The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-11-17

obhged to borrow and finally compelled
TO call in the assistance OF Il private or
ganizatioD-ih famous bond syndicate
q February, "95." This syndicate came
To the rercue when our gold reserve was
down to IA, OOO,O 900 and going out at the
rate Of 3,OUO,0OU a day. liz not only
checsed this drain and replenished the
reserve, but agreed to protect the reserve
from future withdraws-and did so until
it's contract expired IN October. IL any
thing more needed to show the weakness
Of our tinarcial position? II 40, we cab
find il IN the just cause for complaint, OF
n lack of currency in the regions away
from the great cities. That such coDdr
ton exists in the south and west sdmite
Of no question. lie is not because there IL
not money enough in the country, but
because OF our faulty methods OF distrI-
button. The ia mer il crying for NOR.
money, but what he lacks is banking facil-
tiles and an actual bank note currency
" here he trades.
This great nation OF ours enjoys the
distinction (P) Of being the only import
ant commercial nation without some sys-
TEN Of banks Of lssue-even Mexico has
several large banks OF issue supplying
under government supervision saft
CURRENCY passing at par the country
over. We need not go to Europe for
currency system. Our next-door neigh.
Dor, Canada, has a most excellent system
which has been tested for several decade-
and found nor wanting. She has some
forty banks with hundreds Of branches
all over the dominion. Those above a
certain capt. al are allo WED to issue notes
TO the full amount ofcapital and revenue
They are under government control a.
our national banks are and are required
To maintain n reserve fund at Ottowa OF
per cent OF their circulation. This is to
secure their notes which are also frat
lien on the banks assets. AZ result
the bank note circulation OF Canada
passes every W here at par-as do our
government notes.-the Canadian treas
urv need not maintain any great reserve
fund, but redemption OF notes falls where
il should-upon the banks. Further.
more, currency IL furnished where and
when needed and at a much lower rate
than here. Interest rates at Winnnepeo
are about 9 per cent, while at a corres-
ponding distance from trade centres in
the United States they range from 8 "a
IL per cent and even higher.
Now we are asking for return to the
wild cat and red dog" currency Of pion-
eer times. That would be IA Impossible
today az 10 In undesirable. We simply
wish To- call attention to the weak spots
IN our present arrangement. Our gov.
eminent notes-a sort OF dime museum ol
finance consists OF no less than six
different sort Of notes; yet not one ol
, them IL an actual bank note. The
notes OF our national banks are essen.
italy government notes: they became a
: Fixed part OF the currency and need never
: return TO the bank whose imprint they
: bear. Our entire currency system il
> rigid, mechanical and unscientlic, while
. such system "a Canada has, works
, automatically: by being elastic IL re
sponds to the demands Of trade.
. There IL no reason why our national
: banking system could not be reorgan
Z lied on such a basis. Their aQprpgat,
capital and reserve In about billion dol
, lars now. and would soon be largely In
, creased II they were allowed 10 iseu,
4 notes in national way and not unde,
; the altogether inadequate Iplan OF GOV
a eminent bond security, now in force.
' OF course suc reform will cause tn
: asinine populist to have another connip
q ton fir, but his bowls against n proposi
}. ton are fast becominR sure evidence q
!. rte nationality with sensible people
Q This outcry against the banks 10 to-
q idiotic and belongs TO the dark ages.