The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-08-22
SEATTLE. TUESDAY. ARC. ss
TUE VOORHEES, BANK CIRCULATION
BILL.


add about $4,000 GO to the circulation.
The new circulation asked for since July
viii add nearly si0.0U.o 900: gold imports
some 50, CO.., COO. aud gold products some
s2.500,0Oo more. This will give rs over
So, 90. 900 increase before September with
which TO move the crops.
The Voorhees, bank circulation bill pro-
poses TO allow the national banks 10 Issue
notes up 10 the par value OF bonds de-
posted. 1t Is significant fact that Sem
ator voorhees,. hitherto leader Of the
Western cheap money party. should have
favored this bill. which lie has hitherto
always opposed: and 1t Is also significant
fact that he was willing to vote for the re-
peal Of the silver purchase bill in
COMMITTEES, with nothing but broad.
general relieratson Of the policy of bi-met-
ailism attached. This was remarkable
act for senator that has hitherto always
been blatant advocate Of free silver coin
sge.
The enactment of the Voorhees, bank cir
cnlation bill would be timely measure.
Our national banks In taking out note cir
culation are permitted 10 issue only TO the
amount of 80 per cent. OF the par value Of
United States bonds deposited as security.
The bonds for long time have been cost
ing the banks much more than the par
value and consequently the bank note cir
cniation has been undergoing q tremen-
dous contraction during recent years. rs
ct the price Of bonds there was no money
in IL. During the last two months, how
ever, the financial pressure has 30 de
pressed the price of bonds and advanced
the rates for money that the banks have
found II possible to make q profit by in
ereasing their note circulation.
For more than ten years the Voorhees,
proposition has been regularly brought up
In congress. John Sherman succeeded
once in getting the United States senate
topass IL, but 1t was voted down In the
house by Western members. who have an
insane hostility to national banks. The
passage OF this bill would not impair the
security of the bank circulation in the
least. but hitherto the Democratic ma
jority In the house has seemed to be bent
upon breaking down the whole national
bank circulation.
The change of front of Senator Voorhees,
on this measure Is probably due 10 the
present monetary stress. which obiiges
congress now to take more reasonable
view than hitherto of the question. II
more money is what the Voorhees, infia-
ton party want. why not enact this bill.
which adds Immediately at least SO. 600. 900
20 the currency or course. until public
confidence returns the mere issue of more
money will not dispel the present none
tary scarcity any moro than the reissue of
$4,000. COO of ereenbacks did in 1873. bat as
9 palliative pending the repeal of the silver
purchase act the voorhees, bill would be
OF service. IL Is really nothing but tenn
pofery expedlent, and pending the coming
Inevitable reorganization of the bank sys-
TEN ought not be Objectionable to any
party.
Democratic congressman, Tom l..
johnson, OF Ohio, has q new scheme
whose gist is that the government shall
convert It's bonds into currency on de-
nand, the interest on the bonds 10 be sus-
pended during the time they do service as
currency. Briefly stated, Mr.. Johnson's
proposition Is that every and any one hav-
Ing government bonds shall he privileged
to deposit them az the treasury OF the
United States and receive thereon their
face value in treasury notes. the interest
on thc bonds 50 deposited to cease until
redeemed by the return Of the notes. The
advantage Of this would tie 10 give the
country ~ once a much larger volume Of
weIl-secured currency. The treasury would
risk nothing. for the notes, IL issued. would
be secured by bonds worth in the markets
more than the notes, At the same time
tho government would Re saving the In
tessst on those hondS- Mr.. Johnson fairly
argues that the savings banks would he
greatly benefited by such LAW. They are
large holders of government bonds. which
they cannet market sxeepi st a sacrifice
when their depositors ara making larre
drafts upen them.
This proposition Of Mr.. Johnson. n IL
Should become Law. would enable the
savings hanks 10 turn their beads al onos
iaso cash without a sacrifice when pressed
for ready money and procure them again
without any less except the temporary
suspension OF interest Such law would
enlarge the volume os Currency. when by
boarding anu the breaking down Of credits
currency 10 in excessive demand. This
proposition Of tails Democrats congress-
man IS commended by leading Republican
journals, ike the rhilatelphis Press. as
providing safe naeshcd of Eefanains the
earrcney without any risk or loss TO the
government or those taking oat no,es on
government bonds
The practical scarcity ct currency al =
time when ws haye mose currency in legal
existence than We ever bad before oagas
10 teach The people the utter Ahsara.sy Of
the theory that the scarcity OF money
makes bard times aud that the plensi saese
ei money makes good times Noasy To-.
day Is scarce because collateral IS scarce or
doaestal. or because pcopls who have
meRey shlnk IL Is toahsfal. and sasst rab-
llc ecasdsnce yesurns The mere aecAaa-