New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-10-12

presented TO this convention, and for which they
deserve the thanks Of the Nation Is cOmpIet t.
answer. With the Republicans OF California and
tn Democrats Of ohio denandins free coinage &c, OF
silver at the ratio of sixteen to one, ana Eafyni
SHADES Of the same sentiment hnaling Pup'c an an
Ieratve mat this convention OF bankers loiI.i.d.e
the principles upon which they believe the currency
u tne country sHould De iouilu nae, i, certificates
representing actual coin deposit We have green
deposit. We have silver warehouse receipts ISSUED
under the act OF July H. 1870. IN Use a. money ana
Bank Of England notes. which with the exception
Of f200co000 represent actual gold on deposit silver
in vaults Of the Treasury. and which notwithstand
ing II was the dollar OF our daddes could I rot
grcenback Is a non-interest- bearing forced loan OF
doubtful consiutionality, ana could only 3e her
the acts OF 1880 sherman la~-were given in pay,
want. and Tor no Other purpose than to pacate
the silver interests and furnish note to circulae
of February q. 1879 because at time Of issue
they represented gold dollars worth of silver The
Bland dollar never did
COST OF SILVER LEGISLATION.
In response to this demand for more money. which
supplied through silver legislation. we have
coined since 1873 about i25cooeo silver dollars.
which have forced into circulation. either ii
rectiy or through their paper representatioes re-
following table is instructive:
February Is iS7S.............. s27el6679s
Total cost Of silver bullion used in such
seignioragc or apparent profit ....... oeSs5;i
aad at ' Pr1sc4i marx mnrfc' i " S l22os
vanc at present. mark market % " I22o 9a
cost ..'. .' I55.elo
Market value Of such bullion at present .-.....-
Depreciation in value OF sarne........... iNo> ed5
From these statistics Il appears that in addition
to me morc serious dlmase ~ s.hfru n.slll'sS i'
0SH in 70 ya iI ~ ,o 10 ar That youni sum
represents the price Of our homage To- silver.
or all ine-worn fdllacles Their" is none more ven
cradle or vulnerable than the omniprcsent attempt
achemists OF old who sought t. turn Other metals
their efforts would make gold no NOR" valuah."
than the baser metals thus subject TO their ppw'r
The sense Of commercial honor from cItz.ns up -
the Government. which fp.nlis the reputation ~
ones JUS obligations. is The distinguishing feature
silver at the ratio OF sixteen silver dollars t. one
gold dollar Of present weight ana hnen"-s means 4
~ the fiat OF the Government t. pass for j" cents
Pro1t-the difference between tn cost OF N" silver
bullion bullion IN open market and the '',s
y51s 'n horeat S4ey na i4i0 "" TIA 5ncd
Of inavdgiais ana not t. thf G, ,, sl
81 silver bullion to the mint and coinage free. ob
tain silver dollars win which to pay $40 worth ~
per cent OF existing Indebtedness The sagac'ous
Instinct OF trade would correct such wrong a. e. n
df vnI',rs I, means thar Inc 500 90 Of gold now
to bc money. would become commodity simply.
whether coined uncoinci. 1t means a contrac-
ton OF our currency equal TO the amour; II gold
which ceased 10 circulate az money II means
general unsettllng OF values. the iemoralz ~
business great injustice 10 present creditors Just
what the effect would be upon business interests or
each business t. have one half % its bills rer"v-
able virtually repudiatel Is a matter - specu!a-
,on. and trust the good sense and honesty ~ tn"
country VIII forever leave il In the realms o; sccu-
la,ion
GOVERNMENT CURRENCY INELASTIC
Both the BLAND and the sherman law injected
into circulation fixed amount o. money monthly.
without regard to the wants OF commerce However
great the demands OF trade. they could not tn
crease such amount one Jot or little And since
Incnt o. debt or IN exchange for va.uc. this criu
cism OF absolute want OF olnsh.ity must apply
r. ~, rror monnv ,Inc,in5 ~ he (;oycrnm"nt is
power coin money and reEulai" the value
ihcrcof a rover nl,hhelI rom tn states and
there / believe It's functions % creating money
proncr restrictions should be- issued bv M. banks
Thus. and thus only elastic currency Doe
obtained. our present bank not" currency pos
scsscs an tho good auaIitlo. cv-cYt elasticity SO
money secured hy sio. IS or bonds can possess iaf
quality. Now. r order 70 issue tl'r circulation.
a r@icnJ,tion ma 90 $40" Ana. instead - IA
crcasing IT, means ~ helping 49, customers ana
the public by the transaction. r. locks n.y. $3.50
and dimnshcs It's power TO help the public hy that
All propositions FOR bond security contemplate
maintaining the value 90 such a. Least 10 per cont
81 The bank taking oui such circulation 10 aid t'"
public IL by such percentage diminished. cur
BANKS must nave Power mus %" Great" H"n'5 IN
no other way can currency b" elastic. In no other
IN" very nature 81 thing the Government cannot
give such currency. IN" banks can only win
is 10 more money In M" country m lNi lhan there
was In 1896 Now money CLOGS tho vaults "f our
annum Than the premiums offered one year aro
for a single service and which failed TO ur" II
currency may prove Inadequate In panic sim. |
had the Canadian Law obtained In this country
visions, have added over N"e"co to thc cur
currency famine would hardly have been possible
An elastic currency is needed not alon" IN ;iin" /
81 The cotton crot calls Tor an .xtraor
mary amount Of money In tn" cotton belt Currency |
Currency in that section is expanding Under the |
system proposed by the Baltimore bankers the !
banks in the cotton regions could largely supply IT,
Of expressing money from money centres Tho |
cotton crop having been moved. the demand for |
money lessons and by the inexorabe law Of supply
and demand the currency flows back to the money !
centres.
The business Of modern banking Is done with |
other peoples money, the want Of one section Of |
the country or Of the deposition being supplied from
the surplus OF another and this expansion and CON
traction are going on all the time in different sec
ton Of the country. Tn" proposed law outlined 10y |
the bankers OF Baltimore follows closely IN" Cana
dian law. The Canadian law cmbodics many good |
features from The National Bank act and from u" |
British and Scottish currency laws. II provides for
the issuing Of currency up to par Of paiin. unim- |
paired capital The Baltimore plan allows only ~ |
cent ana In an emergency - per cent guardnte"
fund contributed and maintained by the banks. |
The Government assumes no responsibility beyond |
the application Of this guarantee fund There has !
been no loss 20 hlll-hOd"rs and the Law has given
satisfaction. Canada has been peculiarly free from
panics for many years. and has had no currency |
famine Thus the principles Of the bill before
are approved by actual experience.
NATIONAL BANK STATISTICS
Now let examine our own experience since the
creation Of the National banking system. in
lcbtcd 20 Controller Eckcls for the following
leurcs:
Average circulation OF National banks
= a lLIul cIrcIIla ~ IL falnl NJ