The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1896-11-21

THE BANKERS PLAN.
That the monetary system OF the
United States will undergo q general
revision, if the big banking concerns
Of the country are allowed to have
their say land it seems now as it they
willy seems to be settled fact. The
plan appears to be to stake the gov
ernment out of the banking busl-
.ness'' and give the national banks
the sole power to issue paper currency.
That it is their purpose to destroy
all credit currency and place the total
dependency of the country for circu-
lating medium in the hands OF the
national banks is evident. Recently
the Chicago Express sent to large
number of leading banks and trust
companies this question: What
should congress do to improve the
national monetary system?" Here are
some of the answers received:
John ]. Mitchell, president of the
: Illinois Trust and Savings bank, said:
"My opinion briefly is this: Con-
gress should retire all the greenbacks
and silver certificates and to prevent
contraction of the currency, issue. long
term per cent gold bonds, allowing
the banks to issue currency against
them at par. This would do away
with the reserve fund and take the
government out of the banking busi-
ness entirely"
j E. S. Lacy, president of the Bankers
National bank and ex-comptroller OF
the currency, says:
''In my opinion congress should
fund the greenbacks and treasury notes |
into long term low rate bonds. in
crease the issue of circulating notes to
national banks to par OF the market |
price of bonds deposited to secure the |
same, reduce the tax on bank note is
sues to one.fourth of one per cent, in.
crease the redemption fund maintained
by the banks to 10 per cent, provide
for the daily redemption OF these notes
at the offices of the United States
treasury in New York, Chicago and
st. Louis, and increase the customs
duties to an amount sufficient to meet
the disbursements of the general gov
ernment, levying the same upon the
protective principle moderately ap-
plIed.
1.-THE retirement of government
notes should be limited each month to
an amount equal to the volume OF new
bank notes issued, SO that no contrac-
tion in the volume of circulating
medium would result"
Byron L. Smith, president OF the
Northern Trust Company. says:
'sThe government should go out of
the banking business by abolishing its
subtreasuries, depositing its money
with the national banks, and the gov
ernment should retire and cancel all
its demand obligations, allowing the
national banks to issue circulation Sc
cured by government bonds at par.
There is no reason why the issue
should be limited to 80 per cent as at
present."
JohnsR. Walsh, president of the CHI
cago National, said to be the heaviest
in the city, said:
Congress should provide for retir-
ing all government paper currency by
issuing q per cent ffty-year gold
bonds that could be used as basis for
national bank circulation at 30 per
of their face value, which circulation
should be issued as fast as the govern
ment paper currency was retired.
This done, all the silver bullion and
silver dollars in the treasury should be
sold at the market price for silver, at
tbs same time repeating the law that
provides for making silver dollars legal
tender. If all bank notes below $40
were withdrawn. I believe the country I
could use at least $3.50, ,0O0. 900 of silver g
as subsidiary coin. After this opera r
ton was completed we would have '
three kinds of money: Gold, which /
would be the, only legal tender; ma: s
tional bank notes and subsidiary sill ?
yer." e
There you have complete outline a
Of the scheme for revising the cur q
rency. If the bankers have their way o
The $3.50, 100000 of credit currency, q
treasury notes and silver 8
will be called in and gold n
bonds issued against them at or q
per cent. This little plan of itself a
would increase the interest payments n
# the government SIS, 200, 900 to $780, n
700, 600 annually. By such system p
,he circulating medium of the country I,
would be solely at the mercy. of the ci
They could make. money
Icarce or plentiful at will. And ac- is
,ording to Mr.. Walsh, we would have C:
,nly one kind of real money, which is
would be gold, while the government
would be paying to the banks an i'm Il
nense annual interest in order that v,
hey would circulate sort Of money tr
hat would have no legal tender func- ii
ion, but would circulate like bills of 1t
or personal checks. If the N
ankers' plan shall be adopted, a finan- N
ial system will be fastened upon the N
eople that can never be thrown off ex- W
ept by revolution, and their bondage
o the money power will in few years th
Q so complete that even revolution N
-ould hardly suffice to break it. ia
ar
nET tn WORK. ~
= pl
s'I1et the dead bury the dead" for tn
here is plenty of other work for the ar
wing. The election and the ratification NJ
ritv of the victorious, the opening