The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-02
AND NOW THE CUnKENcYoUEsTIoN.


One very live political question before
a people at one time has been enough TO
occupy their attention and even 20 make
parties; but within twelve months we
have had, either In quick succession or
all at once, fOr consideration and deter
mination, the decentralization of silver
the overhauiing Of the tariff, the levy
ing OF an income tax, which has been per-
mitted 10 grow as malignant tumor
upon a tariff bill intended to be Demo-
cratic and for revenue only, but which
has been distorted until IL has fallen off
the Democratic platform; and. as If this
were not enough. in addition to very seri-
Gus questions between labor and cap
ital we have now the whole question of
paper currency precipitated into the
arena of congressional debate and public
discussion.
This great subject comes up on bill
introduced into the House of Representa-
lives to suspend the operation Of the law
imposing a tax OF ten per cent upon
notes issued during the panic last sum-
mer and fall.
The whole question Of National or State
banks of issue. Of currency issued by
State banks but controlled by Federal
law, of a currency issued by State banks
under State law, of a currency issued ex-
clusively by the Federal Government. OF
the total retirement of all United States
Treasury notes--all these questions, ana
more besides. are now under discussion,
and 1t is of the utmost importance that
the people, from whose opinions at least
! nine-tenths of our congressman take their
cue. should have the case fairly laid
before them.
But short while ago the proposition TO
permit State banks to issue their notes,
redeemable on demand in gold or silver
or legal tender notes, would have been
secuted as equivalent 4 "a bald-faced at
tempt TO perpetrate frauds and to rob
the laborer. the widow. and the orphan.
Happily this notion is giving way to a
more intelligent view Of the subject. al
though there are yet some whose preju-
dice, born Of ignorance, against state
banks OF issue is such that they seem
. to regard the note of the most solvent and
powerful State bank as no better than
a counterfeit
The cause of the State banks has its
most powerful supporters In the very ar
canum Of the so-called money power"
The abiest financial and commercial
papers of New York are out-and-out Tor
the repeal of the tax Of ten per cent. upon
State bank notes.
The Journal of Commerce. in reviewing
Mr.. springers bill before the House OF
Representatives. which 1t most ably and
heartily condemns as but "revamp-
ment OF the national system" says:
All that the Federal authority impera-
lively needs TO do is 10 declare what
conditions shall be observed IN order
to insure the absolute safety OF the notes,
and in order TO maintain their quick
redemption in periods of redundancy
of circulation. The more entirely all
minor details of management are left
TO the regulation OF state power. the
more elastic will be the working arrange
ments OF the banks and the larger the
scope for competitive Improvement and
adaptation to local wants as between
the banks OF one State or section and
another.
In order TO insure the safety OF these
notes. Mr.. Springer had most elaborate
scheme for the deposit of bonds-a ia
vorite plan for securing notes and need
lessly tieing up the very capital which
the banks need for their customers.
About this Mr.. springer's critic says:
In principle. this contrivance is the
counterpart OF the existing National
bank guarantee. and not one whit less
burthensome. Can II be possible that Mr..
Springer is ignorant of the universally
confessed fact that IL is this very method
OF guarantee which; along with the tax
on notes. has already more than half ex-
'tinguished the National bank circulation
and Is Fastening II to final extinction?
The first essential Of system that will
meet the vast monetary requirements of
this rapidly growing country is the utter
ing OF such q guarantee is wholly in
compatible WITH adequate issues of this
form OF money.
Mr.. Springer now flnds himself In com-
petition with a far more perfect plan.
vix.-that of piedging the entire assets
against the not This most perfect
form OF note protection 10 that provided
IN Mr.. Warmers >plap. and 1t Is to be
hoped THAT discussion may bring the
House 10 accepting that measure; for,
with some very tifhrfateriai exceptions.
Il approximates completeness, and COM
mands more than any other scheme the
approval OF experienced bankers.
Where all the assets OF the bank, and
an additional liability on the stockholders.
are made the security for the
notes. II can be seen that further guar
antee is superfiuous. DeposItors win not
put their money In bank which has
10 pay it, notes before they receive a
dollar. while the issue OF notes IL linn
TIED TO only q part Of the unimpared
capital OF the bank.
ons notable truth 10 brought out By