Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-07-31

the Bank OF Enkiahu. SeefetAIJ NC
Culloeh before the Bankers association
In 1854 expressed an opinion directly
contrary to that of Comptroller Knox;
~, q therefore quite certain that If
and vxhs. national bank notes are with
drswn fr,u circulation. their places will
BE- filled not with the notes Of state
banks, but with the United States legal
tender notes"
Lastly. what does Senator Sherman
in his speech in the senate, June 2, 1892,
proposef
.gIhe pro,pise Of the government now
In time n peace with all the untold
wealth that has accumulated since the
war, is ample me rgin enough to main
tain all the parer money that j. necessary
for the circulation OF OoOVoOOO people;
] believe that there is intelligence and
good sense enough 10 the congress of
The United States to deal with this ques-
ton and 10 establish an issue Of paper
money upon the population Of our conn
try at a ratio that prudent man will
feel TO be safe under all circumstances.
We have gold and silver enough as a
basis for all the circulation outstanding
now. probably one-third Of gold and one
third Of silver at their market prices,
except that II new ratio were adopted,
then they would be substantially the
equivalent Of each other and then prob
ably the issues Of the One-third would be
based upon the credit of the. govern
ment Snch fiscal agency could be sup
ported by the gold and silver In the
treasury and the pledge Of the govern
ment Of the United Stftes contained In
the resumption act, that its bonds should
be sold II necessary TO maintain resump-
ton. Such scheme as that--such a
system as that-might be easily adopted
by prudent men
Shall the government, then, become
our bank Of issue? is 1t likely that our
bankers and "our people will consent
to this proposal;
Government issues are open to fatal
objection. Such system would be
subject to the changing opinion aud cap
rices Of each successive congress. The
demand for currency that shall open the
way for better distribution and that
would not tend toward our great cities
could not be met. A simple increase of
the circulation by the increase of govern
ment notes would inure chiefly TO the
benefit of those who control the largest
part Of the existing currency. If the cir
culation were doubled, the ratio of dis
tributon would be practically maintain
ed. Lack of elasticity would, as we
have seen, be the characteristic defect.
49,
Now, what is the "reactionary" pro
posal Of the Democratic party, 10 which
the consent Of our people is asked? What
solution Of the problem does 1t propose ?
1t realizes the difficulties and dangers
of dealing with finances. II has regard
| for what Is practicable. The proposal
is merely to draw up certain general
regulations and then to repeal the 10
per cent tar on the notes Of those state
banks that comply with the regulations.
| The party has not yet recommended the
establishment of single state bank
1t proposes 70 open the way for each
state to decide the matter for itself.
SO
THE REQUIREMENTS OF A
NEW SYSTEM.
It only remains to state what Is claim.
ed for the system that would exist If til,
law was REPEALED, and what its work
ings would be.
In the first place, we would have fl.
nancal Arrangement in harmony with
the spirit Of American instimtons-n
paramount federal system, and local
system Of issue. This is the divergence
that characteriEes and gives strength
to our fabric The country is too ex.
tensve. the conditions aud the demand,
OF the different sections too varied. To
make 1t possible for the central govern.