Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1897-12-09

Asns&i Report .f Comptroller jams %.
Esk.ts 49, Needed Iegi.istisa Axain
Urged lie B~ties~- tho sss~r.m-ss
nh@sid with hfrsw ns Circulating >stes
and R~i-gst~ q. the ussAs the >spriy-
i.x 90 Cars~sey-
wksuINarox. Dec The annual
repor, Of James n. Eckcls. comp
trollcr Of the currency. foe the year
ended October -. l>aT. opens with .
brief review oi the history Of the leg
islation which constitutes the present
national bank act. and invites the at
tcntton Of congrcsS 10 the amend
ments to the law recommended In for
m-r reports ~ithoat specifically repeat
ing them.
On the subject Of bank note elrcula-
ton. the comptroller says:
1T " noticeable that in all the
changes which have been wrought in
the national currency act from it, in
ceptioa Ia the present time. the feat
urr subject 10 criticism. but which was
Intended should consulate the prinei-
pal benefit 10 he conferred. has re-
manned comparatively unchanged.
namely. the note issuing function.
Whatever Justification there was in
the first iastanee for restricting the
Issuing OF notes against the bonds Of
the governnent. deposited with the
trcasurer OF the United States 10 %
per CENT Of the par value thereof
long since ceased. In the report
81 every comptroller Of the cur
rency during the past - years tue
wisdom of changing the existing law
is.s hus. .s.I
the eommnnities in which they arc lo-
Gated, might have the additional ben
eft Of an added loanablc capital has
been urged. Despite all this the law
still remains without amendment.
Not only should the bank act be
amended in this particular. but con
grrS, should seriously consider such
change ia the method Of bank note
issues a. will enable the banks of the
country 10 morc adequately meet the
demands 81 trade and commerce ia all
sections of the eoantry. The business
of banking. like every other form OF
Investment. must be male attractive
10 capital IL u is placed upon fcot-
ing different from other undsrtakingS.
embarrassed through unnecessary re-
strietioas. and deprived Of proper
soarc-s II profit the result
eanna- b. otherwise than that
inves,abi- capital will seek other
means of employ ment, aud to such ex-
tent deprive the people of the benefit,
Of the agency mu>t requisite To com
Enerciai activity. IL il considered by
every great commercial govcrnm-nt
except the United states. to be the sole
province of the banks To- issue paper
which eireulates a. currency. The be-
lief in a bank note currency A. being
better aud safer than a government
paper currency prevailed u0qaes-
toned in this country. until. under
the apparent exigencies Of the war.
the government undcrtoolS - issue pa
per currency. Even under such CIR
cumstances the pronise was always
given, however. that IL should be re-
tired at the earliest practicable mo-
ment. aud the admission was freely
made that it was neither u wise meas
ure nor n safe form of currency.
between the competition OF the
government note issues ON the one
hand the unnecessary restrictions i'm
posed by law upon the other. together
with tbs increasing price of bonds re
quired To bc deposited a. security. the
note issuiag function Of the banks has
been permitted u become merely an
incident to the conduct OF the national
banking associations Of the country
IL has been seriously suggested more
than once that the bank issues be
done away with and all paper be is
sned 10y the government instead. The
danger Of such a course : not to be over
estimated. 1se experience of every
government has beru that the govern
mental currency paper Is a source Of
weakness aud danger. La thc United
States where there has been the near
est approach Ia success with the vol
ume of the federal paper compara-
lively limited in amount. the credit Of
the government has been more than
once put iu jeopardy through IL and
the business Interests of the country
subjected To unnecessary less and CON
fusion.
The argument that the government,
better than the banks. caa provide for
the redemption of paper note issues.
analysis. The government has nc
means for caring for its demand liza
bIlities. except through borrowing aud
through the levying of taxes Upon
the other hand the banks have assets
which can be promptly converted into
cash to meet their outstanding notes
when presented. Their ability to com
mand gold has always been beyond
that OF the government. for in each
financial exigeDey which has con-
fronted the government the banks have
furnished To it the amoun u necessary
to maintain its solvency. IL Is impossi-
BILE to believe that with a system of
bank note issues based in par. upon
securities and in part upon bank as
sets. the country cannot be provided
with n sound. safe and elastic bank
| note issue. always commensurate with
| and responsive to the demands of
trade. The bank of England. the
bank of Scotland aud the bank of Ire
land have been found To be ample in
their resources To provide the note is
sues for use in the trade of the United
Kingdom The same is true of the
bank of France. The Deu.sch Reichs-
bank or German Imperial bank has for
more than - years issued bank note
| paper against assets which has main
tanned its value aud has been 50 con-
trolled a. to successfully meet the com
mercial needs of tho empire"
Refused to Interfere.
| LONDON. Dec 6.-Rt Hon. Charles