New-York tribune., 1894-06-11
lack Of currency in the banks Of the West as


this question intimates.
In travelling from New-York City TO the Pacific
Coast and passing entirely across the continent.
l have not yet visited a single place where the
banks have not surplus of money. There Is
a surplus OF money in the banks go where one
will. The banks Of the entire United States are
not loaning their money as they would IKE 10
do. 1t lies idly in their vaults everywhere.
The reason why SO much money Is lying Idle
is easy to state. 1t is because business Is pros
trated. The people who usually borrow large
amount of money and 1t in their everyday
transactions are doing little business and bor-
rowing little money. 1t is business an activity
in trading. manufacturing and mining which
makes money active and takes it out or the
banks. 1t is lack Of business which causes
money to accumulate in the banks. not only IN
the cities Of the East. but also in the cities OF
the West. Undoubtedly. a larger percentage
than usual OF this surplus money Is founu ih
the banks Of the East. This occurs simply De-
cause Eastern bankers ARE In the habit generally
of paying interest to their Western correspond
ens on the balance left with them. The banks
Of the West not being able 10 use their funds
in ordinary business transactions send IL to the
East and leave it on deposit with the Eastern
banks. IT, order to draw the small rate or inter-
est which Is allowed them on such deposits
There is in the country a general misunder-
standing as to the money on deposit in the banks
all over the United States That money is really
held by such banks In trust for their depostors.
1t Goes not belong 70 the banks 1t belongs
largely to the people. the deposiiois, scattered
all over the United States.
The general talk which hear among the
Popuists to-day that what we lack in the nited
States /, currency. is clearly not true There Is
an abundance Of currency piled up and not IN
use all over the United States. 1t is an abnnd-
ance OF business which makes money active
Surely there is no better sign Of business ACTIVITY
than 10 have the money OF the country con-
stantly drawn out of the banks to supply the
needs Of business There is more money In ex-
istence more money per capita outside the Gov
ernment vaults. to-day than has ever been
known at any previous time in the United States.
4.-In England, paper money is not issued upon
silver at all as a basis Of circulation. The Bank
Of England and its branches issue paper money,
based on the debt which the Government of
Great Britain owes the bank ana upon gold de-
nosited With the Government and on nothing
else.
Behind every bank bill there must either be
what is equivalent in this country 10 Govern
ment bond or gold TO the full amount Of the
bin. All paper money in England is redeemed
In gold on demand.
5.-The Treasury notes issued by the United
States for the purchase of silver under the SheF-
man act are one Of the causes when make II
difficult for the Secretary of the Treasury 10
keep the gold reserve in the Treasury OF the
United States They arc not an especial menace
to the Government any more than ;he green
backs or the enormous amount Of silver certih-
Gates all Of which our Governmen, is at present
managing to keep at par with gold.
Caa 80
ing attacked by designing men here in the United
States in order to compel bond issues Is a myth
Who are they who would do this? Certainly
not the practical business mer. They carry on
the great bulk Of banking in this country. and
are the most interested OF airy people IN having
all our money kept al par with gold. They are
the last men IN the world who will attempt 10
iniure the credit of this Nation or % give the
Government trouble to its financial manage
men,.
The idea that the capitalists Of tie country In
general are anxious to nave more bonds issued
is nonsense. Nothing would please these
better than to have the Treasury 50 managed as
to b. able to meet al its obligations from actual
receipts They prefer that the Government should
&c, out OF debt not into debt.
DO the banks want more bonds? II IS fact
that the banks did not desire a dollar Of the
bonds recently issued 10 relinqush the gold re-
serve In the Treasury. They finally took them,
however. al the earnest solicitation Of Secretary
Carlisle. In order 70 the credit ~ the Treas
ury and the Nation. 1t is possible that the saw
ines banks Of the country which pay Interest 10
their deposltjrs would be glad Of more bonds 80
as 70 have A sure investment for the money OF
their depositors and so to be able . pay IN
terest on deposits; but they are doing absolutely
nothing 10 compel the Government t. issue bonds.
There was time when speculation IN gold was
rife when designing men, spectators. would
have been willing TO dcpete the gold reserve 50
as 10 send gold to premium and to make money
by speculation in the metal. II any such opera
tOns are now ON foot. they are not known -