The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-15

recommend the redemption, retirement
and cancellation of all legal tender
notes, as a first step. Probably the
silver certificates and silver dollars
would thereafter remain at par with
gold, like the outstanding thalers of
Germany, and would not be presented
for redemption in any considerable
amount being needed, like the smaller
silver coins, for circulation in retail
trade. After the retirement of the le
gal tender notes, we should be able
to see better what to do next
Q. For the purpose of facilitating the use
OF existing silver currency what do you rec
ommend as the smallest denomination of
united States notes and bank notes which
should be put in circulation?
A. Ten dollars at first but this should he
made a matter of experiment, the object being
to determine the dimensions of the field of
circulation which will absorb the silver cur
rency, leaving the rest to bank notes
In regard to the legal tender notes. Mr..
Whites responses are as follows:
Q. On what grounds, if any, would YOU
favor the gradual, but entire withdrawal of
the treasury notes of 1890 and of the United
States notes?
A. On the ground that there is no certainty
and can be no certainty that the government
will always redeem them in gold. Redemption
or non-redemption is a political issue to he
fought over In elections, and must remain so
long as this kind of paper is outstanding,
Mere uncertainty is always a drawback to
business prosperity. Failure of redemption
would be bankruptcy, public and private
z. If it shall be decided to retire the
United States notes, how can it be done with
out adding to eur bonded debt?
A. BY canceling all that are received AZ
the treasury for taxes, or presented for re-
demption, or all so received over and above
the governments necessary disbursements.
Q. How in that case can provision he
made maintaining .
currency available for purposes of businesse
A. Provisions will be made automatically
in various ways. viz: o. By retaining the
gold produced by our own mines. (2 nv inn
porting gold from abroad; 90 by the issue Of
national bank notes. Prior TO the civil war
the government gave itself no concern about
providing currency for purposes of business
yet the supply was never deficient
Q. If it be thought inexpedient to fund the
United States notes, how can they be redeemed
with an assurance that bank currency will
take their place?
A. The assurance is found in the fact that
in every case where a currency vacuum has
existed it has been filed by bank notes This
was the case in the panic of 1885, The process
of taking out notes might be more expeditions
That is a matter of machinery and of legal
regulation. 1t is perfectly certain that IL
there is a profit in issuing bank circulation
it will be issued. If there is no profit in il
we must conclude either that the law needs
amendment or that the demand for currency
is slight.
Mr.. white beheVes that in process
of time it will not be possible to rely
upon national bonds as security for
bank note issues, because of the ex-
tinction of the public debt In reply
to the questions whether any safe
and practicable plan can be devised
for using other securities, he saws
that he thinks not. Il should not like
to be charged with the responsibility
of selecting the securities or choosing
between the different kinds offered
He believes that 80 per cent of the
paid-up and unimpaired capital of
the bank should be the limit of the is
sues, and that cash reserve should
be held for the redemption on Other"
the same as now provided by law for
deposits, viz: twenty-five per cent
in reserve cities and Is per cent else
where, with the right to keep three
hfths of said 10 per cent in the re,
serve Cities There is no difference
between deposit liabilities. SO far as