the bonds now command very large
premium, and there is no probability that
they will ever fall below par.
And there will not be much, if any, op-
position TO supplying the deficiency in the
national bank circulation below $3.50, 0OO,-
600 with treasury notes based upon silver.
In view of the utterances in his message
It's difficult TO see how the President can
accept the sl2,000,o0O increase in the pur-
chase Of silver. 1t virtually amounts to free
silver coinage. The opponents of free coinage
will so regard it, and will present a very de-
termined opposition to it.
1t is question whether the conditions
are such as to demand any Immediate tinan-
cial legislation. 1t Is asserted that there is
plenty Of money in the country, and that it
will be possible to obtain it at cheap rates
OF interest as soon as confidence in the
stability of business Is restored. Money is
quite plentiful now in New York, and is
comparatively cheap. There should be the
greatest care and elaboration, therefore. in
legislsting in financial matters. step in
the wrong direction might bring about the
very thing sought to be avertsd.