The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-11-23
FINANCIAL REFORM NECESSARY.

T is we'll not to lose sight of the pledge OF
| financial reform and the immediate necessity for
its redemption The measures have been well
digested and the next Congress should lose no time
in their consideration.
The only way in which the is to be closed
against the fatists is by legislation. The need OF
better currency banking system than we have now IS
felt at all times and in all conditions of trade. OF
course its weakness is not apparent in good times
as bad but that weakness is one of the causes OF
bad times, and the system contributes nothing to
good times, which come in spite OF it.
We have heretofore shown the complex nature OF
our financial systeni-a mosaic of emergency legisa-
ton It can best be reformed when there is emer-
gency 1t began during the Civil War, when the
Government was driven TO any and every exped1ent
in struggle for its existence The devices to which
man resorts avert destruction are never such as
he calmly adopts in promotion OF his interests when
no danger is present. The same rule is true OF ma
tons and yet we have adhered to expedients and
systems which adopted to avert national death
1t time to return to the ways OF life IN Our finances
The banking system proposed is largely that so
long known and successfully administered IN Scotland
and in Canada. 1t contemplates the extinction OF the
national debt and the end of using Government bonds
as the basis of safe paper currency 1t provides for
the gradual substitution of bank assets and the liza
and by arranging the taxation of such currency
sliding scale guards against imitation. The country
will never willingly return to State banks OF issue.
The convenience of national system, with its cur
rency of uniform value will not be given up by the
people The system proposed is, therefore, ma
onal under constant authorized official oversight.
All the banks contribute redemption fund to secure
the bills of any bank that may fail, and if this
prove insufficient the Government will assess all the
solvent banks to repenis it and keep the fund equal
to any demand upon it.
The system has every feature of security and adap-
tation to the public needs that the soundest State
banking ever had; therefore the advocates of State
banks of issue cannot find valid objection to it.
Those banks issued convenient paper currency,
which became a redeemable medium of exchange,
based upon bank assets.
If Indiana, New York Iowa and Illinois could sue
cessfully administer such system as they did before
the war, there is no valid why the Federal
Government should not do it The vast accu-
mutation OF experience in the running OF national
system also stands the Government in good stead, and
is reflected in the guarantees and security added in
the proposed change.
The great purpose of it is to put the surplus loan
fund where the farmer and planter may have cheap
and easy to it and economical of his
credit as the merchant manufacturer. There is
reason why there SnOulQ De Ql1erenCe III
rate of interest between New York and Texas, but
there is no good reason why that difference should be
as great as it is.
To approximate the rates of interest exacted for the
use of money and nearly equalize it between the
trading and manufacturing centers and the producing
districts in the country of the great objects
be accomplished by this legislation.
When the system is put in operation its existence
will not depend upon the payment of the national
debt and consequent withdrawal of bonds, as is the
case with the present national banks