The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-08

of the office Of the comptroller of the cur
rency IL is found that during the exist
ence Of the national banking system $50
associations. having a combined capital
of $50, 900, 600 have been placed in the hands
OF receivers, OF the number of those In
this list whose affairs are fully closed only
IS, having a capital of Sl,6lO.D0 would
have failed to pay in liquidation an
amount sufficient to fully provide for
their circulating notes, had such notes
been outstanding to the full limit, as
herein contemplated, at the time of their
failures, respectively. The deficiency
would have required to cover IT a contri-
button from the guaranty fund of but
Sl9i,S29. Had the whole number of 800
associations maintained in current use
an amount of note ISSUES equal to % per
cent. of their capital, as herein proposed,
the per cent. tax on such circulation
would have produced the sum of $2,45i,-
| 14O.iS available to meet the deficit of Sl9i,-
| S24, shown to have resulted from the fall
! ure of the 1S banks which failed to yield
| from their own assets the amount that
would have been necessary to provide for
all their own outstanding credit cur
| rency.
OBJECTIONS MET.
In submitting these recommendations,
| am not unmindful of the convictions,
| prcconcepticns and prejudices so widely
/
| relates to our currency and banking sys-
| TEN. 1t will at once appear to many that
] the proposal herein made to place in con-
| ditional retirement the sum of $20O,O0OJyO
! in our legal tender (greenback) issues is
a discrimination against a form of paper
money, which, under the influence OF a
worthy sentiment. has become to them a
symbol of the unity and power OF the ma
| tion's life. A little reflection, however,
| will lead to a conclusion quite to the con-
| trary of such an inference. Bearing IN
mind the fundamental truth upon which
this argument rests, viz, the necessity
for a reduction in the volume of demand
liabilities, now constituting a menace to
the public treasury, it Is, economically
! speaking, "A matter Of indifference wheth-
| cr this reduction be made in the volume
| Of silver, silver certificates, treasury
notes, greenbaCks, or in some agreed
upon proportions of each; but the histor-
iCal fact is that It has been through the
grCcnback, the only unalloyed credit note
| of the government, that the endless
! chain has been worked. once disburseu
| these notes hnd their way, by purely
| natural process to the banking centers
| where in case of an outward movement Ct
! gold, or because Of any internal move
ment of distrust, they have been a ready
agncy to depletc the gold reserve in the
public treasury. The proposition to re-
tire a large portion of these notes into
an issue and redemption division, there
to be held until the public is willing tc
offer for them in fair exchange an equa
sum in gold, IS a proposition to dignlfS
them with the honor of actual gold equiv
aloncy when they are passed out, as they
have hitherto been honorcd with actua
gold equivalency when pushed in upor
the treasury for redemption. The propo
sition is therefore quite different from G
proposition to retire and destroy them
On the other hand, the proposal to thus
preserve ami honor them will excite OBJ
iections from another class, who Will al
lcge that the notes now in question shoulC
be retired and utterly destroyed. They
how held, will prove an irresistible temp
tation to which congress VIII yield WheI
in some eXigency extraordinary and press
ing needs for public expenditure shal
rest upon the treasury, and that the re
strictions now proposed, if adopted, vii
then bc disrcgarded.
"The sO-called treasury reserve of 500,
600 600 of gold has no warrant in spe
cifc legislation, although its proprietN
has been indirectly recognized by con
gress, and yet there is a supreme conn
dence that no impairment in that pro
vision will ever be authorized or sane
toned by congressional action. The only
real difference, then, between holding
these government notes in separate
department and their destruction is
difference which could at any time b'
covered by Legislative action.