The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-07
cent funded loan Of 1907 OF Of the per cent
loan OF 1904, at the current market price

impor,ntons n-,he preceding year in nnicipa.
, saa o. an increased tariff The ,Sp9tta,I,,pns u
S3O IN the fiscal year 1893. and Sl,O5o O93 BOD
IN lSo,; being the fourth year u our history in
falling bu, 10 oes below ihosr Of the phrnorc.
nv year 1893, when the supply of bread SUITS
nGr i,add was unusually short. and Tint OF me
foreign cnmmctr Tor the fiscal year 1899 thus
stands AT Sl02i III .70l. or S16i0l lSl greater
Our foreign commSrt Ss' has much more than
doubled since 1870, the total Of the imports and
e wb ,b combine bling in 1870 but Ss2s $50 20
likely IN the yc,r 1000 10 pass the Two billion
dollar line. This remarkable growth has ben
Sneny on lhc side Of exports, the imports ct isgo
U,ln,E Du' w per cent IN cNTcSS OF mos" oil 1871
while The cSpnns II 1899 are 2ic per cent greater
thin thosc OF 1870 mi, conrnrison Of The
in,'re sting, when conIlcrod in connection with
~ gt"s 3 ,rz9paimtan Iho population IN
II will be seen tina, while thr pDj,ul .on from 1870
70 l81o has doubled. the Imports have increased
showing the rnriI increase In the capacity Of tho
citizen OF the ucl States to supply his own
rcqulrcments and to contribute To thrsc u other
parts of the world. The average impItiaurl ms
Per capita in 1870 were sli 80, an} in 1892 50 Is,
S Wh'" me nyerHyc cApor'S per cnnn in $50 wcre
iimi"I,S pc, CAPITA are now 20 per cent less than
IN 1870, while the eNpnrts per capita are 5S per
cent greater than In 1870
THE STANDARD or MONEY.
The stat, of the Treasury exhibits y degree
OF hnanrial strength never before cquhlcd. II
places N" Government III position, more fayora.
b. than has before cIisled to take any steps
congress may CONSIDER WIG toward inaugurating
n+Ii ~ lmpfoIrnirn IN tn currency or iudiciOus
mglihchti'nS III th; banking. laws.
FirSL hS tn IN" money standard Gold now
r"nSn'uirS ina, standard II is now, and for
values ~ all commodities whether foreign or do
mrsuc, nave b'"n measured or declared IL IL
tn standard To which rcirrrnrc has been had
IN all contract or und rtd!iings Involving III" fu-
tur' payment ~ none. II Is the standard which
tests In" quality value II the ntrm diGt- cur.
rcicy with which wages arc paid and all ur nearly
nll II the minor business affairs of the Icnpl.
nrc carried on. The debate over the relative mcr.
Us 81 god ana silver az tn" tru" and proper money
while e." discussion has continued III advanced
nations {" tn" Earth, one after the other, with
hardly IN exception, hn7" adopted gold as the
NOR suitable standard Tor commercial nc,ds.
II II b. true aS 'ru" II undoubtedly * that gold
is now "nr stamford II MONEY values, the future
needs only tn nsSi'dRc" that II VIII So continue
10 "" unul - least the p-u'i' shall b. 49, united
In thor drsir" irr chang therein ~ e. h. abe
10 dh"c; tn vuc Il b tn HOUSES Il CuuEr rs, and
secure the HprruVing signature 4 tho Chief i.NctH.
tive Tn" cuni'G"nc" that Congress WI furnish
this Kind 81 a guaranty hu' Iu!i I'D ,n''r;r.. q.
labor, end given new ,mr'tus I" Hll our energies.
To make this favorable state II efairs perma.
nrnt the highest security should b. given that
the common denomrnatur 81 all calculations in
value shall remain unchE NSrd.
II is evident that direct and Elective way 10 do
this would b, 10 declare Tint the dit Obligations
Of the Governm"ut itself whether payable on de.
mand or At future rCrol, shall BE- prid IN gold
coin Of present weight and hnrncSs; or it would
~ equally effective. ". by p,Sitirr law IL were
made mandatory upon the Treasury Department
sn Ia pay and receive The two kir Is 81 money
silver and gold--as 20 maintain ih.lr party un.
der all Jnnditons Such action would b. in logical
conformity to what has already ben established
az Oh" policy" Of the Government To III" end
contemplated. the Treasury should bc clothed
- snt YagatNR at all ,sasa
Tho rstahl shircnt Of an ample fund, srnara to
and apart from the general funds To- b" held sp.
officially as n redemption fund for demand !iabi-
tics, must h. On important incident To- such lcgis.
laton. The recommendations 81 the President
in this particular, II furnulat into law, seem
TO b. adequate.
BANKING AND CCRREHCY.
In tho bginning law took no cogrizancc 81
banking. II gr~w into bc'ng AZ, in n free condi.
ton. the arts and trades and divisions in lab T
have grown. Whom society reached Stlr" where
men could put confidence in man. credit was born.
The producer or owner II property bechm" willing
10 pass its ownership To another against tho
buyrfs nromisr I" paw Its equivalent value at .
futur" time. Thus an enormous step forward
was mad, Brain and Drawn, united 10 character
could thrn gain the Use ni the tools Of prOdu ton
and With their aid could win from the reluctant
soil the yalu" for thc rors"w.rt 81 their cost.
Ability, borrnwinCNcspital, could create ca1i,al
Thus tho accumulationS II society advanced from
the rule ~ addition o. that NJ multiplication. Tho
men who desired the powor which credit gave
Increased In number, and under the same law
specialization u Industry. the dealer in crcd,
became specialized from III" dealer in goods
The man ihq, y. tinc''veiy separated became
Summarized he exchanges his effective credit
for the less effective" ur elsewhere ineffective credit
Of those with whom he deals lie makes paymcn.
for goods in one place, and takes his pay in an
Other lie makes payment for goods purchased
at distant nolnts. and takes his reimbursement
consumed H. receives deposits oi money These
deposits, together with any unused balances 81
credit due 10 others are evidenced by proper en-
tries ON his books lie carries in his money
chest p"rc"ntag" Of all the obligations thus evil
denccd sufficient tn enable him 10 meet the CallSt
for cash from such Of his creditors may require
that form Of pay mrnt To such as could b. well
accommodated thereby h formerly gave his
notes Of hand convenient IN size and dcnomna-
ton.
II would appear. then that the banker as a
private person might b" safely l,ft 10 pursue his
reiundlng certificates Of the act Of February 20.
s "S 0G "ncpD n and r" 's% 1901
ing the last eight years 1t has been impossible,
for want Of sufficient revenue, TO comply with
months Of the current fiscal yea. produced sur
calling without, interference from the law. b-canss
" is rvidcn, that his own interest, " wisely coIi.
sdrrcd. will guiGr linn in thusc directions which
it would b. the policy Of good laws TO direct him 70
The development Of our legislation during the
last thirty six years, which covers the history
II the National Banking act and al amendments
thereto. has thrown upon Congress large re-
sponsibility for the effective working OF TINT
agency known as the bank There seems TO
be- in some directions, an opinion that by the
grace 81 government thcsc institutions are cstab-
lish,d privilege 10 certain PERSONS favored:
that they have no real occasion to he: that at
best they are parasitical nlarts, drawing lilo
and nourislmcn from TIE industrial tree 10 which
they are ATTACHED, and to tie wCllbcIrE OF which
they contribute nothing II this were true, no
duty could he more Immediate than 10 rcTcel
all laws which give them existence, and. hv one
sweeping prohhtive act, forbid the exercise Of
their function Whether II was wise for the Cen
cral Government Ia legisatr AT all concerning
them, IL would bc useless now 10 discuss II -
sufficient that this has been done. and by action
permissiye in certain particulars and prOhibitiyc
In others there have been evolved some 300
national banking institutions
While stability in Tic currency should he safely
guarded, GtIlblnp the power Ot nccdiul cXraT-
sion must also be provided Tho exercise
Of this power, with proper limitations and 70.
striction must he intruS'cd 10 the bank There
Is no other egenCy that can wisely aud efficiently
execute H. In fact, the banks do exercise that
power now in regard H. tho larger palt II that
element which rightly understood, really rouS,i.
tutcS the currency, II Is a popular icu ion that
the ba ks deal in money, Money IL m incident
in its dealings an impOrta NJ incident no doubt
but, truly speaking an incident only The bank
deals IN rr'duS For consideration varying
according 10 time, Ilace and irCurls lance, II gives
to the public with whom Il deals its own debt oh.