The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1894-12-22
THE CURRENCY QUESTION.
A West Virginia Editor Who has all
Along Advocated the Silver idea
Makes Some Good Suggestions.

The currency question is uow the
al absorbing issue OF the hour
AT Washington, and the efforts of
the law makers are directed toward
an effort to perpetuate the power of
national banks aud at the same
time relieve them from the obliga
tion of protecting their note holders
by a deposit Of government bonds
Upon this subject Editor Horner, of
the Parkersburg Sentinel, recently
wrote aud published fine CURRENCY
editorial, which is given following:
In order to get normal suppaxt in
fnrtheranee of the object in view Sec
Rotary Carlisle has written TO bank
ers all over the country asking from
them an expression of opinion on
the plan which he has matured. We
can answer for nearly all of them,
and say in a most emphatic manner,
that the Baltimore plan" will meet
with almost universal appreciation
among the bankers This new
scheme relieves the banks from the
burden of buying government bonds
as basis for the issuance of nates
and as security to the note holders,
and st the same time provides them
/ with all the circulation they want
L. is proposed to operate them some
what after the plan of mutual insnr-
anee companies.
The law requiring banks to depos
it government bonds To secure cir
culating notes is to be repealed.
Banks are to be allowed to issue
notes 10 the amount of thee fourths
of their unimpaired capital upon de
posting legal tenders To an amount
equal to 30 per cent of the notes is
sued to the hank, The other 70
per cent of circulation is based up
on the liability of the stock holders,
and without other security than a
redemption fund of per cent OF the
amount in circulation. In the event
of a bank failure its notes are first
lien against it's assets. So then as
a fact. if Carhsle's pan be adopted,
the circulation of banks will be
based on 80 per cent OF security and
So per cent OF faith The giving "a
first lieu on the assests of bank To
the holders OF its notes, and thus
appropriating the deposits, or the
loans made on the deposits. of its
customers is neither right nor hon
est. The whole tendency Of THE
plan is wild catfish.
IL a few common sense rules were
applied to our national finance sys
TEN there would be no trouble in ad
| iusting affairs To suit all conditions,
and providing the country with an
elastic currency. The present ma
tienai banking law modified in a few
/. particulars would give our country
the best banking system in the
wGrld II banks were allowed cur
rency 10 the market value or par
value of their bonds; the issuance Of
notes of less denomination than ten
iuiiaiH plbHlbitttts ~ PEI Ntuh VI ut
posit reserves allowed to be kept in
silver; silver coined freely. and the
ten per cent sax on state banks re
pealed, we would have u perfect and
"A satisfactory system. Then as to
the treasury the law should be so
changed AS To protect the treasury
vaults from the raids of gold spec
ulators. A law authorizing the re.
demption Of legal tenders in coin,
and requiring the secretary of the
treasury. whenever the gold in the
treasury is reduced To specified
amount, say one hundred millions,
to thereafter use silver for redemp
tion purposes, and requiring the
payment of all custom duties in
gold, would put it out of the power
of spectators and Wall street to
embarass the treasury or alright the
country.