The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1897-12-16
THE CURRENCY QUESTION.

on the currency question the clear-cut.
concise and pointed recommendations
are received with marked favor. The
president recommends, In brief. that as
soon as the revenues OF the government
equal the expenditures a new system be
I adopted By Htiich the United States notes
which are redeemed IN gold shall be set
aside as a separate fund and not reissued
except for gold. This process would break
the so-called endless chain by which
the gold Ads been on former occasions
pumped out OF the treasury. The green
backs are upon theg: face redeemable in
gold upon presentation. while the declar-
alton OF congress that the policy Of the
government is to maintain all OF its cur.
rency at par with gold has been looked
upon as indirectly at least bringing me
notes issued under the so-called Sherman
act within that category. The law as II
now stands requires that greeabacks,
when redeemed In gold, shall be reissued
by the government in current business
tlAtaA~ttA tApAsNt am AlAS VI NQNA4SC AldhtS
it practicable to use them aeain for draw.
ing r.,..,e gold out OF the treasury: thus
they become what Is popularly known
as the endless chain for the constant
Withdrawals OF gold. Should the presi-
dents recommendation be adopted. those
notes which are redeemed in gold would
not be reissued, and thus the opportunity
FOR continued Withdrawals OF gold would
soon cease. The criticism which is made
by those desiring to critioise this prop
osition is that It would result in a con.
traction Of the currency, because those
notes thus redeemed and retained in the
treasury would not again 90 into circu-
laton. and thus the circulating medium
Of the country he practically reduced to
mat extent. This objection is met how
ever. by a further recommendation by
the president that the national hanks be
permitted 10 issue currency up to the
rar value OF the bonds deposited as Sc
curity for their circulation instead of 90
per cent OF their face value as at pres
ent; also that the government tax upon
natinnal bank circulation be reduced 10
one-half of one per cent, instead OF one
per cent as az pres ent. 1t IS believed
that this. II adopted, would lead the ma
tlonal banks TO increase their currency
10 greater extent than the reduction
in currency which might come from the
retention Of the United States notes re-
deemed IN gold, The national banks at
present utilize as a basis for their cur
rency less than one-half of the govern.
ment bonds outstanding. It would thus.
I'm case OF an Increased demand for cur
rency. he practicable for them to increase
very materially the amount of their cur.
rency. Up to this time they have utilized
only a small proportion of the bonds
available for that purpose because Of he
fact that there Is not sufficient profit
in the issuance of their notes to warrant
such action, and II the presidents recon- |
mendatlons are carried out. and hey are
to issue notes up 70 the par
value of the bonds. and the tax upon
their currency Is reduced. il Is believed
that it will certainly add 10 the currency
of the country more than any reduction
which would follow the retention in the
treasury OF the United States notes re-
deemed in geld. The president also rec
ommends that the banks themselves be
required to redeem their own notes in
gold Thus, by the gradual retirement
OF those obligations of the government
upon which gold can constantly be de-
manded and making the obligations of
the banks payable by those banks in gold.
the foundation is laid for the gradual
transfer TO the blnks OF the burden OF
supplying the gold demanded by the
country. This general proposition. which
hays the foundation for final retirement
OF the gold-demand Obligations and trans
fer Of this burden to the banks, as Is the