Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1897-01-28
MAKE MOVE.

rency a writer OF "Currsncy
Elasticity proves clearly by a
series of diagrams, we r told,
that in the case Of the Canadian,
Scotch, and Irish banks, English
joint-stock and private banks,
bank of Denmark, Bank of Aus
tria- Hungary, Swiss and German
banks, there is an almost perfect
adjustment of currency supply to
currency wants; while other Con
tinsntal systems are not far be-
hind.
The New York Journal of
Commerce., in commenting on
this, says:
Turning to the United States,
however, we find precisely the
contrary. Not only r the banks
unable probably to expand their
circulation when additional cur
rency is required, but they actu-
ally find it most profitable to do
SO when money becomes more
plenty and rates of interest fall.
The result is a circulation almost
constant in amount as compared
with the more elastic systems pre-
vailing in other countries"
As far back as 1890, Secretary
of-the- Treasury Window recog-
nized the great evil in u cur
rency system above pointed out,
and in referring to it in his an
nual report, said:
"In my judgment the gravest
defect in our present financial
system il its lack of elasticity.
The demand for money
in this country is 50 irregular that
an amount of circulation which
will be ample during ten months
of the year will frequently prove
so deficient during the other two
months as to aus stringency and
commercial disaster. The crops
of the country have reached pro-
portions SO immense that their
movement to market in August
and September annually causes a
dangerous absorption of meney.
The lack of a sufficient supply to
meet the increased demands dur
ing those months may entail heavy
losses upon the agricultural as
we'll as upon other business inter-
ests.o
Surely in the light of the ex-
perience of countries where auto-
matte systems obtain and work
safely and satisfactorily, Con
gress ought to be able to reform
orr currency system along lines
that would meet the necessities of
the agricultural community and
the general business interests of
the country. Indeed, from the
various ssautomatic' or elastic
systems in vogue, Congress ought
to be able to evolve . system
much more satisfactory and much
safer than any one of them.
Nay, more, we risk nothing
in amending our propositions and
making them much stronger. We
risk nothing in saying there Is no
doubt as to the ability of Cons
greas to give us'the currency re-
form needed, and without which
it is idle to look for general and
permanent prosperity. 1t would
be a grave reflection upon the
brain of Congress to assume that
with the facts regarding the oper-
atoms of the elastic system in
Canada and Europe before it, with
the advice of the business bodies
of the country to draw from, and
with the dem enstrated glazing de-
fects of our present currency and
banking laws staring it in the face,
the body is unequal to the tssk of
solving the currency problem,
even more effectually than it has
been solved across our northern
border and across the ocean.
The plain truth 10 that it is not
a lack Of congressional ability
but, rather, = lack Of congress
sional inclination, that stands in
the way of the country's being
gwen q safe, sound, elastic cur
rency, and . monetary system
based on business experience, and
which would adjust itself to the
iuctuating demands OF business
and agricultural conditions. Our
present banking and currency
laws. owing to u well under
stood. have long since practically