Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-01-01
An Elastic currsnsy-Asain.

Hon. u. 9. Hall. Of Missouri. 10 one
OF the ablest hnanciers In the House OF
Representatives. He has the facts and
and can stand upon the floor Of the
House and answer every question put to
him relative to the currency. or to banks.
or to any kindred subject. On the 18th
instant he made speech. in which he
spoke Of the Grcenbackers Of 1873 and an
elastic currency. az follows:
at was my fortune to mix with that
body OF people q great deal-to be in
their councils. State and national; and
/ know that the one great underlying
element OF truth that there was In that
wild vagary Of the sub-treasury was
that we had IN the United States nom
elastic currency that came into contact
with an elastic demand for that currency;
and this was a. blind effort for an
elastic currency. I will give an illustra-
ton Of the evils OF a non-elastic cur
rency: Suppose our secretaries OF the
Treasury are right. and that there Is IN
existence In these United States to-day
81 COO, COO 900 Of money. which Is sufficient
to handle the ordinary business for nine
months In the year. During the months
OF September October. and November In
every year there Is thrown upon the
markets Of the United States $7J0,0 90
worth Of farm products. The immensely
increased demand for money which Is
thus created comes In contact with an
infiexible supply OF money. What Is the
result? An excessively high rate OF In
terest In these sections. and decrease In
the price Of these products"
Mr. Hall calls for an elastic currency
whenever he gets an opportunity. Here
is one Of his paragraphs:
There is no elasticity in this present
currency. II is impracticable that there
should be any elasticity In the currency
under the provisions Of the national-bank-
ing law, as II exists in the United states
to-day, for the very reason that they
are required 70 deposit United States
per cent bonds Of the value Of SIS at
the present rate, In order to get $50 or
currency. This og-in-the-manger eur
rency system has cost the people OF TINS
country untold wealth and prosperity.
The fault rests with the system; no sys-
tenn can provide for an elastic currency
that bases its issue upon bonds or any
other fixed and inlexible basis"
This last remark seems to express the
opinion on the point touched OF all the
financial experts in the land.
Mr.. Richardson, Of Michigan. asked
Mr.. Hall II elasticity was as necessary
as adequacy? Mr.. Hall replied:
IT will say TO the gentleman that an
adequacy Of currency embodies the eie-
ment OF elasticity; that Is. that the cur
rency Is adequate for any occasion that
may arise. When the currency Is re-
dundant II will retire. by the laws OF
n tho nlare of It's
issue. When there Is scarcity OF cur
rency the currency increases In order
to meet the business demand. That would
be an adequate currency"
Mr.. Hall said that In granting the privi-
leges Of currency-issuing circulating
notes-to any great banking institution
in the United States. we grant valuable
franchise. Yes, especially II we return
to the old State-bank system. and allow
each bank to issue three dollars In notes
for every dollar Of silver and gold It has
IN its vaults. That was valuable privi-
lege. indeed. Hard times come upon the
county. The banks cannot redeem their
notes in coin. SO they suspend specie
payments. Then each bank prints $500, 900 or
more Of its own notes and lends the money
(or currency to the people. No wonder
there is demand for State banks. But IL
the country needs more circulating notes,
and each bank is to draw interest upon
$500 600 or more Of its own notes, then
the people. Mr.. Hall seems to think.
ought to have this interest or some Of II
added to their stores Of currency or
money.
Let us have safety and elasticity, as
we'll as protection to depositors, and we
shall have the best banking system in
the world.
Mr.. Walker, Of Massachusetts,, another
financial expert. holds, It would seem. the
same opinion as Mr.. Hall on the subject
Of allowing the people to share in the
profits on the paper-money issues. In a
speech made in the House Of Representa-
tives last week Mr.. Walker said:
"The Carlisle bill in no way recognizes
the right Of the people to share in the
profits on the paper money issued 20 the
people. The Walker bill is drawn on that
principle. l have discussed that question
heretofore. If the people want to share in
the profits on the circulation, and have
1t cost them a little more. and II they
think the currency is a little safer for
that reason, they have a right to do so,
and do do so under the operation OF my
BILL 1t recognizes their rights In its
text, while the Carlisle bill does not"
We don't exactly know how the people
are to be enabled to share in the profits
Of note-issu!ng; but such men as Mr..
Hall and Mr.. Walker and Secretary Car
Isle may devise a scheme that would be
pOpular