The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1898-01-15
Concerning Currency Reform.

shall prove true that the next great
dividing issue in American politics will
he upon the question whether the gov
crnment itself shall assume control
wholly of the issuing of paper money
or remit that function wholly to the
banks: then, indeed, will there he
radical realincment, such perhaps as
has not before been seen. With the
tariff question answered, it is be-
lieved, for generation as regards es-
scntial principles. there is opened
clear pathway to the settlement of this
problem. that has in some form or
another ncrplcxcd our statesmen al
most since the Republic began; and
indications multiply that a period of
contention over the matter is at hand.
The favorite argument Of those who
oppose an extension of bank currency,
or. as is more generally the term, op-
pose the retirement of the grCcnbaCk,
is that under the constitution congress
has no right to delegate to the banks
a function which implicdly belongs to
1t alone. Clause of Section of the
first article Of the Constitution en-
powers congress to "cOin money and
regulate the value thereof Able
men have held that in these words
there is implied a sovereignty over
everything performing the office of
money which cannot he RENTED to
another agency. Even if it were de-
sirable to permit the banks to take sole
charge of the country's paper currency
these men assert that congress would
have no authority 20 do it, and they
further contend that bank control of
paper money would he unwise from the
standpoint of public policy, since it
would put in subjection to banking in
terests every other business interest in
the country; that is, by controlling the
paper money of the country the banks
would virtually control the country.
This view Of the subject has been so
persistcntly disseminated throughout
the Republic that political campaign
based on it would be likely at this time
to carry every state in the Union; yet
study and reflection will. We think. be
likely to convince the thinking citizen
that empowering the banks to issue
hank notes to the par value of their
approved assets, subject to such gov
eminent taxation and restrictions as
would be deemed necessary to protect
nOte-hoders, and also by making it
obligatory on each bank to redeem it's
note issues in gold upon demand. the
government would in no sense abdi-
cate it's sovereignty as the custodian
of the Countrys monetary standard
and the comptroller of it's currency,
hut would simply put upon the banks
the burden of sustaining each other and
relieve the government of further anx-
iety upon the subject of its gold re-
serve.
Under system such as is proposed
by Secretary Gage or the Indianapo-
lis monetary commission, the power
given to each bank would be very little
greater than it possesses at present,
but the increase in the banks respon-
sibility would he considera BILE. As
things are thanks to the endless
chain" the banks can make the gov
ernment supply them with gold when
ever they need gold; as things would
be, under currency reform, the govern
ment, or any individual, could force
the banks to supply gold on demand
by simply presenting bank notes for re-
demption. Speculative raids on the
United States treasury would thus be
stopped; new element of mutually
would be added to the banking busi-
ness, since a weak bank, by reason of
its outstanding notes, would force
strong banks to assist it through a
pinch, under the alternative of being
taxed by the government to make good
the deficiency should the weak bank
fail and it's notes fall into the govern
ments hands for redemption: and
above all else, there would he present
in bank currency safely guaranteed
by the federal government a degree
of elasticity and ready adaptation to
local needs not to be expected Of a
paper currency issued only by the CEN
tral government. .,ur.
We recognize the political ineXpdi-
ncy of forcing the currency reform
wedge on a prejudited public big-end
first; but among men capable of in
telligent, thinking now is the time to
set in motion the necessary campaign
of education which will be preliminary
to effective progress later on. r.-
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