The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-30

the existing lack OF financial assurance,
Those notes are in every souhl seiIrs, ~ az,
Legitimate form OF currency. ansh FL. r,tt
~ with gold cannot be satsiaC.o,l5
guaranteed: and the amount OF issei'
required against them increases In a
larger proportion than the additions
their volume; so that, for lnstan.e' -
$io"o,po OF gold sufhced 10 pfVtevt 49,, vWI
S3ij 10000 OF "greenbacks.' II Is douptiui
whether SOD, 90. 600 would suffice To main
tain the outstanding SDWpoW OF tSnch
backs and Shermans combined' ~
money, Moreover. is always In danssit
running into over-issues from Wv, ~
political causes; whilst the supply &c torr,s
paper money is one Of the worst ~ -,
Of danger TO the credit or n Cover III ~,
as we have had good reason 10 ,heae
from memorable experience fOI mis-
ana other equally cogent Itdsonto,,n ,he
country should not be satished WI.ibaif
above-suggested retirement OF on Ie~sI
OF the present volume OF paPsit ,,,,,ish
tender. but should ultimately eN'ssIs o,,r
the entire issue. and all the SAFER 20 % the
currency system II an amenHiltIIt tht,fnp
constitution were adopted
all such issues in the future. =. ...--,,o,,t
?. In order 30 secure "a the EoNei III 90
an assured gold income ana protins III
its coin obligations. a law snoulu " 20 -
ed forthwith requiring that - per - - ~
all customs duties shall De pay @uie ~, -.
goid coin. This would insure ~ ,riiiIons
gold revenue OF from 100 10 10 IhlliOlla,
which would suffice 70 meet any c NJ.
demand for that metal 10 which the Urea
sury could stand exposed. As the 10y
now stands. all the duties M NAY fac ~ tbev
are at present being so pald' ths II ~
being there is nothing 10 prrVeht NV
Treasury from being drained OF itS ldsl
dollar or gold. excepting tns heiSgh I'm
sheraton shown by the bank, when Dotn
last year and this has been i9r reasons
Of prudence withheld. and Is 4 dependence
10 which no government fiscal system
should be subject This arransehleIt
would iFnmeasurabiy strengthen the post
ton Of the Treasury and would Of itself
largely contribute towards the restoration
OF confidence. For weighty reasons. how
ever which we cannot now reclte; ms
protection would be- insufficient without
the retirement i'm whole or I'm large mea-
sure, Of the demand notes Of the Treasury.
.. In order TO prevent a large arblfd-
ry contraction Of the currency through
the suggested retirement OF United states
notes, II would be necessary 10 siinultan-
eousiy provide system OF bank note IS
sues 50 guaranteed and regulated that
they could be trusted 10 reach volume
sufficient 10 compensate Tor the WIN
drawals of the United states notes ana
20 provide for such future expansions
or currency as the wants or business
might require The nature or such
bank currency has been so oft discussed
In these columns that II Is not necessary
10 here suggest the needful provisions OF
such a measure.
II is 10 be- hoped that the Administra-
ton may. without further delay. ~
into line with the earnest conVictlons ol
practical financiers as 10 mo absolute
necessity for fiscal and 'baT*lng recon
sfructons 10 any real restoration OF con
flence in investment and commerce. The
House leaders OF sound economic reform
are ready for action. but they hesitate -
assume the responsibility on mla'"'H
measures until backed by the co-opcra-
ton Of the President