The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-21

ton of banks. at the close of husinass oooh
aay, OF each branch bank should be tele-
srapned TO the head office, so that a comnieta
ana comprehensive statement of the hanks
analrs should be known at the head offca
should be made public on a fixed dav of eacb
week. regard such frequent publications
a. the pest safeguard which the law can
Ih.o" AROUND the business of banking.
AS distinguished from the subtreasuTv nIan
one DAMN plan presents two advantages which
oamnoe De 100 often referred to-. When the
governments revenues are excessive II allows
the excess to remain in circulation. Wben
revenue Is temporarily deficient it affords an
selling long time bonds.
l nave devoted the major part of my time
20 .ne most important factors affecting the
WIN a central bank the rearrangement Of
the details OF the currency, without contrac-
b b or other disturbance Of business would
pe comparatively easy.
Inc principal difficulty grows out of the ex-
and aa9r una TACT that there are silver dollars
az sGaa collars, both in law of equal value
o. co a desai tender in payment of debts, but
commercially a whole silver dollar is oniy
worth one-half a gold dollar.
Comparatively few of the silver dollars are
IN the hands of the people, but locked IN in
sne United States treasury; there are over
dye hundred millions against which silver
certlncatesi have been issued, which must he
dealt with in the currency reformation.
10 stop short of d~isposing of the treasury
teLlporlzat1on. AS long as that vast pile Of
silver is owned by the government the tenn
ta1ion to endeavor to put it ahoat as money
will be always before each succeeding con,
gress and administration.
ASIDE from the treatment of the silver the
prODlem does not seem difficult. The treas
uFy report OF the Both of April, 1897, shows
tHat the government has five distinct classes
OF paper promises and certificates, which are
tnuended to be used as money, the aggregate
issued amounting to 1851, 785, 489. On the same
uaCe tnere were withdrawn from circulation
and held locked up in the treasury, idle and
useless, which could be used in retiring the
OUTSTANDING issue, the eUOFmOuS apnOrpf oF
s s@6 42I' $50 ~ ~; Or only $9s 184, 652,7 less, in
AMOUNT, than the total which has been issued.
ment: " nix S'"te-
Glasses. Amount Tssred
United States legal tender notes. $346. 6S1, O16.00
0nlted states notes Of 1890. -. ZIG, 693, 280.M
Gold certificates az 939 689 On
Silver certificates 37 51 S64 no
Certificates of deposit. (act June
o. 1917 II $40 000. 90
Total issued "........... 1851, 7S5. 1890
Amount in treasury available for redemp-
ton:
Gold sion 100 goo Q,
United States legal tender notes. 98'' 949' $50 "a
united States notes of 1890. go. "a, 442. 653.0
Silver certificates 13. m az. IN
Certificates of deposit (act June
%. IoIJ 2,035. 000.O0
National bank notes ............ 8,676. 050.OG
Total in treasury. S85S. go 836. n
Since that portion of the greenbacks, silver
certificates and other issues which are now
IN the hands of the people, cannot be re-
deemed until presented, which in the nature
OF tnlngs will continue a long period of time.
II is evident that congress could at once
ommenc the policy of redemption and re-
6eem everything which would be presented as
last as presented without any contraction OF
tne currency whatever. and without issuing
opnus; II the subtreasury system could be
abolished and the silver in the treasury could
De issued at par as money.
ARGUMENTS AGAINST BANKS.
have, in an imperfect manner, stated some
OF the arguments in favor of the bank.
What are the arguments on the other side?
All the against the bank which
were produced against the rechartering of the
pdnk IN 1858 except one, and all
Whlcn can now be produced in the negative.
except the same one. were exhausted more
tnan Z0V years ago in opposition to the passage
OF the first charter of the Bank of England
l quote a synopsis of these arguments from
SmoIlet's History of England"
. ne opposition party affirmed that it Ghe
DankJ would become a monopoly and engross
the whole money of the kingdom: that as il
would infallibly be subseryient to government
views 1t might be employed for the worst pur-
poses of arbitrary power; that instead of as
sisting it would weaken commerce bv temDt-
ing people to withdraw their money from
trade and employ it in stock jobbing; that it
would produce a swarm of brokers and Job
oers to prey upon their fellow creatures,
encourage fraud and gambling and thus cor
rupt the morals of the nation"
The only other argument which was used
IN 1858, or which can be used now. is that
argumen which was most potent siy+v vea~s
ago and would still have some weight, viz:
Ran for Gen. Jackson" NJ. Cheval:er.
who witnessed the singular contest against
rechartering the Bank of the United States,
oescrloes the of the opposition as
CONSISTING of "Anathemas against the monop-
Oily! Hurrah for Jackson, Jackson forever,''
another historian says that .'Hurrah for Jack
son was an argument against which nothing
could prevail" But that was more than
SIXTY years ago, and the country has made
progress in the meantime.
Than fhn
Tess minority and the economic functions of
DankS were but imperfectly understood.
dooay the masses are more intelligent and
numerous and influential. The functions of
the bank are better understood and the
numbers of people who make use of bank
ing faculties is much larger in proportion II
the entire population than in 1855.
Sixty years ago the United States hank wa
ueSfrpyed, not for economic reasons, but for
selnsh party interests. At that time the pro-
foundest thinkers, scholars and statesmen. as
well as the most distinguished men of affairs
favored the principle of a bank. but The
soundest argument and the most conclusive
array OF facts were as nothing compared with
the magic of the name of Jackson. who was
the IDOL and the hypnotizer of the masses.
BUT II seems to me that the time has now
come When politicians, as well as statesmen,
can ahord to take counsel of their common
sense, of their own experience and observation
and of the teachings of history. instead of
a hereditary prejudice.
THE PRESENT ADMINISTRATION.
AT the same time it must be admitted that
the position OF the present administration in
regard to the finances is a very difficult posi-
ton.
The educational campaign. in which the adj
mlnistration was elected, taught the people
TO expect substantial measures. and at the
same time enlightened them to such an OK
tent that it will hardly do to present ANYTHING
short OF substantial reform, of such g nature
as 70 give ample assurance of the contin-
uance of the gold standard. At the same time
the public mind is not settled upon definite
measures. 1t is in condition to ~criticise rather
than to suggest measures.
The nearest approach which public senti-
ment has made toward concentration on def
mite lines is the universal expression that
the government should go out of the bank
ing business" which, as far as I am able
TO Judge, means that the government should
retire, not a part. but all of it's circulating
notes and warehouse receipts which pass for
money.
While this seems to be the trend Of .public
opinion tie composition of congress appears
measures which shall in the least urfayorabIy
aftect the interests of silver"
Under the conditions, it seems to lie hone
less for the administration to actually pass any
financial measures of Importance during the
present congress or until there is & change in
the senate.
The most tina. can be done it to present such
measures. 1t seems to me. therefore to be
the part of political wisdom to present such
a comprehensive scheme. as the more il is
discussed the more evident it will appear
that 1t is a genuine measure of reform. which
would. If adopted, result in substantial ad-
vantage. Such a plan would be discussed in
congress, in the public press and in the sub
sequent elections be the subject of other CAM