The times. [volume] (Richmond, Va.) 1890-1903, 1899-09-21
THURSDAY. SEPTEMBER n. 1899.
r,lr- Nl.rn oF mn NATIoN.

TuE NEED OF THE NATION.
II the "money squeeze in Wall street
shall result in opening the eyes OF the
people 10 the necessity for currncy re-
form. II will not have been In vain. The
rovsnaners OF every political shade have
been talking about IT, and fnanciers are
hro,sh, face 10 face with our wretched
currency system that they may see il IN
all its imperfoctlons.
One Of the best articles that we have
seen on the subject is from the New 1ofk
Journal Of Commerce. The Journal OF
Commerce Is not a political organ ana
does not cater 10 this or that party but
&c a trade journal which deals with the
questions of trade and finance from an i'm
Partial standpoint. its articles are not
oolored by partisan prejudice, ana are
therefore the more reliable. Moreover
the editor who writes IT'S articles SITS
under the shadow Of Wall street and Is
in a position TO ascertain the exact facts.
In the article to which we refer the
Journal of Commerce calls attention 10
the fact that in 1873 the bank circulation
stood at s3io0o0oO0. but now, notwithstand-
ine the increase Of IS per cent I'm popu-
latlon during the interval, the volume IS
only about co per cent. Of what it was
then. In 1873 the bank notes outstandmg
constituted A. per cent. OF the total stock
of money: to-day. the proportion OF that
form of currency to the whole stock is
only abou 10 per cent. TO present the
same fact in another light tweniy-siN
years ago the bank issues were IS per
head Of population; now they are 50
per head.
This does not mean that the volume OF
money in the country has decreased.
Quite the contrary IS true, for the total
amount Of money per capita of populo-
ton has doubled within the period named.
The Journal Of Commerce assumes that
the present stool, Of an kinds of money
is quite commensurate with abe average
requirements Of business. This is admitted
by the most astute nnanclers Of the coun-
try. The fault with our present system.
therefore. IS not here. 1.-The evil OF the
existing situation" says the Journal Of
Commerce. SIS that We have no elasticity
al any point Of our monetary system.
The volume OF government paper and Of
silver and silver certificates remains un-
changed from year 70 year. while that
OF gold is unamenabie to regulation
Hence "ihe only point al which accommo-
dation TO the fluctuations Of business
wants Is a conceivable possibility is in the
note issues Of the national banks
our contemporary then goes on 10 show
how difficult 1t Is for the country TO get
currency from this source for the gov
eminent has apparently put every ohsta-
Gle in the way Of the national banks
with a view TO discourage the issue OF
bank notes. We need not go into details.
Everybody at all familiar with the sub
iect knows that 81 is not profitable for
national banks to issue notes beyond
certain point
Nor does the Journal Of Commerce be-
lleye that the complete remedy Is TO be
found IN the proposition 20 allow national
bank issues up to the par value Of the
bonds deposited as guaranty IL says
that the banks would probably increase
their issues to the limit Of the new au-
thorization: but that the old causes Of
inelasticity would remain unchanged.
There IS but one remedy, and that is
clearly indicated in the concluding para
graph IN the article. We quote:
We have now before our eyes con-
dition Of the money market which recurs
every fail. illustrative of the evil results
Of this lack OF elasticity. For three
months The metropolitan banks are SUBJ
Sect 10 a demand from the interior banks
for thirty TO forty millions Of currency.
The cash has TO be furnished. for the
most part. In the form Of lawful money;
aud the consequence is reduction IN
the legal reserves which creates sifiD-
rency, artihcially advances The rate Of in
terest, and compels violent contraction
of loans with injury to all interests pro-
portioned TO the wants and necessities
Of borrowers. An this disturbance is sus-
ceptible Of easy remedy, provided the
banks be permitted 10 issue their notes
upon convenient and rennunerative condi-
tions. The fall wants OF the West and
South could then be satisfied by notes put
out for the emergency; the lawful money
reserves would remain undlsturbed; the
rate Of interest would continue steady:
and these periodic commissions would be
avoided.
The full meaning OF this is that the
government should retire from the bank
ing BUSINESS, remove unnecessary restric-
lions from both national and State banks.