New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-04-20
NETWORK DAILY TRIBUNE MONDAY,

five per cent specie and seyentyhve per cent United States
bonds ard pass over 20 te Treasury circulating
notes 10 n CORES polGlng anorat.
t. This currency be the discussing money for Coy.
eminent money instead q cold
s. Tho Commissioner then to execute additional
amount circulating no.cs sufficient be
prpard give to the public such notes n exchange Tor
silver and gpi.
O. To excmpIify The Commissioners would issue four
millions Of be discussed by the Secretary OF the
Treaury. and receive from him for their redemption.
million Of specie ard three million Of United states stocks,
giving to the public for SPECIE dollar for dollar
only.
T. In addition TO the ordinary circulating notes the Com
misones to have power By advice and consent Of the
Precedent TO issue In exchange for specie notes bearing
interest and payable only at the expiration Of thirty
days notice from the holder.
6 Should specie accumulate that the proportion
would he more than NV nve per cent oil outstanding
notes then the Government may furnish stock or bonds
only In exchange for circulating notes. so that the per-
ccntaCe Of specie b circulation shall be less than twenty
I've cent but should the specie diminish the pefi OF
prompt snece resumption then the Secretary Of the Treas
ury TO put portion o, the stock held by the Commissioners
on the market to reDlenIsh the specie reserve.
8. II Is my opinion that during the war; and while
the Government disbursements enormous and while
Individual and bank credits impaired this measure
VIII give the Government from so 900 to S7OoOOOO
and save forcing upon the market an equal amount Of
loans; but should the volume of this currency be
taned at s25oooon0 only tho relief will be essential and
the saving in Interest very considerable.
10. And. further I believe the measure Will be Of
great benefit to the people and to the army nasmuch as
1t VIII furnish paper currency which Will be free from
discount free from failures convenient for remittances
by mall and much desirable to carry when travelling
or marching than god. Besides, every well wishcr Of
our countrys will feel that the holding Of taeso
notes II for only day is contributing mite in time Of
need
The suggestions of Mr.. Thompson attracted wide
attention at the time, and were favor2by considered
action then taken upon them In order rightly
70 understand the force and foresight OF these suGge
tons, the following data should be remembered;
On July 4, 1901 Congress convened in extra session
and the President issued call for 10000 men and
July IT, the act for issuing the first green
backs then called demand notes and the first 80 Treas
ury notes. passed August Congress authorized de-
mand notes to be issued to the amount Of @jO00oooo In
lieu Of $4,000 600 issued under the act of July IL jan
uary 2, 1892 banks and the Government su.panded
rece payments February 12 1862 Congress authorized
the Of $40 coo 600 demand notes making In
all $50 900 OOO February 25 1852, Congress authorized
$3.50 coo greenbacs and proclaimed
all legal tender This act also provided or
deposits suTrcasuries for not less than thirty days at
per cent interest," thus adopting by piecemea ana when
be efficient the whole Of Mr. ThopscAs scheme
OF June Il, 1901.
In 1868 the same suggestions formed the ground
work for the National Bank sy STEM In HIS efforts 10
SECURE the edopton of these measures Mr. Thompson
encountered the most vrulcnt opposition rom az the
old banks and bank officers Secretary CEase VINO wes
his warm personal friend, and who often sought ms
advice III the dark hours of the cOuntrys troubles
coincded In the views Of the Wall Street nanccr and
no too came In for o share Of the criticism and con
demnatcn circular letter issued to the GihcGrS
House Association September 30, 1888 bearing on THIS
scheme, contained the following passage:
If the theory OF the Sos rery Of the Iroasury be sue
cessul we shall have thousand banks spread over the
whole continent Initiated and managed, In the majority Of
cases. by inexperienced men, to say nothing OF
unprincipled adyenturers who will flood the country
with currency essentially Observation-Disclosures from when
will radate fearful expansion in the Shape OF credits Is
sued deposits, themselves the birth OF imitation anG
protean.lle from which elements still further mutations
with frantic speculation and elevation OF
prices political CONFUSION or the mere hint 10
return Of specie payments prchng the bubble the sys
tenn will conpe spreading dcsolston and ruin broadeo5
the land producing such scene OF financial calamity
shall all previous convlsions compare with
it a. chiids rattle to a whirlwlnd.
In the face Of such gloomy foreb0dings and Of thp
united efforts OF the banks, alr. Thompson, In the
latter part Of 1853 established tho First National Bank
q this e @2 y T GI G G 'G o1sSe 81 his
own family. Concerning this bank he wrote:
Ny First National Bank the first bank started
under that system this city, and my application for
charter was the IN the country. had uphill work
at the start old state bon refusing to let the new
institution the Clearing House. But they were soon
glad and his is how 1t occurred Mr. Chase had given
our bank plenty bonds to sell. IL was the tenortles
that we then Consequently the other banks were
fen in debt to US, and had to settle with currency
instead Of through the Clearing House. This came hard
a. some OF tho weaker banks Time and again they had
% ,cnovd ge their inability pay currency and asked
.yby doa't you settle thu oagh the Ciearing House p
we rcpled 1--WE cannot. You've baekbaled Us ct tho
Clearing House" The drafts coming back TO me un-
uald would 20 to one these banks myself and say
az you have ho currency. lot see what checks en-
other banks you have taken to-day. will take 1t Gus
II them" So 1 picked checks TO the amount on
olc OF the strong and lad the currency collected
directly from them. After this had gone on while tho
ufosd,nt Of one OF the large banks TO ME complain
ina Of tie drain on his currency. explained the stua-
ton and he said "LooS hero you Just put in another
applcaton for admission tp the Clearing House and VIII
see that you get In" 1 did so and was let in now
unanimously.
In 1915 1Ir. Thompson severed his connection win
the Fir, NatlOnal Bank, leaving his Interest there "
his SON Frederick +. Thompson. VITA his otlcf Soi'
samuel G.. Thompson, he Immediately Organized the
Chase National Eank, OF which Henry White cannon
Is now president, Mr.. Thompson having been us
vice president at the time OF his death. In MS De
clning years he gave much attention TO another
economy in the use OF gold and silver as circulating
mediums He believed that neither metal was %
,rable for currency, that the mint should fix their
coin value In bullion, and that the Treasury should
store IL and issue Treasury certificates in denOmlna
lions suitable for circulation. This, he said. would
give the people a metallic currency without the In
convenience Of holding and carrying COIN.
Though member OF the Stock Exchange, Mr.
Thompson seldom went on the floor.
JAMES J. MARTIN.
James j. Martin, junior assistant corporation coun-
are III and