The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-08
FINANCIAL LEGISLATION.

HE opinion is expressed that the passage of the
Hull bill, reafirming the gold standard and
providing that greenbacks redeemed in gold
shall stay in the treasury until exchanged for gold
will meet all the requirements of financial reform OF
this, however, there is very grave doubt The
country knows that gold is already the standard The
of 1873 says that the gold dollar 258 grains in
weight, goo parts fine, shall be the unit of value :"
OF the term standard" is not employed, but
that is because unit" is scientifically correct
and it means the same thing. This being true, the
only change introduced by the proposed bill is in
retention of greenbacks, gold redeemed, until asked
in exchange for gold There in existence $780,
100000 in greenbacks To preserve the gold unit of
value when presented at the treasury they re-
deemed in gold, and then, according to existing
law, they must be ressued-that is to say, they
Immediately reprinted and paid out to meet the ex
penses of the Government This device was provided
in order to prevent contraction OF the currency, and
it is responsible for the endless chain" which has
several times threatened the treasury with insolvency
and nearly compelled suspension of specie pay
ments
1t will be seen that the effect of the Hull bill is to
contract the currency 1t is entirely possible to
Withdraw gold from the treasury to the amount Of
the entire greenback issue OF $34ooooooo and under
the proposed act this would lock that up to stay
gold, something rather improbable to occur. This
would be contraction of the currency and drainage
of the gold from the treasury at the same time
The report of the condition OF the treasury the
31st ut will give an idea of what this would mean.
At that date there available cash balance of
$2o2, o3o626 and the gold reserve $228,74oo75.
Therefore the presentation OF the outstanding green
backs would have taken the gold reserve all out
1t will be seen then that all the bill proposes
is this change in handling the greenbacks, and it is
gravely doubtful whether, standing alone, that change
is at all desirable. 1t is the belief OF all the sound
money people that efficient reform requires the pro-
gressive retirement and cancellation of the whole
greenback issue as rapidly as it be replaced by
flexible and safe paper currency, issued under legal
safeguards in addition to those already provided by
the national bank law, and with redemption provi-
sons that prevent it from menacing the treasury
and imperiling the public credit. Such system is
free from the objections which lie against both the
present law and the Hull bill. AS framed by the
Monetary Commission of the Indianapolis conference
it has other features that desirable from financial
and political standpoint 1t will put banking facilities
within reach of more of our people, who can then
use their credit more economically than 1t will
enlarge the opportunity for the use of personal
credit and will materially decrease the necessity for
mortgages The rate of interest being the same, the
man who is compelled to his credit by mortgage
is at disadvantage, for he must pay for drawing,
acknowledging and recording his mortgage, and
also for an abstract of title Bad business habits
inculcated by resort to mortgages. The money is
usually taken on long time, and a farmer will spend
the profits of many intervening good crops with no
thought of putting by sinking fund to bear at last
bad crops prices and concurrent maturity of his
mortgage. With system of banking which puts
the loan fund of the country within easy reach of
the farmer as of the merchant and manufacturer he
will borrow less on short time and provide to pay it
at maturity and will have the of his credit more
cheaply and in way that enforces better business
habits
All this is part of the financial reform required by
sound money men, and it is far from being furnished
in the Hull bill
Relative merits of REGULARS and volunteers at this