The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-10-16
REPUBLICAN, CURRENCY
"NEEOnM.v

In another column OF The Post this morn
Ing will be found an excellent article on
tho fallacy and fraud of tho Overstreet
currency bill and tho committee substitute,
which the republicans propose to enact, II
they can as a reform OF our financial sys-
TEN. The main object is to withdraw all
other paper money than the National bank
by express terms OF law.
The National bank notes. under tho pres
ent system, and tho same character of notes
under the proposed system, will be as
dsssmilar In many respects as two kinds
OF money can be. At preesnt these notes
are amply secured by the deposit with the
government ot sl0G In United States bonds
for every $40 in notes issued. Their vol
time is thus regulated and the government
becomes security for their redemption. I'm
der the present policy any one of these
bGnk bills is as good as gold. How will
they stand under the contemplated ire
form" Banks are to be permitted to issue
notes to the extent of 800 for every $50 in
bonds deposited during the first five years,
but after ten years, by terms OF the bill
there Will be no bond security deposited
and tho issues will depend for vulue aud
strength and public confidence upon a
per cont guaranty fund and pcr cont
redemption fund of which the government
will become the trustee
In other words. now only 90 cents in
money is issued for every 81 in bonds and
the government holds the bonds as security
for the redemption OF the notes. Under
the committee plan. for the first five ss~,rs
81 in nntes can be Issued for every dollar
of deposited bonds but after ten years
the security for redemption viii fall from
this 2I por cent bond deposit TO 10 per
cent furd held by the government
Is 1o per cent OF funds. of which the gov
eminent Is u mere trustee, sufficient So
IoLrity for q circulating medium put ou.
by the banking corporations OF the coun-
try? The National treasury does no,
guaranty the redemption OF these notes
further than as 1t holds the 10 per cent
fund. AS one dollar In bonds Is now do.
posted for 90 cents issue OF money, IL
win be eoen that tho governments crcdl:
ana security for the future paper money
ls to be decreased Just 100 per cent--tha,
is to say wiped out!
Here then we viii have a money with.
out any intrinsic value whatever and baned
only on tho banks assets" The banks
failure, with worthless assets. would mean
the destruction OF 30 per cent OF It's none,
In circulation, A panic. with hundreds o.
banks hopelessly involved. or with fraudu-
lent and valueless assets, would mean IN,
destruction nc one blow OF millions OF tn,
money In the hands of the people.
II the banks should undertake. MS thoy
have repeatedly done in Now York. Boston
Philadelphia ANA baltimore for example IL
1873. 1854, 1890 and 1898. to suspend pay.
ments and issue clearing house certificates
the result would be rapidly deprecated
I paper currency!
, The whole scheme Is n mutually dlshon.
Q est one between the banks and the govern.
: ment to do away with the deposit OF bond.
0 for bank notes and yet retain the priyllec,
to the banks OF making our paper money
I while relieving the treasury of the burden
OF madntalning the gold standard, or OF
d sianding security for the bank notes!
Z Beside this nefarious pIan which IN.
E banking and currency committee of the
mousse are ready to ask congress to naon,
Q as the republican currency reform, mems.
ufe' free silver coinage would be as the
rock OF Gibraltar to shifting sand hank
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