The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-09
BANKER cLEws VIEWS.
The Financial Outlook as seen From
Wall Street.


New York. Dec. THE Presidents
message has been, on the whole. favora>
bly, received in Wall street, less. however.
rom its positive side than from its mega
tive. 1t makes no recommendations cal
eulated to disturb confidence; neither
does it offer any encouragement to hope
ful anucipations. By many the Presi-
dents emphatic declarations in favor Of
the retirement of the legal tenders is
viewed as, on the whole. a body Of sound
doctrine, calculated to guide public opin-
ION 10 wholesome conclusions upon the
currency question. But, at the same time,
lheie Is general disappointment that
the President should trust so entirely to
increased issues of national bank notes
10 MI the vacancy in the circulation that
would be caused by his proposed retire
ment of the 500,O00000 of United States
notes and treasury notes. His suggested
reduction of the note tax from l per
cent 10 q per cent. and the increase of
note issue from 80 per cent. of the amount
of deposited bonds TO 100 per cent. is re-
.celVed as change which ought to be
made under any circumstances, and in
dependently of any funding of the treas
ury paper. But ii is not believed that
such change would very materially in
crease the volume of the national bank
circulation, and there is no question about
the entire inadequacy of such increase
to hll the gap caused by the withdrawal
of the legal tenders. Some surprise is
felt at the Presidents silence on the prin-
ciple of issuing bank currency on pledge
of all assets and the duplicate liability
of the stockholders.
The discussion of this form Of note qua
ranty within the last two years has
wrought considerable change Of opinion
in its favor in banking circles and among
intelligent students of this question gem
orally. 1t Is seen that such basis of issue
must be in some degree depended upon
to produce the expansion of bank circula-
ton that would be essential in the event
of the withdrawal of the treasury issues.
The value of the issue privilege would be
so largely increased under such a basis,
and the regulation of the money market
would be SO much easier than it is under
the present inelastic currency, that there
seems to be no reason for doubt that the
retirement OF a large part at least Of the
treasury notes could be compensated by
equal new issues of bank paper. And, If
it should not be deemed prudent TO offer
this basis of issue to the state banks, I'M
der due safeguards. the restriction of this
privilege to the national banks would
bring over many of the state institutions
to the national system and, besides, would
induce the creation of a large number of
new banks under the national law. My
individual Judgment however, is that 1t
would be prudent to provide, at present,
only for the retirement of the notes is
sued under the Act of 1890 leaving the
"greenbacks'' for subsequent treatment.
1t Is dawning upon expert opinion that
the question of note guaranty is practi-
cally the most vital factor in the problem
of currency reconstruction; its import
of the withdrawal of the government cur
rency but also as involving the require
ments of perfectly sound retail money
that would automatically respond to the
wants of business and largely contribute
towards a natural and even regulation
of the market rate of interest. But, from
present indications, there is little to en-
courage the expectation that ony import
ant action on the general currency ques-
tion will be accomplished, If indeed at
tempted, at the present session of con-
UigaUTpgmpntG
between the two houses, and between
congress and the administration, are so
great that men of force and leading are
likely to defer a campaign on this ques-
ton until the achievement Of some real
result becomes a possibility. We take it
therefore that the next few months of
legislation are not likely to prove an in
huential factor bearing upon the invest
ment and speculative interests.