The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-13

they would return to the banks for redemp-
tiOn, and they would have to be redeemed
In legal-tender money provided by Con-
Rress. The Constitution provides that
Congress must provide all the money that
possesses full debt-paying power. BY every
consideration of sound business principles
it should provide all the money the
country requires. As in the past. so In the
future, every period of financial depression
would result in more or less general sus.
pension of specie payments by the banks
If the State bank notes are ailo wed TO clr-
culate their acceptance becomes q busi-
ness necessity. While the wealthy might
provide themselves with means of discrlm-
mating against the notes of weak banks.
to the average labOring man bank note
detector would be as inexplicabie as the
binominal thereon. State bank circulation
loses Its money power In CRISIS; instead
of paying debts it comes forward itself to
be paid and SO adds to the danger.
"Mr. Edward Atkinson has SAID that q
bank note Is practically the same as
check and that the government. therefore.
should allow them to circulate without tax
or interference the same as 1t does checks.
This Is speciOus reasoning. NO man ac-
cepts check without inquiry as to the
credit of drawer and drawee. Then, too.
checks must be paid: bank notes are money
aud do not need to be paid in money. There
is no more fallacious idea than that We
Can have good local currency. While
note might pass at par in Kansas and at O
power would be the equal in the both
places. The discount in PenDsylv ania
would be equaled by corresponding in
crease of cost price in Kansas. Thls
is an. evltable law attendant upon
deprecated currency. If the States are to
share with the United States the issuing of
paper money, we will have q chain of
soverelgnties. each with varying laws and
systems. The profits on bank circulation
depends upon the length of time it is out
standing In order to get their notes into
general use and keep them outstanding.
State banks would seek to arrange with
city correspondents for their redemption.
As q result of the intense competition for
bank accounts. all of our cities would be
drawn into the meshes, and the weak and
bad notes would not be confined to the
place OF Issue.
"ClrcuIations should be secured. When
the United States bonds cease to exist,
other suitable securities will exist The
function OF the government is not merely
to project the note holder. but as far as
possible to protect all creditors. in recent
years banks have become large owners of
securities. Since this 10 the case, 1t would
not be an onerous provision to require
them to own proper securities as basis for
circulatingnOtes. During the thirty years
existence of national banks ISL have
failed. OF this number only thirty eight
have paid creditors In full, principal and
interest The total amount so far paid to
creditors of InsOlvent banks has been
about S4S. 900 900 upon proved claims of over
S1O.O00,0O0. OF forty-One of these banks.
the total amount of dividends paid was
less than the amount of circulating notes
outstanding. and but for the bonds required
as security nOte-holders would not have
been paid In full. Safety fund provisions
are more onerOus to banks than the en-
forced ownership of securities"
The Hon. w. i. Trenholm said: There
is now no subject before the people of the
United States equal to this question of the
sort of money we are going to have. The
recollection of hard times during the
period Of greenback redemption should
make rs careful TO have our money of the
best that is obtainabe If we do not keep
our money of the best and keep the gold
standard we will have to 60 through an.
once let 60 of the gold standard 1t will
cost us years of sacrifice. toil and tribula-
tion to get back to the gold standard
again."