The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-08
rar rrmFs-RrcpMOND VA. SATURDAY DECEMBER 8 1924

notes which they directly issued on Iner
reserves. . ,.v
Then the Government would destroy
jus, as ma OF the old greenpa'n IL
Is issued OF the new ones to each JAIN
Immediately upon the issue OF the la. s,.ns
the Government. of course, reu,aS
In coin the greenbacks when ~ 49,,
TO the bank whenever the bahk III uIo.h n
any cause went into LIQUIDATION, ines
new greenbacks would be Issued uPop
the surrender 10 the Government py tne
bank of a sum quail to the old green
backs which would be at once desfoy-
ed a.
"Of course. there are details OF the
system which cannot be gone into in
newspaper article. All the machinery
for Government supervision anu cohlioi
would be retained and extended SO a. "
make examinations very thoroush anu
the real condition of the banks reVealeu:
both to the Comptroller OF the currency
and to the public"
The PRES ut GOLD RESERVE
What about the restoration. OF tne
s1OOOOOG1 gold reserve which has just
been accomplished by Secretary Cariis'e
in issuing his new loanE ~.
THAT is just as sure 10 fade away as
IL has done several times within the last
eighteen months.
THE Government cannot maintain
gold reserve by selling bonds, 80 long as
the greenback and Treasury note, WIN
which the gold can be at once take,l
out of the United States Treasury exist;
OF course. gold bonds can be sofa ana
gold put into the Treasury, but II rests
entirely upon the pecuniary interest ana
good faith of the bankers whether tne
gold remains there for twenty-four hours
In fact. while the present system con,
tiLues the gold reserve In the Unlted
States Treasury is practically maintained
at great expense to the people OF tue
country for the benefit OF anybody any
where In the world whose interest II IS
to have a large deposit Of gold kept at
any point at the expense of the keeper.
and from which that SOMEBODY may draw
at any time at no expense TO himselt.
"Will you further explain, Mr.. Walker,
what is gained by destroying the ola
greenbaCk and issuing a new one? You
say that the finances of the country are
imperiIIed by the existence cf the present
greenback and Treasury note, ana yet
you propose to issue new one
INCREASE IN CIRCULATING MEDIUM
why don't you see that the green
back | propose TO be issued the bank Will
have TO receive in coin as often as IL
exists in the financial system and is
presented for redemption, one time or
thousand times during its life, and the
United States Government would be Whoi-
~ relieved from responsibility, while
the present greenback has to be con-
stantly redeemed by the Government as
often as 1t is presented?
AS more greenbacks will be called for
as the country grows imam wiz ps SUI
rendered by banks going into liquidation,
the Government WI get gold rather
than lose it, by the existence OF this
new greenback, for the bill | have drawn
provides that the banks must pay me
old greenback, the Treasury note or coin
for every dollar of the new greeneack
issued 10 II, and. therefore. there would
probably be at the end Of twenty years
from 100000 900 to 5000, COO 900 OF these new
greenbacks in circulation, instead OF $320,-
900. 90. az at present.
"Do you regard these two sources or
currency money as desirable2'
mo. | do not; but | think that so
long as the people VIII not permit the
existing greenback or Treasury note to
he redeemed by bonds. this is the only
desirable way I'm which TO make their
existence safe-that is to say, TO make
the banks instead of the Government
responsible for their current redemption.
In fact. it is the only way while the
people are unwilling to replace them by
interest-beari bonds.
II know" said the Congressman, IN
conclusion. that the scheme which I
have imperfectly developed in my ans
wers 10 you is the system which Will
finally be adopted. not because II Is new,
but because there is nothing new In II.
II IS only adopting 10 our very exception
al conditions the principles and practices
which have been approved by the ages
/ and are now acted upon by the great
| European standardization Post.