Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-12-05


nut when distruat arises either as 70
our ability 10 pay or az TO the value q
tho money With which We intend 20
pay. the foreign capitalist not only
ceases 10 invest. but proceeds TO with
| draw all his money BY dispoeing OF MS
American securities IN order 10 protect
both capital and income against threat
ened depreciation
Government Notes.
Under our present currency system,
no far as II consists Of notes igsued by
the United States government tho vol
um0 OF circulation was Intended 70 DC,
and *, in fact, Interchangeable. II 70 un.
altcrably fixed al n certain amount,
and no matter how great the emfrgen.
cy may be. II can neither be enlarged
nor diminished. The only part OF the
currency possessing In any degree the
| quality of elasticity Is that issued ny
the national banking associations. ana
| II II now generally conceded, l believe,
that IN this particular, at least u has
failed 10 meet the requirements OF the
situation at some Of the most critical
periods In business AFFAIRS Of the ooun-
try. Its failure is ciedltnblc, In my
opinion, to three principal cnusehi
First, TO the largo volume u unltrd
statos currency OF various kinds Kept
constantly outstanding. making the
contraction or expansion OF the com
paratvcly small national bank circuln-
tlon less effective than u would other
wise have been, Secondly, the diiirul-
~ and delay In procuring and 20 come
extent In retiring circulation Thirdly,
aud mainly. the provisions OF the law
which require the deposit OF United
States bonds TO secure circulation ana
restrict the issue " notes 70 80 per cent
~ the par value Of the bonds, with
$500 900 900 In United States notes, trenH-
tIrt fpfaa al fguO ailgar parilfteitfgu and
gold certificates. E0nliea about sGsl ool,-
600 IN gold and silver coins, constantly
outstanding none OF which can De lhw-
fllly retired without the substitution
Of other currency In its place, tho ma
tionnl hnuk notes, which amount TO
only S2OT, 800 600 or about u per sent OF
the whole can not exert a very eject
I've influence upon the volume Of out
standing currency at any time, and
especially ut timca when the large con-
tract.cnB or expansions nre most ncod-
ed. But the greatest difficulties nre en-
cduntered, and the rational banking
system ms now organized ~ least cifect-
I've, when the business OF tho country
dcmnnds quick expansions of the cur
rcncy 30 meet sudden emergencies.
Not sound poIicy.
In addition to existing distractions
TO the prompt Increase and decrease Of
circulation the ninth section Of the
act Of July ~. 1852, which provides for
the extension Q. corporate existence or
national banks, expressly prohlbits
them from retiring their noten to 4
greater amount than sa0OO,OO0 In the
aggregate per month, and provides thnt
no bank which made deposit OF law
ful money IA order TO Withdraw itA clf-
culntiun shall be pcrulttcd TO make
any increase In It's circulation FOR
period OF Nix months thereafter. These
Hall. la Ia
illct Win the dictatrH or sound policy
that they require no comment
In Wow OF the foregoing conAldorn-
lions, aud many others that might be
urged III favor df REORGANIZATION ana
reformation OF our paper currency fyA-
tom have prepared the outlines Of u
which, Ia my opinion, VIII relieve
the government TO an extent from the
burdnna now impoHcd upon II, Hrrurc
within n reasonable time a nafo hnd
elastic national and state bank cur
rcncy ana result ultimately In the pcr-
mancnt retirement uf United states
legal tender nnteA % both cltales,
me ,,i,u
t.,., ..,,,
~, NJ url'l' M lollpWh'
, " Ncpyll Hi' 'tWA igluHinE OF au-
,hol,"lNh ulr 9"p.hl 3l unlt'l states
pumu9 ,tN hVoulNA lol cltVuihtloh'
" icrlnlt national BANK" To Issue
p'l '.h'ulh "l 'nNlI pun up HNu uulln-
paired capital but rupulre each bank
pelore receiving hnlr' 70 urpnalt
guarantee iuhd' conAlntng OF United
htulea lcgnl ielder hotet lncluhlnH
ue9hury notes or leeu, 10 the nmonnt
or 40 per centuln upon the circulating
notes outstanding, 10 be maihtinel at
gu tlmos' anu wh'hcNgf q pi'nk rttir,H
ltb circulation, IN whole or IN part ~
gunlNhle9 luhu ng returned 20 u N
hnluunln lh proportion 10 tue amount ut
notes retired
W k''nln inc pr9vl,ion OF INC law
making sioohhollolN lhulNluunly ll%pl''
ma provide tnht Tue 'loulhVph hn'ch
hhAll coh.hlulp hlHt heh upon an
Wh'lA ~ the hNhN'
90 Impose "a tnN OF ono'hnlt or ! per
,eutuh lrl Whuh' pnNNhle s'ul,'h.
huallS, upnh u1 Nvlhs' nWDunI uI
notes ~ cllyulRuon' 20 uelrhy W. fN-
penHeH "t prlniluN hNte'' ulhelh' super
Vieloh' cnnr'llnl'on oIy
Wl 30 nlueuNl piuN Nsetv 70 ee %,
l'hA l"nonuhauuh VlhN ~ ma w
nuteH ol the .Au'' 1vn",nlnet'"u ~ ne
uniform w uen'Nul nut nlnNa WI lnb
20 rv''eDln '''ell nutu" lN XIV" ulus w" NM
lh'ln n,huo w Nu,r ", t',"t 'p'u' Ky
t.VlStn'g "l W. 'lV l..', w. huNV ~
lnNl,F 70 pv,p",u W. Mtvp W., 49,
,nuE ~ KIM, ,,, VI,
wv w NtNNN ''"N'f''t""l "t'''N ~ = -