New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-05

while State banks not required by law TO Keep
about 20 per cent. This argues the secretary. sus
tains the position that regulation upon the sub
Continuing, Mr.. Carlisle says: $3.50. ,.o, o.,
crcason of ali bak to- the
prompt redemption OF the notes of failed banks is
to BE 10 & OF ap py pan
bonds and exempt the Government from liability
Government should be exempt ard the entire re-
aponsbllity for the redemption of their own notes
many reasons, | think, will receive the approval
Of the general public and ought not to be opposed
by any special interest.
RESPONSIBILITY ON THE BANKS.
"The requirement that the banks shall pay their
own obligations imposes upon them no greater
hardship than is imposed by law upon every other
business and financial institution In the country.
and the only argument that can be plausibly urged
against It, in the case Of the banks Ia that as the
Government has undertaken through their agency
TO secure sound circulating medium. it should
stances The conclusive answer to this is that the
Government has discharged It's whole duty in the
safeguards will. with honest and competent man,
ssement guarantee the safety of the notes issued
which the proposed plan Is intended to accomplish.
tee fund for the Of it's notes and de-
post Of per cent by all the banks in common
banks together With rst en upon ali the
assets. Individual liability OF stockholders Official
supply deficiencies constitute the effective parts OF
a system which will afford to the noe-holder ample
assurance against loss. and at the same time leave
a liberal margin for profit on their circulation
one beneficial effect OF requiring each bank to
redeem its own notes will be the promotion OF more
careful and conservative management of It's affairs,
hI ySans to large e. ten the nch
Government responsibility for the redemption OF
any part OF the obligations of the banks has a
strong tendency speculative adventures
and careless methods. which would not otherwise
sides. inconsistent with the policy that the banking
business like all others should be conducted upon the
credit and at the risk OF the parties most directly
interested in It's success
TO GET THE SILVER TO CIRCULATE
'In order TO provide wider field for the active
circulation OF our silver coins and certificates which
now constitute about one-iifth Of the entire volume
OF currency. and protect the Treasury as far
possible against the accumulation Of certificates
returned in payment Of customs and other duties 10
the Government II Is proposed that no National
bank note Of less denomination than SO shall be
issued The bank notes under that denomination
now outstanding amount t. s6s25ssis and there are
also In circulation i.ilASl IN old inited states
s6Sis3S5S in Treasury notes OF 1890 and S3l.OG5i7
in silver certificates making In the aggregate Sls
than the entire issue OF the silver certificates
Attention was called to this subject in my last
that 1t would be good policy TO retire these small
notes and replace them with larger ones Win IKE
character Such course would not subject the peo-
pie any inconvenience In the transaction of their
ordinary business and would keep permanently out,
standing much larger amount Of silver coin ana
certificates than has heretofore been done thus re-
iIeving the Treasury 10 considerable extent from
one OF the difficulties which frequently emharrass
It's operations. The large notes would be used gen
orally in conducting the more important transac-
lions OF the people and In the payment OF duties
the Government. SO that. while no denomination
private interests would be alike subseryed These
change. could be made gradually ms the various
kinds Of notes received into the Treasury ana
with very little. II any. additiona! expense
SILVER IN OTHER COUNTRIES.
The fact that our circulating medium Is COM
posed OF SO many different kinds OF currency would
seem TO require the enactment OF such legislation
as will provide place In which each can be safely
and conveniently used. and as this can be done
without, discrimination against any OF them. Il
ought not TO be omitted from any plan which
proposes permanent changes IN the system me
pears 10 have enabled them to avoid the difficulties
encountered here In the attempt TO Keep the less
ton. without arrangement Of the currency or dis
iurbance of the public nnance. Great Britain, ,in
NOME Of which is fSl legal tender aa5ho5.es the
OF 0s e f Tancs Hss@ ana
With .g7sCo,cco in gold and tis.9pco In legal ten
der silver issue srsn no "o or 81 Holland With ;g;
COZ 600 in gold and So 10000 in legal tender silver.
SO o5: spai, with ,io.cOco in gold and .?o.coep
in legal tender silver issues nothing below ,Tenay
way with s2scoocO in gold and tl?l@e3 IN Unite, yea
legal tender % sV s5d HRnssry With ,so
600 in gold and ssl0occ In legal tender silver.
Is gradually retiring all notes under ten Gr0"s or
based exclusively upon silver. We have. and
Consequently ali payments made in sums less than
me denominations OF notes mentioned. must be
made "a actual coin. which would not be the case
Compiled With oar stock Of fu legal tender all
yer coins Is larger in proportion to me stock o,
Holland. Belgium and Spain; and yet We continue
10 obstruct the circulation by the issue OF small
United States notes and bank notes which serve
the purposes OF the people In their daily transac-
lions no better than the coins or certificates based
upon them
JUDGING FROM EXPERIENCE.
'The experience OF the country under tho act OF
February g. 1873 which limited silver certificates
to denominations OF $40 and over. and under the act
OF August T. 1856 which removed that restriction.
justifes the belief that the change now proposed
coins and certificates. and that they would be
much less likely to return TO and remain ~ me
passage OF the act last referred to- permitting the
issue OF silver certificates IN denomna'i2ns OF one;
two and nve dollars. standard silver , dollars Is, n no..
represented by certificates had aecumuiated III ne
Treasury TO the amount o, $1,000 oniy sS s M
Within four months after that date aithough ",
usual rate amount q res silver ned n, II 5hI
Treasury reduced 10 81 2ss2ss ana !, ono,,,ii
certificates. until It became so reduced that lur-
Their issues OF certificates had to be i,ihi.n prac-
ideally to the current coDag" OF the uoihrs-
SOME FREE.TRADE POLITICS.
cooro,arv Carlisle th.n takes UP the question OF
Free-Trade and Protection urging reduction Oh
taxation to the lowest point compatible with Inc
collection OF a revenue sufficient to MAINTAIN an
efficient public service" Although the recent 'es''
Iation did not accomplish all that was expec,el or
desired II inauzuratcd policy which IL Is hoIcu
and bceved will ultimately result In great I'M
movement In our Industrial condition ana an en-
targom.nt az our internal and international com
merce In the prosecution Of this policy 10 ,tli
p,na IN other subjects should be permitted 10
diminish our confidence In It's ilnaI success or OF
,naaLen our determination to maintain con
ssient advocacy OF its claims TO the iavoraplc con-
sderatiOn OF the people. on the cohtIaIy IT,
a sh nId stimulate Increased effort and every
Vehement hereafter made should be step lot,
ward in the direction OF freer trace ana "'o'o
VAL iistributIon OF the rewards OF INDUSTRY =,
et n treatng OF the operations OF the treasury III
datau the Secretary gives the receipts ana e~-