The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-03

lie uses, is at the same time absolutely
just and also furnishes an admirable
means Of regulating the volume of
currency and making it rise and fall
with the demands Of trade. To this
end 1t is provided, on all the notes
amounting to more than 60 and not
more than 80 per cent Of its capital,
that the bank should pay tax Of per
cent per annum, and on all notes in
excess Of 80 per cent it shall pay per
cent to the federal treasury.
A glance will show how admirably
such a graduated scale would work in
practice. When the demand for money
was brisk the bank would find it profit
able to put out notes and pay the 2
per cent tax. When the demand be-
stringency, OF when money was need
ed to move crops, the bank would find
1t profitable to furnish the notes and
pay the 6 per cent. The instant that
demand slackened and notes began to
pour into the bank In payment Of it's
1t could not afford to pay either the
per cent or 2 per cent on it's own bills
locked up in its own vaults These
notes, therefore, would come into ex-
istence in response to a general de-
mand for more money, and would
hasten out of existence the instant
that their mission was fulfilled. This
secures an automatic elasticity and es-
tabHshes an accurate and permanent
relation between the volume Of the
circulating medium and the demand of
trade for money that has never exist
ed IN this country, and that could not
be secured in any other way.
We ask the people to note that,
among the eleven members of this
commission, not one man Of whom has
the slightest leaning toward financial
heresy and all Of whom, both Demo
Gratis and Republicans, are committed
TO sound money in the EXTREMIST sense
OF that term, there is no voice Of
dissent as to the feature Of the renort
which advocates a scheme that within
hVe years would place the United
states upon basis Of absolute free
banking. 1t was we'll worth while to
go through the difficulties and dangers
that we have only partially passed to
get TO this conclusion. The impossi-
blllty Of continuing federal issues of
money without landing in the bottom
less abyss Of unlimited fat paper has
brought men back to the sound con-
v1ction that the issue of bills like
every other business transaction. can
be confided safely only to the natural
and recognized agencies Of the COM
mercial and financial world.
Let the banks look after the
furnishing Of credit and notes.
as the railroad authorities look
after the transportation facilities
and the manufacturer and merchant
after the demand and supply of the
necessary commodities Of life. Insure
thelr correct conduct Of the business
by proper safeguards and penalties. tax
them for their privileges, make them
supply. tEeir own guarantee and then
leave the great trade forces. ALWAYS
working like changes Of seasons. to
regulate and determine, as thew will
infallibly, the volume of credit money
outstanding. Whatever congress NAV
or may not conclude to do with other
features Of this report, we believe that
an assertion Of the maintenance Of the
money standard Of the civilized world
the creation Of division Of issue and
redemption in the treasury department
and the establishment Of a. banking
system on the basis set forth Would
practically settle the financial question
for all time to come
If the public interest can be turned
away from the phanta,sm and Will-o'-
the-wisp proposition Of the free coinage
Of silver, intended in all good faith, we
believe, but hopeless Of reaching the
result aimed at, and be concen-
trated upon limiting the functions
Of the government to the definition
and maintenance of standard and the
coinage Of metallic money, and to
guaranteeing an ample, safe and elias
tic currency Of credit money, 1t will
mark one Of the greatest and most sal
utary advances ever made in the legis
lative history Of the country.