The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-03

that We have named therefore contribute
all OF the debt due by the government
| that can be converted into backing for a
| bank currency and TO turn all OF these
into such n backing would involve con-
vertlnv the $500 900 600 OF greenbacks and
Treasury notes that bear no interest now,
into interest bearing debt, which would
be a pretty expensive way Of securing the
doubtful luxury OF national bank note
circulation.
But II this should be done. we should
then have about 81 2O0,OOO,co0 Of interest
hearing debt upon which TO found our
currency system. In other words We
should have to contemplate that the
country could, in no event. have paper
currency exceeding the sum Of 81 200, 900
900 we have now including silver certih-
Gates, about 81 ,1OO.0Oo,Coo and from every
part OF the country come complaints that
our currency supply Is insufficient. our
own opinion IS that II is ample for the
cities and thickly populated districts, but
there Is undoubtedly a great need for
more currency in the agricultural dis
tricts.
II then we are TO adhere 10 the theory
of bank currency built upon the nation
al debt, It is obvious that however much
the country may grow, and however
much its needs for currency may In
crease, we can never give It any more
currency than it now has. plus existing
bonds. unless indeed we determine upon
having the luxury OF a great foreign war
TO add to our national debt the necessary
bonds for basing more currency upon.
All of this suggests that If, as the world
has always supposed, a national debt Is
a national curse, then this foolish idea
Of ours that our currency system should
be founded upon our national debt, is one
Of the most illogical notions that ever
got hold OF peoples mind. We ought
indeed, TO pay off our national debt as
soon as possible, and then we should
have no currency system az all, If the
prevailing idea upon the subject is wise
one.
There IS another point involved in Mr..
Cages suggestions that is worth mo.
ment's attention. lie has adopted the
idea Of Representative Fowler, Of New
Jersey, that his reformed national banks
are TO issue what they call an emergency
currency. They proceed upon this theory:
These are times. say they, when certain
nary amount of currency, such as the
period when the South Is moving the
cotton crop and the West the grain. The
banks should then be permitted TO issue
Of p per cent. Of the bonds they have de-
posted 10 secure their regular issues,
and this extra currency is 10 be based
upon the general assets OF the bank only
put the government Of the United
States is TO endorse it. But the bank is
suing It is TO pay tho government tax
Of ten per cent. per annum Upon the
amount so issued during the time 1t is in
circulation. The purpose of this tax is to
force the bank to retire this emergency
currency as soon as it has served the
purposes Of the emergency.
This notion is based upon total mis-
conception of actual conditions. It pro-
ceeds upon the theory that the needs of
an agricultural community for currency
are only at stated times like that Of cot.
ton moving in the South. But these com.
munities need currency at all times.
There is a more pressing need for it at
such times. but there is a constant need
for 1t at all times to meet the emergencies
that arise each day. An agricultural
ccmmuntys wants are in no wise salts
fed therefore by such an ISSUE Of cur
rency as Mr. Gage suggests. 1t wants its
own banks with liberty to issue at any
time whatever currency its managers
see that they can prohtably use amongst
the people Of the locality, and the coun-
try will never be satisfied until 1t gets
this, its national and constitutional
right