Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-12-14
M,. Ro,.,, on currency schemes.
E's MY 81 "" ,"f
D The Editor IF the Dispatch

To the Editor IF the Dispatch:
Every tinker is at work on the curren.
CIV now, and why shall not T? 30 have
ut it. Many sound thinkers believe
national debt to be q national curse
many other persons think 1t national
blessing. shall not declare on which
side of this controversy stand, but this
fact We must ell admit, that our paper
currency is based upon our national
debt and 1t behooyes all to make tho
best of it while this fact remains.
BY common consent the stringeDcy IN
money to-day proceeds from two facts
First, the boarding OF money 10y the
Government second, the great sur
render Of their notes that the national
banks have made. All admit also that
the banks have surrendered their notes
because it does not pay them TO keep
their money locked up IN United States
bonds.
The press reports Senator Sherman TO
have offered bill for relieving the
stringency. As thus reported the pm
cipal points are these:
The banks have brought their notes
down to $50. 100000. II they bring
them any lower Mr.. Sherman would
have the Government to issue enough
greenbacks to make the paper currency
wha. il would have been If this addi-
tional surrender had not taken place. lie
will thus keep ont always $3.50, OO0,VoV
OF greenbacks and $3.50, OOO. 900 OF ma
tional bank notes, or its equivalent IN
more greenbacks when there are fewer
bank notes.
He would also authorize the issue OF
slOO. 900. 600 of United States bonds
bearing per cent interest, redeema0le
at the pleasure Of the Government, which
bonds may be presented for payment at
any time. and they shall be paid when
presented, proridedtho Gogcrnmenthas
UloHey IN us vaults With Which TO pay.
His idea is that when there is n pie
thora of currency the banks Will put
their money in the per cent. bonds SO
AS 10 Get interest on it rather than keep
n idle. because, as soon as they want
their money they can surrender their
bonds and receive back their currency.
This will prevent their retiring their
notes.
IL seems 70 me the fatal objection TO
this is that the banker has TO take
chances whether he will get his money
back when he needs it or whether he Will
not. IL the Government happens TO
have money enough on hand 10 pay him
he will get it If it does not, he Will not
get it. The banker will prefer to keep
his money in his vaults against just such
y state OF affairs as the present rather
than take the risk.
And it may also be remarked that this
plan contemplates nothing more than
the present supply OF currency, which 10
notably not enough, as the present state
of affairs proves.
1t is easy to object. What have | to
propose
Pay to oil national banks, those now
in existence or those that may choose &c
organize, a rate Of interest on all United
States bonds now held or 10 be acquired,
that will be deposited with the Govern
meut as basis OF currency, rate OF IN
terest that Will make II ~ the interest o.
the banks to keep their money In OhIte,
States bonds. Do this without rogarc
to tho rate of interest that th'
bond may have borne when th'
bank purchased II. For instance
Government As are worth now, say LIB
1t does not pay bank to keep its none,
/ IN these bonds at that price when they
pay only per cent. Pay them, then
say per cent. on such SO long as the
are deposited as a basis Of currency, an
let them issue currency to thefull amour
Of the bond Let the bank surrender il
currency when it pleases and take bacl
! its bonds, 6ut ,ohon they take them 6dc'
/ hey becOmc JOuTs again.
And to encourage the proceeding 10
/ the First National Bank turn in th,
notes Of the Second or any other nationa
bank and get its bonds back.
With such law in existence the bank
would to-day issue all the currency tina
the public demands, and as soon as tn
construction was over they would turn II
their own or some other banks note
| and take back their bonds and thus 70
store tho currency to its normal state.
WILLIAM l.. RoYALL.