The times., 1897-11-24


A dGuble-leaded article in tie New York
sun Of yesterday presents about the Dlost
astonishing change of front in one If the
Iuost extreme gold organs OF the country.
thatit has ever been our privilege toobSerre.
Whether Il is intended as a Nap0leonc flank
movement, representing a design of certain
financial interests TO plough with the iieifer
ofttte enemy until the ground shall 0e broken
for further operations, or whether It is ooue
taken as an editorial academic excursion
in new fields, suggested perhaps by inde-
pendent reading of works like Mr. Henry
Y. Pool' book on Money, the departure it
self is interesting. 1t may conceal some
thing in toe woodpie, or it may not
The Sun article begins with the state
ment that THE only currency measure
which the Administration is likely TO i,ress
upon Congi ess at ITS coming session, is one
repeating tre act of Ma y 81, 1878, which
authorizes the reissue OF the old legal tender
notes. wnelncr they come into the Treasury
t.yredemption or otherwise. separating he
gold redemption reserve from the other
funds in the Treasury, and permitting the
reissue of demand notes only against gold
deposited for their future redemption.
The sun thinks it doubtful that such u
measure can be passed, in which opinion we
concur but it argues that, if it can ne, it
wnlplace the issue departmentoft the Treas
ury in a position similar 70 tina I OF the issue
..-- - p.,l - ErolaDa aud
deprive the enemies Of Government paper
money Of all pretexts for denuuncing it as
an endless chain for depicting the Treasury
OF its gold" Under this condition, the
sun explains. 50 soon as any considerable
amount OF Government notes was sent in
for redemption. aud the gold drawn out
for them was shipped abroad, thc currency
would be contracted, interest rates would
rise, and the outflow Of gold would oe fol
| low ed by its return to thiscountry. Allthis
isvery interesting, but what follows IS more
| so:
1t is desirable. however, that TO secure
to the Treasury the full benefit of this re-
| form the currency issued by the natlonal
| banks should be retired Is fast as possible
! consistent with the vested rights of the
banks, and its place supplied with Gov
ernment notes. Fortunately, the char
ters Of the ma ajority Of the banks willeXpire
| in the course OF the next ten years, and
those Of nearly all of them in five years
| thereafter These charters should not
| be renewed, and the banks should
| be required to reincorporate themselves
| under the laws of their respective states,
Telinquishing completely the privilege OF
| issuing currency, which ought never to
have been granted them With bank cur
rency out of the way, that OF the Govern
| ment would have the field TO itself and
| might be augmented without risk TO meet
| every requirement OF business.
An along, with joyful accord, the gold
organs have been clamoring for laws /,
retire al Government paper, to replace
its entire volume with bonds, aud then to
issue national bank currency tc the full
amount Of the bonds. An the mono
metallist interests and influences have
been shouting To the Government 10 go
out OF the banking business and to turn
it an over to the national banks. Here
is an important gold organ which startles
persp1riue country with a proposition
TO abolish the national banks, as such;
to retire their currency, and to substl-
tute for it fun volume of Government
currency