The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-02

seuna Messy Republicans or the west for tire
Grsenback THAT Means Gold.

seuna r1euey Republicans or the west for the
Grssnbsck THAT Means Cole.
From the CHICAGO Tribune.
THE Sun. the strongest and most influential
Republican paper In Greater Now York, defines
Its position on tho currency question with rroat
clearness and in q fashion which will suit tho
Republicans of the West. 1t begins by stating
that tho fundamental issue I" Is:
Shall the paper money Of the nation DO issued en-.
clusively by the banks. or shall It DO issued exclu.
sively by the Government At present both agencies
are In operation. and each ono 10 struggling for su-
premacy over the other.
Ono OF the rivals must surrender to tho other
and leave In Its exclusive possession the func-
ton Of supplying what paper money the people
need. To whose hands can that function DO
most safely intrustedi After quoting Secretary
Cages remark about "the national Treasury
awkwardly performing an Office entirely foreign
to Its proper function" THE Sun observes:
In the same spirit the Mugwump Ne,o York Times
Friday morning editorlally denounced the issue OF
currency by the Government exclusively rs a scheme
OF imitation destined 10 bankrupt tho nation, because
under It the currency would DO controlled by Con.
gress and not put In charge of the banks. The Times,
however. omits to mention that four times within
twelve years-namely. In 1884, 1880. 1893. and 1895
the banks OF this city defaulted on their obligations
to their depositors, and that these depositors, in order
to get currency with which to carry on their business,
had TO sell their checks to Wall street brokers at q
considerable discount. To vest in such weak institu.
tions and in the less responsible banks OF the rural
districts the exclusive function Of issuing paper
money IL an act Of folly which our people will never
commit
THE Sun states that tho advocates Of bank
currency arc divided into two parties. One of
these desires to have the bank currency guaran.
teed by the Government and redeemed through
the Treasury. But in that case:
The Government Is to print the notes. take charge
OF the fund for their redemption. redeem them when
presented. and pay them when the banks fail to pay
them. That the Government might as we'll do the
business on its own account and for its own benefit il
too plain to need demonstration.
The other party desires to return to tho ante
war system, each bank issuing notes against its
own assets and redeeming them only at its own
counter. But to allow the thousands OF little
banks in the United States ITO issue notes at
pleasure and let the people take the risk Of their
/, being good is an absurdity which needs only to
be seen to be rejected"
THE Sun announces that the position 1t takes,
1.-THE only sound and logical position" is this:
All the paper money OF the country shall to issued
by the Government directly and redeemed by Il di
rectly. without employing the banks to do It and
paying them for It by paying them interest on bonds
purchased with the money which 1t guarantees. Still
less should the banks be allowed to issue circulation
without security and without limit. The Govern
ment money should always be redeemable In gold
and instead Of being. as the Times falsely asserts II
would be, unlimited in amount, 1t would be limited
by redemption to no greater volume than the wants
of legitimate business require. How much this
volume could consistently with its redemption be
Increased over that OF our present Government
money experience would determine. Probably S23e.
100000 OF It would be needed to take the place OF
the $685. 900. 900 Of outstanding bank currency. ant
possibly more; but, whatever its amount. It should
always be redeemable in gold. and therefore 1t woult
be Is good rs gold.
These are the views which THE Sun is advo
eating. They are the views of more Eastern
Republicans than the advocates of a bank.nott
currency are willing to admit. They are sub
stantially the views which Western Republican
Congressman will be found advocating wher
Congress meets.