Morning journal and courier., 1892-12-17
CURRENCY AND ITS FUTURE.

Views Of New EnglaRd,s Represent
 atives in Congress-A Strong senti-
 ment in Favor Of a Bullion Basis
 for Circulation National Versus
 State Banks-Boston Bankers Fla.
 vOrable to the Comptrollerss Re-
 funding Plan.
 BOSTON, Dec. 16.-The Boston Commer- cial Bulletin will tomorrow publish the results of an extensive correspondence with members of the New England con- gressional delegation on the currency and Its future. There is substantial unsnimity in favor of substitution of more con- seryative legislation for the act of 1890. As to the future of the currency, there is great division of opinion. As regards state banks, however, both parties in New England, seem, in spite of the Chicago platform. to be united. Mckinney of New Hampshire favors an amendment to the national banking law rather than the re. establishment of state banks. Sperry of Connecticut believes that the volume of the national currency Is large enough for the present, but with few exceptions, there is general assent to the enlargement of the currency (contracted by the repeal of the Sherman act) by the amendment of the national banking laws rather than through state banks. This view is shared even by such political opponents as Messrs. Coolidge and Morse of this state. Some congressman, Walker among them, agree that ''a tax on circulation ia thoroughly uneconomic.n This opinion, as far ss the tax on national hank ofranl nlaffor ia ;oo Walker, however, believes that bonds are an excresence on the banking system, and neither he nor Cogswell would exempt bonds owned by the banks ss basis of circulation from state taxation.
 Senator Gsllipger is among those inclin- ed to believe that the exemption (which exists in the case of United States bonds held by individusls) might safely be made, and Mckinney of his own state, with Morse and Coolidge of Massachusetts and others, agree with him. There is, with few exceptions, substantial agreement to the proposition to permit the issue of notes by the banks to the par value of the bonds deposited instead of to 90 per cent. of their value. There is strong senti- ment, however, in favor of 0 bullion basis for circulation, and it finds supporters in Cogswell, Russell and Mckinney. The recommendation of the comptroller of the currency in favor of refundipg in long term per cents. has found favor in the eyes of some of the most conservative bank managers in Boston, and it has strong endorsement by Dingley of Maine. Lodge recommends the repeal of the silver purchasing clause of the act of 1890 and would amend the ns- tional banking law rather than establish state banks, 80 that if enlargement of the currency Is needed it could come in that way. He naturally recommends the issu- ing of notes to the par value of bonds de posted, but doubts if relief from existing taxation alone would make circulation of notes profitable. He fayors refunding where we can with per cent. bonds and using them as a basis of circulation and by providing (ss in the case of the Banks of England and France) for a gold reserve make the national bank system permanent with permanent basis and thus capable of expansion to meet the fullest demands of the country.