The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-23
CURRENCYANDFI FINANCE
,.xoyxs OF THE PRESENT SIrul-
rIoN DISC USED.
rbs Treasury should be Divorced from
Ali Responsibility for the Rsdemp-
ton Of Nctes-H. X. n06I5.

fhi few persons who have not given
careful attention 10 the matter realize the
dangers attending the present financial
situation and the absolute impossibility
q a remedy. excepting by a return TO
The old Democratic policy OF the absolute
divorce OF the Treasury OF the United
states from any responsibility for the
current redemption" of single dollar
o. any form Of paper money. This has
been a fundamental principle OF the
Democratic party for three-quarters Of a
century, as expressed in every Democratic
Platform and in every party vote in
Congress.
rence give their opinions any specIel
value. are agreed that the money of the
country should be- First, safe: second
abundant; third. elastic: fourth. uniform
NTH. cheap. sixth in the places most
needing II, as far as is practicable. A
moments examination and reflection will
show that the money OF this country is
open 10 criticism in every one Of the six
qualities enumerated. The fact that our
system OF issuing paper money secured
by me United States has thus far pre-
vented the loss or a single dollar 10 any
person holding the currency notes of n
failed bank has so obscured the vision
81 thoughtful people that It has prevented
mem from seeing the radical deficiencies
Of our financial system.
flfst' The guarantee to the holder OF
any currency bank note, that he shall be
PAID In full. in case Of the failure Of
The bank issuing It, is no part Of banking
proper. Such a guarantee however GER
tain 10 be made good. does not make any
paper money safe or good money"
IL only makes the holders Of such notes
preferred creditors Of the banks in case
the banks fail. 1t is the same to persons
made creditors Of failed banks by holding
their currency notes that IL is 10 wage
workers. who are made preferred credi-
tors of failed manufacturers by the laws
OF most States, and who are first 10 be
paid. which is no part OF manufacturing.
What makes paper money safe" or
''cood money" is its certain and instant
current redemption" in COIN which is
done ten times or ten thousand times.
as the case may be. with every paper
dollar during its life, and as often as il
IS returned 10 the bank issuing IT, The
promise Of the United States TO finally
redeem" the greenbacks may be safely
cr-'inued: but the banks Of the country
must proportiOnately assume their cur
rent redemption" that our paper money
may be good money" There is abso-
lrfely no other way out OF our present
financial dilemma. II is a physical i'm
possibility for the Government TO eur
rently redeem" paper money. The way
II having the banks do this-and TO their
gain. not their loss--is worked out in bill
H. r. 1o6l5 report $50.
To doubt the safety Of paper money is
70 condemn IL. safe" paper money is
money that is sure OF instant redemption
in coin: and where two coins are re-
cognized as legal tender. Safety means
SIS sure and instant current redemp-
ton" In that coin which has the highest
commercial bullion value. To-day there
are $1,000 10000 OF paper money upon
800 non On OF gold coin in the United
States Treasury. There is not a financier
in the country who believes our paper
money IS safe" and The existence Of
this doubt" is proof conclusive that il
las not the equivalent of commercial
safety. Our currency is not even album
dant,' for abundant" means enough
when the most is needed. and II is i'm
possible TO have enough when the most
IS needed" with currency that is not
elastic" That our currency is elastic"
no one has ever claimed. To suggest that
Il is uniform would only provoke
smile. That IL is not cheap" is proven
by the bare statement that our banking
laws compel the banks to lose all income
on one-seventh Of those assets of the
banks of which European banks use every
dollar. That 1t is not forced. as far as
practicable, TO the places where it is most
needed. Is proved by the fact that there
IS no especial inducement 10 each bank
% compel every other bank TO currently
redeem its own bills thus keeping them
constantly travelling back 10 the bank
that issues them. and having them at the
point where they are most needed thus
a int oF 10,
% prefer TO make loans TO persons de-
string bank bills" in that locality, in
stead Of checks and drafts on large cities
The banking bill II. r. 10,6l5. reported 10
the House for consideration by that sturdy
New York Democrat, Henry Bacon. who
was chairman Of the Committee on Bank
Ing and Currency in the Fifty-secOnd
Congress, secures every one OF the six
qualities Of good paper money in as high
degree as modern financial method has
devised. as opposed to our present paper
money, which Is deficient in each one.
Second. I wish 10 call attention 10 the
fact tfat Il Is impossible 20 bring the
public mind TO accept any other possible
remedy for the present perlls 20 the
finances Of the country. other than lcgis-
lation that will reconcile the banks u
the idea OF wholly relieving the United
States Treasury Of the current redemp-
notes and the 5000 600 Of Treasury
notes Of July IA. 1890. which, will exist
on July /, 1894. and OF making it for the
interest OF the banks TO assume this
burden Of their current redemption"
while not practically destroying them
keeping them in Substance. but making
them good money"
Third. To the impossibility Of safely
removing the 10 per cent. tax upon State
bank circulation and OF allowing State
banks 10 issue circulating notes, until
the securing Of the current redemption"
o. the greenbacks by the banks is ac-
complished. provided the United States
Treasury is ever 10 be relieved from
being practically responsible for the cur
rent redemption" OF every dollar OF the
8 100000 OF existing paper money,
while the hands OF the Government are
TED from using the devices Of modern
finance" for performing that service.
Every principle OF modern finance mill
tates against the Government doing IL.
Fourth. There Is no difficulty In the
PRACTICAL working OF the pl ~ for inducing
the banks 10 wholly relieve the United
States Treasury Of this S5OO,COOON OF
legal tender and Treasury notes, by
sliaply making II for the interest or the
banks to do so. while at the sane time
giving the people a popular substitute
for the present greenback in new bank
"ereenback." under section No. OF the
bln. and al the same time lowering the
rte Of interest on the money the people
borrow Of banks by nearly one-seventh.
Fifth. II is entirely feasible 10 induce
the members OF the Fifty-third Congress
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