The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-21
THE NEW YORK sUN VERY MUCH T..

The New York sun Is very giraffe,
,bouoh u ia generally accurate IN all cN-
co., o,,,,,o,e Hut its issue OF Wednes-
day contains leadins euitorl"i' 'o"'''
loaded. and with all the ulihih'hss Hc'e'
sary for converting IL into fediiy scare
.rticro " which is of the base more than
ordinarily falls TO the suns lot. II AT
,,ues that the Carlisle currency bii' con-
,or,n,atcs that the Government may Wheh
II chooses use the 90 per cent. oil leHdi
tcnders which the banks are 10 deposit
for IT'S own uses; that no gold rcdeiho-
lion fund for bank-notes Is pr0Nncd ior
and therefore that the only effect OF inc
hill Will be to add SE0,0V,T0 OF paper
money to the $l.lOyOJ0.VOO now resting
upon the small and steadily dwindiins
fund of gold in the Treasury" and which
II saws Will so initiate the currency as 10
bring on a suspension OF gold payments.
We have not often known the sun 10
get so entirely out as IL has mere. 1he
90 per cent. in legal tenders when the
banks are TO deposit is money belonging
TO the banks, and the GOV ernment can
not use them for it's purposes unless IL
commits larceny. We may therefore lay
,his suggestion wholly out of the case
Instead then. OF $i5O,OJJ.OO OF paper
money being added to X,lW.0D,C0 oil paper
money now existing, the case VIII Stahu
thus: If the banks take up the whole Oh
the legal tenders they Will reduce the
prcsent paper money that much. or $780,
600 90. and they will add to the paper
currency as much as those SJOO,o0,Wo au-
thorize But, in that case, there VIII
be no further strain upon the Govern
nent's gold fund. II will probably con-
tinue TO pay interest upon its bonds held
abroad in gold. but there VIII be holhlhS
else that can call on II foP gold' II the
legal tender notes are retired by the
banks, all of its gold obligations VIII DC
withdrawn except those bonds, interest
on which it pays in sold.
Further, il will not be for the Govern
ment to provide gold fund against the
notes the banks issue. The banks VIII
have TO redeem those notes themselves.
1t will be for them TO provide the coin
necessary to redeem them or go to pro-
test.
we are not in love with the Carlisle BILL
but our lack OF affection for II rests
upon grounds other than those advanced
by the Sun. We think it outrageous that
the Government should require the banks
10 lock up % - per cent. OF their capt.
tai in dead. non-interest-bearing notes. 1t
is also most unreasonable that 1t should
require one bank 10 become the guar
antor of another's notes. We fear these
two features IN Mr.. Carlisle's bill Will
render II nugatory and OF no effect, IL
il becomes a law. we fear the banks
will simply refuse 70 take out currency
under its provisions. This fear is based
upon actual interviews we have had with
bank presidents.
The bill which ought TO be passed In
the present condition of affairs is one
providing for an issue Of Government
bonds bearing - or per cent. interest,
to be paid for with the Government =
legal tender notes. Take in all of these
with these bonds, so as TO end the drain
on the Treasury for gold. Make these
bonds then basis for currency, up to
their face value. for either national or
state banks. and repeal the tax on the
circulation of state banks. Such a bill
as this will end all currency troubles in
the United States for the next twenty
i've or thirty years. the solitary Objec-
ton that can be made to this by those
who are opposed to The Times idea that
banking should be made absolutely free.
Is the suggestion that the POpulstc lead
ers of the Democratic party are opposed
TO the Government issuing bonds. But
even they should not carry their hide
bound adherence to this idea the length
OF refusing to allow the Government TO
issue its bonds when a real necessity for
ii exists. A real necessity for it does
exist now. and the interest on the 500
100000 of bonds necessary TO take up the
legal tender demand notes is the utmost
trifie. compared to the disorder and con-
fusion which those notes create in all
our finances while they remain in circula-
ton.