New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-23
4 BiNhING CIRRENCl.

The 3ss,,mptOn OF superior wisdom by those
who advocate retirement of grecnhacks Is n little
louehoblc When THE ST. Paul Pioneer Press
observes that mountains Of ignorance reach 10
,he TON OF The Tribune Building" one Is tempt
ed to inouirc what sense and sanity have been
manifested bv the Secretary OF the Treasury or
the President in financial matters: During more
than century there has been no other President
who has managed in time of peace 10 run tue
Government so much into debt as has iresidehi
Cleveland Secretary Carlsles letter OF APRIL
1893. suggesting redemption or treasury ho''s
in gold was his first noticeable act as Secre-
iary. and procipitatcd the panic OF that year
81. Paul might wisely refuse TO take lessons III
finance from snch teachers.
The policy which most Of the National banks
advocate is not necessarily the concentration OF
all human wisdom because Ii promises 'heih II
monopoly of note circulation Many years vi
earnest and sincere advocacy OF the Na'""'i
banking system. and constant defencr OF "
against the assaults of President Cleveland anu
others who want unrestricted issues by Sta'e
banks. which Is IN reality the end toward when
MANY of the National bankers are pushing gives
The Tribune some warrant for saying that II y
Intensely unpopular by demanding for II mo-
nopoly Of note ISSUES. The complaints Oh Hat
money people are harmless now. when IL Is easii!
shown that the power of bankers To CONTRACT or
expand the small proportion OF the circulation
which they control has no real Influence on inc
aggregate volume Of money. because other paris
of it may readily Increase or decrease iinch
more But II Tho entire paper circulation WERE
subject TO the control Of moncy-lend'rs the WIS
dom Of The Pioneer Press" might not be- sum
clent To answer such complaints
Secretary Carlisle faces the loglcal outcome oI
his own theory when he proposes that redrlnp'
ton of banknotcs should be- left 10 the banks
themselves II must bt. II the Government Il
+, retire It's lccalendcr notes. for the silver
uotes could not he employed for that purpose
no, b.lnc legal tenders. AMI would in practical
effect have, To he retired also If grecnbacks We're
h,.tu,.. Government could not otherwise carry
on, the Act or 1870 and mrniaIn the purity of
gold ana silver notes. With plenty of banks ana
rl,niy Of branches ana something like 500
Uop trn notes In circulation red'cinaDle Only ny
the banks themselves over their own counters
we should require more gold than there Is now
IN The country FOR banking purposes only As
an alarm NJ any time. such a. The unwarranted
fuoishncs> in lending has Just now caused III
Chicago. would in that condition produce appre-
hcnsion aud withdrawal OF gold for notes III
other cities. 1t does not seem that the system
would be either ~ safe or rs economical "a tlat
which now exists. with banknOtes absolutely
safe and free from di>iru>t because the Treas
ury rclcems them all
still the superior wisdom of bankers organs in
sis,s that the volume of circulation would some
how h. automatically regulated by the volume
OF business II exclusively controlled by banks.
II hnppens that this bit of wisdom Is contradict
ed hv All experience. whether in this country
or In other countries. No intelligent man needs
to he told how excessive issues of circulation by
banks. and excessive contraction of circulation
by banks have caused disaster in other coun-
tries. and IL this country before the War. II Is
an assumption absolutely without warrant or
support that all banks in all states would he
Chicago. for instance When bankers are en-
gagged in trying to make money by desperate
spcculation rs not long ago In cotton NJ New
Orleans. their circulation would he regulated.
not by the needs OF business. but by the nccessi-
ties Of their gambling operations. And when
the rccklcssness of a few banks would aifect the
credit OF ALL as IL does not now nothing less thah
really superior wisdom could contrlve restraints
which would make the system safer and better
than that we now have.
"
II does not look as II we were going 10 have
green Christmas in this part Of the country