The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-07-21
INCREASE OF CIRCULATION.


Following 10 an extract from . letter
written by Hon. d. H. Gilman, Of this
city, 70 friend in the United States SEN
ata. The plan Mr.. Gilman proposes for
increase Of the circulation and relief Of the
prevailing financial stringency Is worthy
Of careful consideration. and he makes .
strong argument in favor Of his remedy
for what he truly says is an unnecessary
furry"
Il suppose that things have now come to
ing clause of the Sherman act 10 necessary.
and that such repeal is a foregone conciu-
sion. was, personally, never In favor of
that act. but was for free coinage. and
had We had that we wouid. believe, have
avoided our present difficulties. Under
existing conditions however, both in this
country and abroad. believe free coinage
by this country alone is. at this time, not
only impossible. but undesirable. Taking
this for granted it seems to me some ex-
panslon OF the currency in other direc-
tons has become absolutely necessary.
This country is rich, and ,obut for this
most unnecessary and causeless furry,
prosperous. but the wheels Of commerce
are now blocked and in the absence of
proper remedial currency legislation it
will be . long time before they are in mo-
ton again. industrial and commercial
distress will prevail throughout the coun-
try. Even the teachers of the object les
son" are now in distress and are not hav-
ing half - much fun out of it as they
thought.
"My object in writing was to make some
suggestions as to . proper currency. I
believe an abundant currency on gold
basis can Be easily provided. You and
both believe. think. that no country ever
had better or safer currency than our
treasury notes and national bank circu-
lation. Why not. then. enlarge both on
more liberal. but still perfectly safe. basisf
My plan would be:
''First-Enlarge the treasury note issue
from $346. 900 600 to $500 900. 0o0 or even
$500. 900 O00 Increase the treasury reserve
of gold against that issue to 500 OCO, 900
by sale of United States 3 per cent. bonds.
and give the treasury power to maintain
that reserve by further sales Of bonds II
necessary.
''Second-Allow national banks to issue
notes to the full amount of their capital
stock without bond collateral, making tho
note issue first lien on the assets OF the
bank. and compelling the bank to pay one
or more per cent. into . guaranty fund, to
be kept in the national treasury, to re-
deem at once the notes Of any bank going
into liquidation. This is practically the
Canadian system. and is perfectly safe. If
thought necessary to prevent the organi-
zation OF too many banks for the mere
purpose of taking advantage Of this note
issuing privilege, it might DO required
that the bank be at least two years old be-
tore issuing any notes. and that its sur
plus should b at least Is per cent, and
perhaps 50 per cent. of its note issue.
Some ouch provision a. this would insure
stable character to all note issuing banks.
Banks should be allowed to issue still
more notes by depositing United States
bonds. as at present. only the issue should
be the par Of the bonds, instead Of 50 per
cent
"Third-Na intain the existing silver cir
cuiasion. with ali its present powers and
privileges except, for the purpose of uni
f0rmity. replace the coin certificates is
sued under the Sherman act with either
regular treasury notes (greenbacks) .or sill
yer certificates. No treasury notes or
bank notes Of less denomination than S
two dollar notes and silver coin in 80 great
that oil this large amount Of silver or it,
paper represen tative could be kept in use
full circulation without the slightest
trouble.
1.-THE plan above outlined would provide
. large, perfectly safe and elastic circula-
ton, backed BY the wealth o. the country
government. So long - the circulation is
sound We cannot have too much. and
certainly this country is rich enough to
properly back . currency that shall be
with its needs. OF course
there il q largo class that will say. Why
not let the government issue all the cur
rency? / would be in favor of that my
self If 1t could be issued and applied in
such way as to reach the business needs
of the country, but see no practicable
way of doing that to the extent required.
The banks furnish the proper medium to
reach the right spot in every section Of
the country.
''such plan as have outlined would
put the entire country on the high road to
on d sound basis and without
danger Of unhealthy imitation. ! am
aware TINT this plan involves the sale Of
United States bonds to the extent Of
$l00, 900. 600 At least, and possibly $780,
CO.., 900 before We are through with the
matter. and am further aware that the
government has no need TO increase its
bonded debt except to provide large gold
reserve in the treasury, but believe our
thus entering into competition with Euro
pean countries in the struggle for gold viii
speedily bring about International BIZ
end we all wish to attain.
The interest tho government would pay
on the additional issue Of bonds would he
q mere bagatelie compared with the fright
full losses the business and laboring classes
have sustained during the crisis Of the
present year"