Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-11-15
The CURRENCY SYSTEM.
Mr.. Horace White Submits His Ideas
to the Commission.
He is an Outspoken Advocate Of
the Retirement of the Green
backs and the Adoption Of an
elastic king Currency
Based Upon Business Assets.
His Plan in Detail.


Washington, November 14.-Mr.
Horace White, whose book upon Mon
ey and Banking" has attracted SO
much attention, has submitted some
clear cut answers to the interrogato-
ries of the Monetary Commission, re-
garding improvements in the currency
system of the United States.
Mr. White is an outspoken advo-
cate of the retirement of the green
backs and the adoption of an elastic
banking currency based upon business
assets. He declares that the silver dol
lars should be redeemed in gold and
in financial sense there is no differ
ence between the several forms Of gov
eminent fiduciary circulation of which
silver dollars are a part. "The latter,
he declares, "are metallic greenbacks."
He does not believe that the amount
of circulation presented for redemption
would be any greater than at present
if silver
WE'RE REDEEMABLE IN GOLD.
In answer to the 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 a first step. Probably
the silver certificates and silver dollars
would thereafter remain at par with
gold like the outstanding thalers Of
Germany, and would not be presented
for 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 to do next"
Question-For the purpose of facili
tating the use Of existing silver cur
rency, what do you recommend as the
smallest denomination of United States
bank notes which should be put in
circulation?
Answer-Ten dollars at first; but this
should be made
A NATTER OF EXPERIMENT,
the object being to determine the di-
mansions of the field of circulation
which will absorb the silver currency,
leaving the rest to bank notes.
In relation to the legal tender notes,
Mr.. Whites responses are as follows:
Question: On what grounds, if any,
would you favor the gradual but en-
tire withdrawal of the treasury notes
of 1890, and of the United States notes?
Answer: con the ground that there
is no certainty, and can be no certain
ty, that the government will always
redeem them in gold. Redemption or
non-redemption is a 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 a drawback to business pros
perity.
FAILURE OF REDEMPTION
would be bankruptcy, public and pri-
vate."
Question: If it shall be decided to
retire the United States notes, how
can it be done without adding to our
bonded debt?
Answer: "By cancelling all that are
received at the treasury for taxes or
presented for redemption, or all so re-
ceived over and above the govern
ment's necessary disbursements"
HI
provision be made for maintaining an
adequate amount of currency avail
able for purposes of business?
Answer: Provision will be made
automatically in various ways, viz:
"Q By retaining the gold produced
by our gold mines;
"(2) By importing gold from abroad
"(3) By the issue of national bank
notes. Prior to the civil war the gov
eminent gave itself no concern for the
providing of currency for the purposes
of business, yet the supply was never
deficient"
Question: If it be thought expedi-
ent to fund the United States notes,
HOW CAN THEY BE REDEEMED
with an assurance that bank currency
will take their place?
Answer: 1.-THE assurance is found
in the fact that in every case where
currency vacuum has existed it has
been filled by bank notes. This was
the case in the panic Of 1898. The pro-
cess of taking out notes might be more
expeditions. That is q matter of ma
chinery and of legal regulation. 1t is
perfectly certain that if there is q
profit in issuing bank circulation, it
will be issued. If there is no profit in
it, we must conclude either that the
law needs amendment, or that the de-
mand for currency is slight"
Mr.. White believes that in process
of time it will not be possible to rely
upon national bonds as security for
bank note issues because of the ex-
tinction of the public debt. In the reply
to the questions whether any
SAFE AND PRACTICABLE PLAN
can be devised for using other securi-
ties he says that he thinks not. Il
should not like to be charged with the
responsibility of selecting the securi-
ties or choosing between the different