The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-11-23

agreement among the pro-
Il phets at Washington that
the next congress will take
at least these steps in the direction of
currency reform:
/. A declaration in favor of a single
gold standard of money.
2. A provision requiring that green
backs received at the treasury in ex-
change for gold shall be withheld from
circulation unless redeemed with gold.
3. An amendment to the national
banking law permitting banks to issue
notes up to the par value of the bonds
deposited to secure them, and permit
ting the establishment of national
banks with a capital of $4,000 under
certain conditions.
These steps do not represent all the
progress that our wisest statesmen
think should be made. They do not go
to the bottom Of the difficulty as re-
vcaled in the recent monetary string
ency in New York city where, since
July l. over OOOO, 900 has been with
drawn from circulation, mostly to as
sist in the movement of western crops,
leaving business in New York adverse
ly affected. The third step would, in
deed relieve this situation to some ex-
tent by enabling banks to increase by
ten per cent their emergency circula-
tion; but it is doubtful if this margin
of increase would be sufficient, espec-
tally in a time of exceptional exports,
when the demand for money to assist
in the movement of merchandise Is ex-
traordinary and liable to tempt the
holders Of money to squeeze those who
must have it in order to protect them
selves from commercial ruin. The need
Of more elastic currency, one which
Will expand and contract automatically
in unison with the fluctuations of busi-
ness, will remain after the foregoing
programme shall have been inaugural
ed, and although it will not be so ur-
gent as it is today, it will be sufficient
to prolong the agitation for currency
reform until an ultimate adjustment
shall be reached.
But in politics half a loaf is better
than no bread. At the present time,
viewing conditions as they are, the
steps mentioned above seem to be all
that can be taken. They represent a
decided gain over the situation of 1894.
when the Cleveland administration had
to sell bonds to pay current expenses,
while the treasury was being pumped
dry by means of the endless chain. -
The amount of money in circulation
today is the largest that it has ever
been in the history of the United
States. On Nov. l it was 81 ,963 716,14S
or $3.50 per capita, estimating the
population at 76,7O0,OOO the treasury
estimate. This is a larger per capita
than circulated during the height OF
war. The top notch of that period was
reached in 1865 when, with gold at 14C
and 142, the per capita circulation was
$2O.57. The present per capita of $25. &c
is on the gold basis. every dollar of il
being interchangeable for a gold dollar
or its equivalent and for that reason
good the world over at face value
minus the ordinary cost of exchange
The only trouble today is that, in spite
of our enormous circulation, the volum,
of the country's business is increasing
so rapidly that either more money
must be provided or, what is equal tc
the same thing, better facilities mus
be arranged for the transfer of money
from places of reserve to places of ac,
tive investment. To do this is the
| mission of currency reform.