The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-12-30

becomes evident that ssss Only mes.sos b.
which We can tasare thai, ~h&ss Isss "a
sofnEsse conditions areS- there sszaE &C 10
recurrence 81 the disasters formerly exps-
rsAsce5 IL 20 bring skcus SOME s1crs or less
fundamental changes 10 tsse monetary sys-
ten steess
The se~nrfty of the standard
ssrEsser existing conditions the ossy wise
aa1 csnssssefs ssgslcy Tor the United states
il IRE frank recognition " the fsES s1st
ssse ar.aa. monetary .sarSsarG Is nos. and
fer scrse .lsEe TO cnnse Siii b. god zrd
tks adoption OF legislation Maicn VITAL ~
sfsr@ ssg ss.ssre ssansisfy ~ that standara.
until such time as the nation may have de-
sss.ea 70 ssEzasiSE some other. Asseof 20
f1ss statement does EGs commit any ose 70
TIE p1sstlan that tsse gold standard -, a.
ssEzesiy considered. the E1zt sseSsrahls 0sae-
a. Is Wei xU0wr, = large nunntsr os ees'1-
eEssste aos5 10 tns opposite ogstasoEs- BY
a. ~ also wssa KNOW, tas particular ssis-
ssItuse wasefs s1sch economists favor. / ..
fnssrrsa toYai hE-gssefaIissua. Is at prevent.
ard fer a long tsnss vii b. cut % TIE
question. Isl consequence. the precise form
which th@ question of standards Do@ taxes
In ssse United States is as 10 whether the
currency snail rest on gold fsasis or on
silver or apsr assss. Thus stated. it eaG
have. 70 TIE Tna}SFsfy Of economists, s.at
cue solution. Under existing conditions.
the gold standard IL. for the United States.
the nssr available. Tsnts being the case
II IL the duty cf the nation 20 render .aa.
standard stable as possible and % re-
ard lis easy working: FOR uncertainty as
10 ttse basis OF the currency must always
BE- menace 10 prosperity.
With respsc. 10 the means through
which Increased stability for the STANDARD
shall be Insured II Is hardly TO he doubt
81 tina; much would BE- gained by its sx-
p.ic3t dsfinltson In terms OF gold, san
more important would be the enactinZ Of
Such legislation shall insure that the
task OF msin.etatrg the standard, or. in
1fher worEis. ~ rfainta.ning the conyertt-
Kessa - -
shah De efficiently performed. AT this
pom: your committee find themselves in
accord with the commonly received opin-
len. fssat. under normal conditions. the
task IN question car most advantageousiy
be ieyo!seG upon seine institution or snsti-
futions Of a hankfn. nature. We are also
agreed. trough perhaps less positively.
must prevail in the United Ssatee, this
same golusson Of the problem is, on the
Whole. Lsst H. however. this plan shah.
tanning the ssaniari OF value is still 10
rest upon the treasgry-everything caicu-
lated to make that task an easier one
should be done, and the department should
be- specially organized with reference 10
the duty thus devoiysng unon Ii, and pro-
y.5ed with such additional powers are
necessary te insure its fitness for the work
3n hand Among the various changes
which would tend 10 the accomplishment
az these objects. your committee believes
the most important to be soms modifica-
duties or the treasury as respects the
management OF the monetary system OF
the country shan he SEPARATED from those
functions which are 81 purely fiscal ma
ture. II wonia doubtless be well. also. to
find n place for silver where II will cause
east trouble hy retirng all notes Under
tire. at east temporarily, notes which have
been once redeemed.
The BANKING SYSTEM.
"A, Observation-Disclosures decision may
he reached with reference To the much
disputed question "a 10 whether United
States legal tender notes shall continue 10
hold their place as part of the paper cur
reaey OF the country, II 10 certain that the
sues Will be Indispensable. The system
should, without doubt be under Federal
control. and should take such form as %
Insure much greater elasticity than exists
In the presen, system. provided always
that the security Ct the Issue shah be in
no wlse impaired
"As respects the method 10 be employed
for attaining this needed increase In eias-
.iciiy, IL Ia sfistvsd that che reasv sue
ccssfal che must involve issuing same
portien Of the circulation upon ordinary
banking assets. The chief reason for this.
ma already indieated. Is that such orii-
nary banking assets are the only ones
which are universally and readily avail
abe when expansion Is needed. The si-
rerlority Of such system is further In
sgred By the fac. that there IL very
close correspondence between the anoant
banks and the need ~ the community for
currency: since these assets. Ike the need
for money. vary IN amount with the vol
utna OF business. As respects the security
OF such notss there need he no anxiety.
provided the system II supplemented with
The cevice OF Fefesy fund. or with ono
which have been proposed II II be urged
that nothing can make this system really
snfe AT least for the banks considered as
guarantors OF each others notes so long
n q gp q Or va
based remain In the custody OF the issuing
bank. the objection might he me, by en-
acting that notes Of this character shall
be issued only through clearing house as
s0csatious, which are 10 hold IN trust the
commercial paper or other collateral by
which the notes are secured. Just as they
now do fin the case 81 loan certificates and
as the treasury Of tho United States does
An the case 81 national bank notes
'ft NAV however. prove impossible TO
secure legislation Of the character de-
scrihei. In such event the existing sys~
tenn % rotes based on United States bonds
should be 50 amended as 10 give TO 4 as
large q measure OF elasticity as 10 POSSIBLE
The provisions OF the Inv Of .SS2 which
limits she amount - notes that may he
retired tn any one month. enf prohibits re-
issue within SIX months after retirement,
should he repealed To secure IN some de-
gree that increase In rroftsah'eness which,
"a saw earlier. is Indispensable -
elasticity. II would 10 we'll 20 raise the
ratio ~ notes Ia bonds deposited and 20
lower he tax. Dr better STIR. 20 levy e
on capital and surrins In order stiii fur
Their 80 enlist the neif~interess ~ the hanks
especially on behalf az the promnt retire
Daert ~ redundant. notes. we should fs In
o,sned TO rrohshll any bank from paving
cut ,be notes % any ether bank except TO
tac i~suer or 80 tbs redemption agency
A. respects making "a Fler the processes Of
expansion and contraction. some gain
~oa..t probably Result from requiring the
csnussgiisr 10 keep On Aana u supply x
| notes in blank. and sttl more fren an tn
crease IN ths facilities fsr redemption.
"a Country banking A. already re-
marked. there Is real iced for in
ERASED banking and currency facilities
| IN Ehe newer ~ more backward PARTS
/ - ihe country. and legislation could 10
| something towards satisfying this need In
| taa Judgment 81 your committee, the most
, effective weil rs the sa(est rSpeesent fer
| accomplishing ta.s ohtecs - some system
| og branch banking similar rs those in s0gaw
/ in canada. Scotland aDi ether countries.
| Under such a system banking "a -i1ities can
/ - furnished 20 cammuHfsse@ tcO SguAu "a
| support even ftse Smallest independent nzAk
| az issue, assd SNpits} cap - most cheAcIy
| ara easisv transferred from districts ever
| supplied - those needing q. Nhjls. At she
| Same time t8s dangers ar su1 OF EaiS-
| management igcAt"at tu All banking arr
| "a lsaS sHTsGaS ffs.H Gllief ; system of