The River Falls times. [volume] (River Falls, Pierce County, Wis.) 1894-1933, 1897-12-07

7uasbinoton. Dec. THE annual report
Of James H. Eckels controller OF lne
CURRENCY, for the year ended OCT o. Ioo1,
opens with a brief review OF the hlstoLy
of the legislati ton which CONSTITUTES ny
nreS ent national bank act, ana lnVltes tie
attention of congress TO amelul ln'.o. -
the law recommended in former reports
without specifically repeating them. On
the subject of bank note circulation the
controller says:
eft is noticeable that in all the changes
which have been wrought III the natlollal
currency act from its inception 10 the
present time, the feature subject 10 crltl-
cisn but which was intended should con-
stitute the principal benefit to be con-
ferred has remained comparatively I'M
changed, namely, the note issuing Iunc-
ton Whatever justification there was IN
the first instance for restricting the lssu-
ing of notes against the bonds of the
government, deposited with the treasurer
of the United States to 80 per cent or the
par value thereof, has lolg since ceased.
In the report of every controller OF the
currency during the past twenty years
the wisdom of changing the existing law
so that the banks, and through them the
communities in which located, might
have the additional benefit of the added
loanable 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
congress should seriously consider such a
change in the method of
Bank Note Issues
as will enable the banks OF the country
to more adequately meet the demands
of trade and commerce in all sections
of the country. The business of bank
ing, like every other form of investment
must be made attractive to capital II
it is placed upon footing different from
other undertakings, embarrassed tnroLgn
unnecessary restrictions and deprived of
proper sources of profit, the result cam
MT be otherwise than that capital for
investment will seek other means of en-
ployment. and to such extent deprive
the people of the benefits of the agency
most requisite to commercial activity.
ut is considered by every great COM
mercial government except the United
States to be the sole province of the
banks to issue the paper which circulates
as currency. The belief in a bank note
currency being better and safer than
a government paper currency prevailed
unquestioned in this country until, under
the apparent exigencies of the war, the
government undertook to issue paper cur
rency. Even under such circumstances,
the promise was always given however
that it should be retired at the earliest
practicable moment and the admissi IN
freely made that it was neither a wise
measure nor a safe form of currency
Between the competition of the govern
ment note issues on the one hand and
the unnecessary restrictions imposed by
law upon the other, together with the
increasing price of bonds required to be
deposited as security, the nOte-issuing
function of the banks has been permitted
to become merely an incident to the con-
duct of the national banking assccia-
tons of the country. 1t as been seri-
ously suggested more than once that the
bank note issues be done away with
and all paper be issued by the govern
ment instead. The
Danger of Such n Course
is not to be oyerestimated. The expe-
rience of every government has been that
governmental currency paper is source
of weakness and danger. In the United
States, where there has been the nearest
approach to success, With the volume of
the federal paper comparatively limited
in amount the credit of the government
has been more than once put in Jeopardy
through it and the business interests OF
the country subjected to unnecessary loss
and confUso
1.-THE argument that the government
better than the banks can provide for
the redemption of paper note issues will
not stand the test of careful analysis
The government has no means for caring
for it's demand liabilities, except through
borrowing ana through the levying OF
taxes. Upon The other hand, the banks
nave assets which can be promptly con-
vcrted into cash to meet their outstanding
notes WHEN presented Their ability to
command gold has always been beyond
that of the government, for in each finan-
cial exigency which has confronted the
government the banks rave furnished
to it the amounts necessary to maintain
it's solvency. It is impossible to believe
that with system of bank note issues
based IN part upon securities and
IN part upon bank assets the
country cannot be provided with
sound, safe and elastic bank
note issue, always commensurate with
and responsive to the demands of trade.
The Bank of England, the Bank Of Scot
land and the Bank of Ireland have beer
found to be ample in their resources to
provide the note Issues for use in the
trade of the United Kingdom The Same
IS true OF the Bank of France The
Deutsche Reichsba nix, or German Imne
rial oank, has for more than twenty-five
years issued bank note paper against
assets which has maintained its value
ana has been so controlled as to success
fully meet the commercial needs Of Tin
empire A
The controller calls attention RI +b.
method of organization of this banle ana
connection theT eWith -
The report contains the latest co-,,,,i,o,
statistics relative to the worlds voo,,
tary systems and the stock OF gold Ell
yer ana paper currency. very interes4
iEE feature Of this statement is tha ner
capita amount of each kind Of money in
the countries named The NOR oay;t 80
averages in the principal countries os nc
world are as follows: United Statas
S23l0 United Kingdom $50 65. Ero,,oo
{S46S; Germany, $1S95: Austria H.
gary, 1888, and Russia $500. The con