Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1897-11-18
MONEY AND BANKING.
Shs tsssrrcssteriss of shs Monetary Com
@issssa saswerea By Horace white. Ea-
p~st- whss- nssk oa Money and nsnhias
hsa Previously Attracted Mach Attss-
sies s-sm- Important sasxe.sieas.


vsst- whose nosh oa Money and Bsahias
sssa Previously Attracted Mach Aitss-
siss ->sm- Important sasHe.tisas.
WASHINGTON. Nov. lS-Mr. Horace
White. whose book upon money aud
banking has attracted 50 much attcn-
ton. has submitted some clcar-cut
snswers TO the interroga,orics OF the
monetary commission. regarding i'm
provements la the currency system of
the United States Nc. White il an
outsPOiScn advocate of the retirement
OF the grcenbaclss aud the adoption os
an elastic banking currency based on
business assets lie declares that the
silver dollars should BE- redeemed In
gold, aud that in financial sense
there II no dihefcnce between the sew
erai forms os tho fiduciary circulation
of which silver dollars are a part.
The latter" he declares. are metal-
lic grscnbacks- lie does not believe
that the amount OF circulation pre-
scuted for redemption would be any
greater than at present IL SILVER were
redeemabls in gold.
In snswer To the questions regard
Ing the maintenance Of the gold stand
ard. Mr.. White says
II would recommend the rcjemp-
tlon. retirement aud cancellation Of all
legal tender notes. as urSt step.
Probably the silver certificates and sii-
yer dollars would thereafter remain At
par with gold. like tie outstanding
thalers Of Germany. and would not be
presented for redemption In any con-
siderable amount. being needed. like
the smaller silver coins. foe eircula-
tion In retail trade. After the retire
nont Of the legal teaacr notes We
should be able - sec better what To do
next
oaessioa--For the Puryos- u fAeili-
tAtiag the use Of exisiiuS silver cur
reaey. vhat do ypa rrcsIn mend a. the
smallest denomination % United
states notes Nnd hank notes which
shouid be pat in eireaiatloas
Aasver.-rea dsliArs AZ a-xt: bat
tais shSaii - mAsie a matter % ~xperi-
nncal the object teiay - dcterni ne
tie = ssn~aoas os the field os clrcula.
tioA .rhieh will absorb the silver cur
r~ney. leaviug the rrss 70 hank aose.
~ regard Ia the legal tender notes, A.,
Mr. Mhiie'S reSPonSrs arr n follows.
Y -on what sfreuadS Il any. Son a
you favor the gradual but cntire With
draNai of the treasury notes u Isyl.
and u the Uaiied States uo,esr
A-Oa the ground that there i nc
certs.aty. and can bc no CERTAINTY.
that the government will alwavs re
deem them in gold Redemption os
non redemption 10 political issue Z
b. fought over in elections aud must
remain - n long n TIA, kint - paper
- outstanding. Mere uncertainty j.
always = draw back "a business prus.
Perity. Failure Of REDEEM ptioa would
Dc bankruptcy, public aud private.
OF a shall be decided To retire
the United States notes. how can IL be
done without adding "a QUO bonded
debt.
A-By canceiling ali that are re-
eeiyed at the treasury for taxes or
presented for redemption. or all - re-
eeised over and above the govern
nent's necessary Disbursements
Q-how. ia that ease. can provision
be made for maintaining an adequate
amount of currency for purposes OF
business?
A--Proyision VIII be made auto
matically in various ways, via: fl By
retaining the gold produced in our
own mines, a. by importing gold, gSl
by the issue of national bank notes
Prior to the civil war the governme n /
gave itself no concern about providing
currency for purposes of business. yet
the supply was never deficient.
OIL it be thought inexpelient tc
fund tue United States notes. how can
they be redeemed with the assurance
that bank currency will take their
placss
A--The assurance is found in the
fact that in every case where a cur
rency vacuum has existed. il has been
hlled by bank notes. This was the
case in the panic Of 1895. The process
of taking out notes might be more ex-
peditious- That is matter of machia-
cry and of legal regulation. IL il per
fectly certain that IL there is a profit
in issuing bank circulation il will be
issued IL there is no profit in 1t. we
must conclude tina, the law needs
amendment, or that the demand for
currency is slight.
Mr.. White believes that in process of
time i, will not be possible To rely
upon national bonds a. security for
bank note issues, because of the ex-
sfn.ff..r, - IL.
To the questions whether any safe and
practicable plan can be devised for
using other securities. hc says that he
thinks not II should not like to be
charged with the responsibility Of Sc
lecting the securities or choosing be-
tween the different kinds offered
'ln general l approve of the plan
adopted by the American Bankers' as
sociation at baltimore, in October. 1894.
commonly called the baltimore plan.
All bank notes should be redemable at
the commercial center of the country.
and also Mt their own counters. Per-
haps an exception should he made of
the Pacific coast on account of dis
tanee- The requirement of redemp-
tion at the banks counter was found to
work no hardship under the Suffolk
bank system. since as much specie was
customarily deposited in the country
banks as was called for by depositors
or note holders.
Q-wha. il anything. beyond pro
vision for immediate redemption is
needed for securing elasticity of note
issues In periods of normal business?
ABILITY to issue notes promptly
Is as needful as prompt redemption.
ON times OF panic or sudden
stringency. how would you provide for
additional issues by the banks, to
enable them to continue discounts and
prevent commercial distress?
Al would allow an extra issue to
- per cent of tho banks capital, con.
dltioRed upon the payment of tar.
at the rate Of five per cent per annum,
to the government as long as the ex.
cess OF notes remains outstanding.
o-Should any national bank be