Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1893-11-02
Currency Reform.

u ASe ~ " IA IcOSANt llOul nui TcautIs
tie attention it deserves. for it states
clearly aud distinctly the situation,
points out the causes of the present I'M
satisfactory conditions OF the currency
question in the United States, and pro-
poses remedies that seem to US sound
and practicable.
Mr.. Cornell attributes the present
situation to four causes (l) Silver
legislation; ~ Legal tenders; 60
National bank note regulations a.
Suppression Of bank currency.
Under the first head Mr.. Cornell
places all responsibility for the present
panic upon the silver purchase clause,
claiming that ne other reform will be
Of any avail until the poison Of bullion
buying is obiterated. He warns the
country that the unqualified repeal Of
the Silver Purchase law must be car
ried out that any compromise is a
compromise with poison.
Under the second head it is argued
that the greenbacks and treasury notes
are false in principle and a constant
menace to the stability Of the currency.
and that they should be retired
uder the third head the unscien,iic
character OF the national bank note is
discussed, and their retirement because
Improbable shown to have opened the
way for the current silver craze.
Oyer-security is deemed their greatest
fault because il excludes the elasticity
essential to scientific currency.
Under the fourth head the suppress
sion Of State bank notes by reason of
The 10 per cent tax is discussed. and
The effect Of its abolition pointed out,
and the claim set up that it would be
unnecessary if the right principle OF
security were introduced into the
national system, making bank issues
profitable. State banks could then be-
come national banks without trouble.
Some Of these propositions appear
TO break into the traditions of both the
.greatpolltical parties but those who are
amillar with the financial history OF
The country are aware that the nation
a banking system, the legal tenders,
the national bank notes. the 10 per cent
tax on State bank i,sues-these and
many other acts of legislation were ex-
pedlents, adopted not because they
were the best, but because they were
best suited to the exigencies Of the
times. They served their purpose, and
served it nobly, but the very expedi-
ents that helped save the nation in
time Of war threaten its prosperity in
time Of peace.
50 far as the currency question is a
political question it is gratifying to
know that the republican party, now
rs ever. is on the side Of that which
makes for progress in finance as well
~ in all else, and is ready to replace
al expedlent with a scientific principle.
As the republicans passed the Sherman
law Of 1890 in order to prevent the
passage OF worse one, so they became
responsible for the legal tender paper
money and the national bank note
laws-vilal TO the nations life then !:
menace TO il now.
But TO return to Mr.. Cornel's ad-
dress He is not an iconoclast he
proposes better structures in the places
Of those be tears down; be proposes
these remedies:
Stop buying silver.
Retire the greenbacks and treasury
notes gradually, letting national notes
under new regulations take their places.
The regulations to be Abolition Of
the government boBd security. making
bank notes first lien on all the assets
OF the bank, including the double La
bility Of stockholders. Introduce a
guarantee fund if necessary. Limit
issues to q proportion Of the capital
stock. Establish central redemption
agencies throughout the L nited States.
Let all notes be printed by the govern
rnent, as at present.
Adopt these remedies, aud we would,
he claims, have a currency secure, uni
form. convertible into specie, and thor
oughly elastic commercial prosperity,
so far as it depends on the currency,
would come to stay, and the Dollar
instead of the Pound Sterling would
rule the world.