The San Francisco call., 1896-11-19
CURRENCY REFORM.

The speeches made at the banquet of
the New York Cham ber of Commerce and
the action OF the Indianapolis Board of
Trade calling for National convention OF
commercial bodies 10 consider our none
tary problems make it evident that one
OF the issues which will be forced upon the
attention of the next Congress will be that
of reforming our system of currency.
The new issue will differ from that
which was appealed to the people in the
last campaign, inasmuch as it will affect
paper money rather than coin. The peo-
ple decided at the late election in favor of
bmetallism, and expressed resolution to
maintain the gold standard until an inter-
national agreement could be made for the
free coinage of silver. We have now to go
forward TO the further question of what
shall be done concerning the paper money
of the country.
There Will be many plans suggested for
solving the problem which this issue pre-
sents. All OF these, however, may be
broadly divided into two classes. On the
one side will be those who favor some
means of main aiming green backs, and on
the other will be those who desire to retire
all forms of treasury notes and deliver our
paper money over 10 the management of
banks under National control.
1t is too early to speculate at this time
concerning the forms which either of these
parties will propose for the solution of :he
problem. On one side it Will be con.
tended that as certain amount of cur
rency is necessary for the transaction of
business it is the duty of the Government
to provide it. On the other side it will be
claimed that an money represents business
1t should have an elasticity equal to that
OF trade, and consequently the paper
money OF the country should be issued
| solely by banks; since, as the Government
| is not engaged in business, it could not
issue money which would automatically
expand or contract as the necessity of
business required.
While 1t is not possible at this time to
| forecast the future, it seems certain that
the Republican party will maintain the
greenback system, augmented by some
| form of National bank notes. The pre-
valllng system of paper money was estab-
lished by the Republicans, and there is no
reason now apparent why the party of to-
day should depart from the precedents
established in the past.
1t has been evident for some time, how
ever, that our National bank system of
issuing paper money does not give us the
| elasticity required. All notes issued have
been based upon bonds of the National
Government, and as these bonds have
diminished in amount and in the rate of
| interest paid they have ceased to furnish
sufficient basis for our paper currency.
| Some reform in the system therefore is
imperative.
1t is to that problem the attention of the
people will now be called, and the chances
are it will form the dominant issue in our
politics for some time to come. 1t is GER
tainly advisable that the problem should
be solved during the new era of pros
perity and of Republican supremacy. 1t
would be an unfortunate thing for the
country it, for any reason, it were post
poned until it should be entangled with
other questions likely to arise and COM
piicated by a disturbed condition of trade
and industry.