Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-11-23
BANKS SHOULD GIVE RELIEF.
Treasurer Roberts says They Could
Vastly Increase the Currency.

lreaSuTeT NoOcEtS say 4hoy SOAA>A
Vastly Increase the Currency.
Washington, Nov. 23.-What the ma
ltional banks might have done to relieve
| the currency pressure this autumn II
the system of basing bank notes on
United States bonds at high prices had
not taken the profit out of the note IS
suing business, is set forth in some
what striking manner in the annual
report of Treasurer Roberts. An alb
stract of the report has been made pub
| lie, but not this discussion, which is
likely to open the eyes of congress and
the country to the need of some i'm
portant change in the banking laws, if
the banks are to be put in a position to
i come to the aid of the market in per-
iods of stringency. What the treasurer
lsays under the head of Call for More
/ Money is as follows:
The wise judgment of the best finan-
ciers condemns every suggestion to
add to the demand obligations of the
i government except in the case of gold
certificates issued dollar for dollar
against coin actually in the treasury.
Yet urgent appeals for notes and silver
certificates have been frequently ad-
dressed TO the treasury regardless OF
1.-The legal inhibition of additional issue.
4 Not as a matter of disposition or con-
venience but of statutory obligation,
the treasury could give no favorable
answer. 1t constantly went to the limit
fof its powers.
There was then, however, and is now
a source from which S. and $40 notes
could be provided in abundance If those
to whom the law gives authority to put
them CUT chose to do so. The existing
national banks of the United States
have the right under their charters to
ladd $345, 020413 To their circulation.
They are deferred by the high price of
! United States bonds taken at only 80
per cent of their face, TO tax on cireu-
!, lation and the consequently small
, profits or absolute loss consequent To
, the issue of notes. Thus the need of
: small currency is not met. Figures
condensed from statistics furnished by
!, the comptroller off the currency for
June 80, 1899. make plain the capacity
under the law 10 add TO the volume of
circulating notes. of banks.
III a few states and two great cities
are taken for illustration the national
: banks We're entitled to add to their
outstanding notes these vast sums.
New York state. S4l, 7o2, $50; Illinois,
: toutside of Chicago) S9,l92,6S0; Ohio
: So 500, o20 Pennsylvania, $50 So, 100;
: New York city, S29lSl,6SO; Chicago
: sl5,925,7oo. The aggregate capital stock
: of these banks was s2D9,So7,4l3 and cir
y lcuation was SS1, l64, 6OS.
In Chicago. as a great center OF
= trade and finance the requirement fol
currency is on the broadcast scale; ye
The national banks of that city have {
= right under their charters to put on
sl5,925,1o0 additional circulation. Fo
itself and its correspondents New Yorl
II has very often sought for more paper
!, While its national banks have the iega
y power to add $291Sl,6So to their circula
- ton at once. The assertion is loud ant
persistent that the western states ar
ii suffering by reason of the lack of cur
- rency. Al the same time in thes
: states, including the Dakotas, Nebras
lza, Kansas. Montana, Wyoming. Colo
>. rado and the territories OF New Mexicc
!. Oklahoma and Indian Territory, tn
~ banks could. under the law, issue add
tional notes 10 the amount of sls,2S5,24;
+ No criticism OF the officers of thes
! institutions is Intended, but it is vita
ae ito the cause Of sound money that clam
Or for more government paper shoul
Ne The friction has been due To castin
of the burden on the treasury, where
he does not belong. The natural avenue {
or relief is through the national banks. /
on the absence Of Individual motive or Tn
II coercion OF law, il may be we'll doubte
whether they can be expected to fun
e. nish such relief
is But it is fair to point out that II
h treasury in this, as in previous season
al has siriven to the utmost To meet II
20 demands Tor currency for moving Ii
crops and for general business u ht
ty exhausted all its reserves, and the.
ed ought not to he increased BY more go'
m Harnment issues. The vast inflow OF go
Us into circulation has been an unmix,
,p- blessing and helped every industri
and financial interest This is a Iegit
re- mate and permanent contribution
il cur money. 1t is likely to continue al
ere grow.
re- Beyond such increase in gold co
ny. the national banks must solve the pro
is lem of adding To the volume of the Gu
,oda rency Thus far the concentration
COR topinion in favor Of any radical cham
ia in our banking system has not been
ay, such force as to compel legislation.
tic The question presses with a grown
the force and invites to serious consider
M ton.
"A discussion of change in the pr
visions Of the law for bank notes do
nor. belnpo here and may con fidantlv