New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-16
CURRENCY IMPROVEMENT.
FEWER GREENBACKS AND MORE Ma
TIONAT. BANK NOTES DESIRED.

| To the Editor Of The Tribune.
Sir: ! am under the impression that many
! Republicans members Of Congress and others.
/ have not looked with special favor on the idea
OF now adopting any plan for remedying ex-
listing currency defects. ! am Of the opinion
that one Of the great elements producing our
success in 1896 was the fact that sound money
end steps 10 improve our currency conditions
were expected Of us by large number Of voters
outside Of our own party. I mean the Demo
Gratis who broke their political ties and voted
directly for ticket.
I have carefully considered the arguments urged
against the withdrawal Of greenbacks. but fail
to be at all convinced by them. II we get rid
Of the grecnbacks. we still have 10 care for the
silver and Treasury notes Of 1890 be sure,
but we are so much better off by the lessening
Of responsibilities. II will be certainly
easier 10 for the amount Of S9OS.pD,rD
less 1916 OOoOO than the whole. Besides as
the silver certificates may and probably VIII he
largely small notes they will be less easily
gathered TO demand redemption than the United
States Treasury notes are now.
I am sure the creation Of a large number Of
National banks on liberal plan Will help the
situation very much. and ! would not wish 10
withdraw the notes now out any faster than
their place ia taken by banknotes. or by the
increased production Of geld ION account of
the cry Of contraction | say production OF
gold, that sort OF expansion Is what
| would like in equal greater amounts
than Withdrawals Of greenbacks as being
Of far superior quality. and the substance
OF things hoped fof fact and not fat or
faith. II seems 70 me that party we cannot
go before the people with promise fulfilled
as to the currency. With fair bill much like
the Monetary Commission plan. made little
easier as to tax on account Of currency issue
between 60 per cent and so per cent say reducing
the to per cent per annum. and calling
only for | par cent per annum FOR the safety
fund until the amount Of > per cent Of capital Is
reached for that purpose. then stopping until
failures shall call FOR further asses sments. which
can then be resumed until again the , per cent
"a reached, there might be fair profit In the
business. and there would be great help toward
saving the country from pancs to gold. al
ways bearing in mind that in emergencies the
Government would have much less and the
banks more to do In furnishing gold.
am fully Of the opinion that It Is OF the ut
most Importance that our status as a god,pay-
ing people be well established before the world,
nor do | at all agree with any silver man as TO
t!metaIsm having existed when there was
divergence In value of the metals from the estab-
llshed ratio. In my own life since 1924 have
seen no time when real bimetallisn existed In
the United States; first gold was too oheaply
valued; then came a change. 10 keep II az home
but even then we saw only silver. composed OF
Mexican and Spanish dollars and 1ve-franc
pieces: then came 80 and gold and silver
until the war; then metallic currency: then
gold. which would have been rapidly displaced |
By silver except for the power Of the Govern
a. q I IN, ruin
humbus any one as to any possible blmetallism. |
nothing could possibly maintain that system |
but unanimous obligation of all the great |
nations to hold silver up by agreement sim |
liar the Latin nations contract. and without |
limit to amount and time.
one great reason why l am anxious to have |
a safe and liberal banking bill passed is that I,
see in 1t a hope that our Southern friends who |
are anxious to have more bank capital may be |
gratifed I. Is an undoubted fact that National !
banks have been 80 vIlihed by many dema-
gogues that many If the Western and Southern
people really believe them 10 be engines Of OPP |
preston and you recOllect that ii urged |
by the Democracy in 1892 that State banks
should he established and the United States 10
per cert tax their circulation be removed. |
Now by such bill as the Monetary Commission
offers. these people may have currency without |
the, them. odous idea that the bank was
drawing interest twice, once on United States
bonds and once on banknotes lent. No argu-
ment that be used in favor Of the State
currency except State rights of sovereignty
be urged against plan Of this sort.
Now as to IT'S safety II NcW-York had such
a currency for thirty three years with much
larger freedom as to amount Of circulation and
no liability OF stockholders. and OF he 81 .S76o63
paid in to the safety fund the sum Of 1927 .5o5
should have been left 10 return 10 the solvent |
anks remaining after paying up all the broken |
bank currency with only tax Of y per cent
FER annum). provided that the fund had been
appropriated only FOR the currency. II seems TO
me that with tax OF even II per cent per
tnnum we could safely take the step Of such an
ssue OF currency with added respons bty Of
stockholders equal 10 the amount Of their stock
and constant supervision Of officials by proper
and unexpected examinations.
l. however. am not inclined TO favor the can
'eling Of nifty any millions Of greenbacks, as
have before stated until the amount TO be
withdrawn is made good by the new bank cur
'ency or by the increase Of our gold coin
| prefer that the banks should redeem In New
York but If any second place is 70 he named IL
should be at the banks counter But redemp-
ion in Washington has been the rule hitherto
md | see no need ~ change. unless IL be 10
make 1t NewYork which Is the financial centre
Il the country 1t is not wise TO try TO make
'anks redeem In different places
! no sort Of objection 10 the issue OF gold |
notes Of say $50 denomination and upward;
hey just valuable to the holder as tho
DIN. and their use saves an immense aggregate
4 loss by abrasion. little time since sent
~ $4,000 Of carefully selected twenty-dollar |
pieces To the Treasury get currency and al |
hough great pains were taken 10 avoid loss |
till SOD deducted FOR light weight The |
manager Of The Bank ~ Scotland once told me !
hat he ordered ten thousand sovCreirns up 10
edinburgh from London: the box was never
peneG. hut sent back received and still there |
loss OF SO FOR wear on the trip.
AS | have before said. do not think II at all |
necessary to pay In per cent OF total circula- |
ION al once for the safety fund. Tut that a tax |
f per cent per annum on amount 80 notes |
sued until the total sum should reach = per |
ent II notes Of each bank out. with an ar
engement 10 equalize the latter organized |
anks with the old ones. would suffice |, how
yer would wish 20 have the safety fund liza |
ltv limited TO the amount " | per cent per |
mum I'm the aggregate and that all the banks
houd not be considered one great corpora
ton. am that r. per cent per annum is
noneh unless the world has grown much worse