The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-15
A WAY OUT.

Mr. William II. Cornwall, president of
the New York State Bankers Associa-
ton, has bad hearing before the House
Committee on Banking and Currency.
The New York banker is reported as say
ing:
The greenback and treasury notes should be
redeemed, then Cancelled. The real business of
she Government as regards money is TO stamp
upon gold and silver their fneness and weight.
A government has no right TO issue money with
nothing back of IL and Il make IL legal tender
to create a currency and by an act OF law force
The people TO take It's full value without regard
TO intrinsic worth. All such Issues up TO 10.
day have ended IN trouble. The greenoack
and treasury note are OF this character They
are the Governments note to the extent OF
100000, 900, payable on demand and In gold.
They have caused trouble enough already.
They are constant menace to the gold re-
serve. They should be paid up.
Mr.. Cornwall knows that the Govern
ment has never issued demand note
payable in gold. The original issue of
greenbacks was made when the country
was on bimetaIlc basis and was payable
in coin of either metal. The treasury
notes issued under the Sherman act of
1890 are also payable in coin. 1t is entirely
W4bUiu buo pOW0l VI Tic L,
therefore, to protect its gold by partial re-
dempton of either kind oil currency in
silver. AS silver is a legal tender. and is
maintained at Its gold valuation, there
would be no departure from the gold
standard in making such use of silver. If
that were done all the Government stores
Of coin and bullion of either metal would
be behind the $500. 100000 of currency
which Mr.. Cornwall considers so danger
Gus. France exercises this right of re-
demption in silver every day. and there is
no premium on gold In that country.
The proposition that a government has
no right to issue money with nothing
back OF it is Irrelevant. All established
governments have something back of them.
Thev have the power of taxation, and
thereby the power to collect the coin with
which to redeem their issue of currency.
A bank sometimes issues currency with
nothing back Of it, but a government
never. What government has to avoid is
TO issue currency In excess OF its ability t.
redeem. The $500, 600. 600 which the United
States keeps in circulation. on the strength
of general promise to redeem it when
presented, is not excessive in view of its
resources. 1t could convert the entire
amount into time bond et the lowest rate
of current interest Ii theirs we're any reason
why it should do so. But. in the absence
of such reason, why not let the Govern
ment have the profit of this circulation :?
Why should this profit be handed over to
private parties? Are the assets OF a bank
better security for currency than the assets
of the Government? VIII the holder of a
promise TO pay signed by the proper
officials of the Treasury Department feel
less certain of his coin than the holder of
bank note? The truth is this war against
the United States currency is scare 1t
is true that this currency can be used to
draw gold from the treasury, but an an
nouncement that the treasury would, at
its discretion. make partial redemption in
silver would put stop to that process.