The advocate., 1892-04-13

with great profit to the government, the
present system of national banks can be
continued and their usefulness greatly in
creased. The plan does no injustice TO any
citizen, as it conveys no special privileges
to any class. Il restores to the states rights
connected with bank note circulation arbi-
tParily taken from them land doubtless
without any constitutional right on the part
of the United States) many years ago.
venture to say that no man will question
the security provided for the note holder.
All men can see the large increase of rev.
enue it will pour into the public treasury,
and every banker will appreciate the in
creased profit possible under it to any asso-
citation located where banking facilities are
really needed.
Those who would be content with fat
money, or coinage of inferior quality and
debased value, will see in this bill the op-
portunity, under state laws, of providing
themselves with currency quite local in it's
character. and as large in volume as may
be needed, and with the great merit that it
will have far more actual value than the
present standard dollar. The class of
thinkers referred to above will, on pages
six and eight of the attached pamphlet, dis
cover far greater advantages TO flow from
the passage of this bill than they could
reasonably hope for from any law which
would give to the people who own silver
mines the right to compel everybody else
in the country to take as 100 cents a coin
which would cost the lucky mine owner but
Al cents, and which to-day is actually worth
(even with the inflated value OF bullion,
owing TO enforced monthly purchases by
the government) in no part of the civilized
world over 50 cents. M. D. HARTER.
HOUSE OF REPRESENTATIVES, WASHINGTON,
D. c., March 20.-To the Editor. The bank
ing bill have introduced (H. R. 1887 pro-
vides for more elastic currency than any
scheme ever before proposed, and as elastic
as is consistent with safety, as under sec
tion of the bill the comptroller can allow
the largest issues of currency notes to the
bank in the six months of any year when
the reserve was the lowest in the previous
year, and the smallest volume of circulation
when it was the highest. Thus the banks
would find it for their interest to carry a
larger reserve during that season of the
year when there was the least demand for
money, because it would be compensated
for so doing by being allowed larger vol
ume of circulating notes when most needed,
and could carry lower reserve and larger
circulation in that six months when the
most money was needed in the country, at
which time the total deposits would
naturally be the lowest. When all the
banks of the country are operating under
the bill it will make leeway between the
highest and lowest circulation of bills is
sued under section 5 of nearly $780, 900,
keeping the notes issued under section the
same all through the year.
This bill does away with all bonds, but
makes the currency as safe to the people,
in case of the failure of the banks, as the
present system. II provides for the issue of
bills by banks equal to the average of their
reserve, and an equal amount secured from
the government by exchanging legal tender
for circulating promisory notes, the old
greenbacks to be cancelled and destroyed to
the amount of 80 per cent. of the currency
notes 80 secured from the government, 10
cent. to be reserved from the redemption
fund. It provides that the reserve of the
bank shall be not less than so per cent. in
gold and gold certificates, and not more
than so per cent. in silver or silver certiR-
Gates.
It allows the bank TO trench upon its re-
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