The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-07
NJ. Swanson Approves Hr CarllSlt's Plan
and Explains Its Advantages.
Mr.. BOOKER POSTMASTER At OLD POINT
The President Yesterday Appointed Him
to tho Plses-Itoms In the ApproPrfa-
.tieB for FortiHoation's.
TINES BUREAU. RAPLEY BUILDIso.
WASHINGTON, December 6. 1894. !


looking TO the repeal OF the tax on state
banks. The financial question VIII not
down, and the greatest interest III pIoSpeC-
tive legislation now centres In the dll-
tude of he House toward the suggestions
of the President.
Mr.. Swanson has given a great amount
of time and study to the situation, ana
when requested this morning gave the
following view of the subject:
Il favor the adop.ion OF the plan OF
currency as proposed by the Secretary
Of the Treasury. 1t has much In IL 10
commend itself, and it eliminates many
of the evils which exist in the present
system. 1t destroys the most objection
able features OF the national bank sys-
TEN. Ii repeals that feature Of the ma
uonal bank system which requires a
deposit OF United States bonds for the
issuance of currency, and permits the
banks to issue currency TO the extent OF
70 per cent. Of their paid-up ana unlnl-
paired capital. This is a great Improve
ment. Under the present system a Dank
would pay about $4,000 for 100000 worth
of United States bonds, deposit them
with the Treasurer. who would issue
$50 900 OF currency, retain per cent, ana
give the bank about $4,000 IN currency.
Thus, after procuring national bank cur
rency from the Government, the bank
had $4,000 less of money to accommodate
its customers than before. This system
permitting banking on capital, VIII enaoie
the banks TO increase their supply OF cur
rencv for the accommodation of their
customers. 1t will produce safe, sound
expansion Of the currency. The surplus
and capital of national banks the lst or
July, 1898, amounted 10 1929, 6Z9, ,94y.59. Un-
der the system these banks could issue
currency to the extent of $63l ,222, 1871
THU DEPOSIT RTQUIREr.
ITO obtain this there would have TO be
deposited 30 per cent OF treasury notes
in the Treasury, amounting to S-oJlSo,-
1886 Thus there could be, with the
present capital Of national banks, an
increase OF currency in circulation 10 the
amount of siSS, ,0j5, 723.55. The system also
provides for the issuance of currency by
State banks under proper safeguards.
The capital and su. plus OF State banks
the lst of July, lS93 amounted to No2,-
2l3527. These banks could issue currency
to the extent of SJ6i, ,246. There would
have to be deposited to secure these
$l69 24S, ,O73S0 of Treasury notes in the
Treasury. Thus State banks, with their
present capital, could Increase the cur
rcncy in circulation to the amount OF
1892 173. With the present capital OF
state and national barks the currency
could be increased IN circulation TO the
amount Of $SS2 957 ,S96, or about fourteen
dollars per capita. II commerce ana
business demanded more currency il
could be increased by more capital going
into banks, and the demand and need
could be satisfied. The system limits the
expansion of currency by requiring de-
post Of Treasury notes to the extent of
80 per cent Of the notes issued The
| Treasury notes amount TO about S3D,UO,-
OO0 When all OF these are deposited
there could be issued about $l,6J5,UOrD
of currency.
TIKI INCREASE OF CIRCULATION.
''Thus. if needed by commerce and busi-
| ness the currency in circulation could
reach an expansion of about N,lb6,WJ,VV'
or about eighteen dollars per capita. This
! would give immense stimulation 10 busl-
ness and result in great benefits.
The currency issued, both by States and
national banks, will be perfectly safe
and good and uniform. The system pro-
yides safeguards and securities superior
to those Of the present national bank
system.
'''The system will prevent the congestion
of the currency in large commercial CEN
tres. il will decentralZe our financial
system. 1t will provide in every village
and city a local currency, issued and
controlled at home.
Another great advantage: 1t Will de-
stroy the necessity for the sale OF any
more bonds to protect the gold reserve.
| am opposed 10 the sale of bonds I'm
der the system the Treasury notes which
deplete the Treasury of gold Will be de-
posted in the Treasury as a basis for the
| issuance OF the proposed currency. Thus
| there will be outstanding no notes TO
make raids upon the Treasury for gold.
BY using these coin notes as security for
the issuance of the currency IL will rem
der it difficult, if not impossible, in the
| future to cancel ana retire these, TO the
great contraction Of the currency, as ad-
| vocated by many.
WHAT THE SYSTEM BEQUIRFs
There is no foundation for the criti-
| cism that under this system the Govern
| ment loans its credit TO the banks without
| profit The system requires the banks to
redeem their own notes. The Government
only takes charge Of the assets OF the
| banks when they fail TO discharge their
duty and redeem their notes, and applies
| the assets, which are far in excess of the
| notes, to the redemption OF the notes.
| The Government can lose nothing. The
system gives a safe sound, elastic cur
| rency, increasing and decreasing, accord
| ing 10 he wants of commerce and bust
ness.
THE party should unite and enact the
| system into law We have had enough
| dssensions, ordinations and recrimina-
tions In the party IL Is time for compro-
mise and union. This is a vast improve
ment on the present system. We must
! adopt this at the present session or get
| nothing. While il is not all We want, il
| is far better to take this than TO leave
| the present system in existence or ac-
| cept a settlement of this question in the
| next Congress al the hands of the Re
publican party. The Democracy should
not let this opportunity pass without
availing itself of it,"
POSTMASTER AT OLD POINT.
The President to-day appointed Hon.
| George Booker TO be postmaster at Old
| Point, Va. Mr.. Booker was the postmas-
| ter under the former administration Of
| Mr.. Cleveland. and his conduct of the
| office was such that the entire army
| patrons of the office requested his reap
| pointment.
Congressman Tyler, having several ap-
| pllcants for the office. declined 10 decide
| between the candidates, and the Con-
gressional Committee, with Senators DAN
iel and Hunton, endorsed Mr.. Booker.
Ii was thought that Governor O'Ferrall
would also endorse Mr.. Booker, but the
contest being waged by the other candi-
dates. the Governor declined TO enter the
fight. and remained neutral friendly to
all and a supporter of nobody. The ap-
pointment of Mr. Booker would have been
made weeks ago, but for the opposition
of a few personally aggrieved gentlemen
FIR )m Hampton who sought 10 defeat hip''
Hon. John Tabb was the leading chan
pion OF Mr.. Jones, the other candlusse,
while the other gentlemen of the opposins