The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-11-18
-xnR. HORACE WHITE ANSWERS
QUESTIONS OF THE NONE
TARY COMMISSION.
m ELASTIC BANKING CURRENCY
ssc.vored-Hetir of Greenbacks
AdvOcnted-The Silver Dollar
should He Redeemed In
Gold Coin.

Washington, Nov. 14-Mr Horace
White, whose book upon money and
Ranking has attracted so much atten-
fi0D, has submitted some clear-cut
answers to the interrogatories of the
monetary commission regarding improve
ments in the currency system of the
limited States.
Mr.. White is an outspokcn advocate
nj the retirement OF the greenbacks and
the adoption of an elastic banking cur
TsncY based upon business assets. He
declares that the silver dollar should be
scsieemed in gold and that in n financial
sense there is no difference between the
gR1ns Of government fiduciary circula-
:fion, Of which silver dollars are part.
'"rhe latter" he declares, "arc metallic
s,reenbacks."
He does not believe that the amount
al circulation presented for redemption
,auld be- any greater than ut present If
silver were redecmablc in gold.
I'm answer to questions regarding the
maintenance Of the gold standard Mr.
White says:
II would recommend the redemption.
retirement and cancellation of all legal
tender notes as n first step. Probably
the silver certificates and silver dollars
w0nld thereafter remain At par with
Toid, like the outstanding thalers Of
Germany. and would not bc presented
.f0r redemption in any considerable
amount being needed like the smaller
silver coins for circulation in retail trade.
After the retirement Of the legal tender
notes we should be- able to see better
what 70 do next"
Q.-FOr the purpose Of facilitating the
nsp Of existing silver currency what
would You recommend ~ the smallest
determination OF United States and bank
notes which should be put In circulation
A.-Ten dollars at first, hut this should
he made matter of experiment. the OBJ
jecf being 10 determine the dimensions
Of the field of circulation which will alb
.s0rb the silver currency. leaving IN"
rest TO bank notes.
In regard to legal tender notes Mr.
Whites responses were ~ follows:
Q.--On what grounds. if any. would
yon favor the gradual. but entire. with
drawal Of the treasury notes of 1S!W 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-rcdcmption
IN n political issue, to be- fought over IN
elections. and must remain so as long
as this kind OF paper is outstanding.
Mere uncertainty is always q drawback
tn business prosperity. Failure of re-
dcinption would be bankruptcy, public
and private.
OF il shall be decided to retire the
2lnited States notes how can II he done
without adding to our bonded debt!
A-Ry cancellng all that are received
al the treasury for taxes or presented
for redemption or all so received over
sand above the necessary disbursements
tQ.-How. in that case. can provision
be unade for maintaining an adequate
amount of currency available for pur-
poses OF business?
"A, Provision will he made automati- !
saIly In various ways, viz: 0) BY re-
thinning the gold produced by our mines
(2l by importing gold from abroad; (3 by
fine issue of ma tional bank notes. l'rior |
fle the civil war the government gave |
itself no concern about providing cur
rcncy for PURPOSES Of business. yet the |
supply was never deficient
of il liz thought incXpcdieni to |
6und the United States notes now, how
can they be redeemed with an assur-
ance that bank currency will take their
'place?
Attic assurance is found in the fact !!
! chat IN every ease where u currency |
vacuum existed il has been filled by |
hank notes. This was the ease in the |
panic of 1895. The process of taking |
cut note. might he made more cxpedl- |
: iiUus. That is u matter of machinery !
md Of legal regulation. II is perfectly |
certain that il there is Il proht III |
issuing bank circulation il will he issued. |
If there is no profit in il we must con- |
a.ude either that the law needs amend |
Fmcnt or that the demand for currency is !
slight.
Mr.. White believes that in the process |
of time il will not be possible TO rely |
upon national bonds rs security for bank
note issues. because of the extinction OF
the public debt. In reply TO the Qucs-
tiona whether any practical plan can
be devised for using other securities. he
says fiat he thinks not.
u should not like to he charged with |
the responsibility Of selecting the Sc
curties or choosing between the different |
kinds offered"
He believes that 10 per cent Of the
gaidup and unimpaircd capital of the
hank should he the limit OF the note
is,,es and that cash reserve should be
held for the redemption of notes, 'the
same as now provided by law for de-
posts, viz; % per cent in reserve
'ritcs' and n per cent elsewhere, with
the right TO keep thrcc-fifths Of said
10 per cent in the reserve cities. There
is no difference between deposit liabil-
ties and note liabilities. 80 far ms the
bank itself is concerned. and no reason
why the reserve should he greater or
less for the one than for the other The
reserve should consist of gold and should
he in the vaults of the bank or in q
clearing house depository"
Other questions regarding the best
plan for establishing and regulating II
hanking currency are answered by MIR.
White MS follows:
I'm general ! approve Vt the plan