The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1894-12-27
Currency Reform.

gress has not shoWn either capacity
or sonnlness in its treatment OF this
question. 1t is true that the House
Of Representatives dealt quickly and
effectively with the purchasing clause
Of tile Sherman law. and that it re-
fused to repeal the tax on State
bank circulation. But, in the first
case, it yielded to pressure that did
not appeal to its reason, while the
question Of repeal Of the tax on
State bank issues was not presented
in the way calculated to bring out
its full voting strength. In short,
the country has no reason to expect
that the present Congress vii. dis
cover rational way out of our mon
ctary difficulties, and the President is
right, if the report concerning his
motive is true. in assuming that II
he had postponed the call for the
loan until Congress met, the situa-
ton would be so complicated by that
body that the loan might fail. That
the loan itself is advisable there is
little doubt. 1t may be that the rev.
enues for the rest of the year will en-
able the Treasury to meet its obliga-
tons, but even if that be SO, the
knowledge that the government is
always on the verge of financial diff
fcultics Injuries its credit and dis
turbs business, especially the business
Of dealing with the vehicle which
carries all trade and commerce. y
comfortable balance is as essential to
the Treasury of the United States as
to any private business house.
With the money obtained from the
sale of bonds, and the resulting easy,
sssspasta he w viii e cleared
for the calm consideration OF the mon
etary problems of the Treasury. 1t is
too much to expect that this Congress
will grant to the Secretary a power
that he ought to possess-the powe!
to borrow money for short time and
at current market-rates whenever ne
may need funds-but it is quite per-
MISSILE to expect that the currency
question may be settled. 1t is un-
derstood at Washington that the
President will conGne his message to
this question. Certainly he can dis
cuss nothing more important OF more
vital to the interests of the country.
And, in fact, the. need of reform is
recognized by all parties and factions
in Congress.
We have, besides our gold and sill
YER coins and their Immediate paper
representatives, the certificates, green
backs, Treasury notes, and national
bank notes. The greenback is the
most dangerous and harmful element
of our currency. It's principal use OF
late has been the procuring OF gold
from the Treasury. 1t has been a
most potent source Of weakness in our
system of finance, and ha:' been the
helpful ally Of those who found 1t to
their profit to deplete the gold re-
serve. The Treasury note represents
silver, but is really a gold demand
note. The national bank circulation
is inadequate and inelastic. The
paper currency of the government
works to it's harm and discredit, while
the currency of our banking system
has shown itself to beSunablc to re-
spond to the demands Of business.
1t is generally admitted that the
country needs better currency and
more banking facilities. 1t also needs
what other civilized nations possess,a
currency that will respond to the re-
ouirements of those who use lt-ol
those who are carrying on the busl-
ness of the country-of the farmers
when they have wheat to sell, OF the
factors and shippers when they have
it to buy. The country needs a sys-
tenn by means Of the automatic work
ing Of which the amount OF currency
in circulation will increase or dimln-
ish as trade desires. Such system
can be based only ON credits-that is
the demand of merchants on the
banks for discounts must determine
the amount of currency that is neces
sary at the moment for the conduct
of the business Of the country.
A plan for accomplishing this end,
aud for Transforming the inadequate
national banking system into one that
will be satisfactory, ais known as the
Baltimore plan. Its origin has ! been
SO often discussed and its details SO
fully set forth in the daily Rewspa-
pers that it is only necessary to eN-
plain its purpose and its main TEA
lures. Apparently it has the APP
proval of most of the bankers who
have taken the trouble to study and
understand it, while Comptroller
Eckeis strongly favors it, At the
meeting of the New York State
Bankers Association held last week
It was endorsed, and apparently the
opposition to the plan or something
like It is confined to those who are
l..>I.c