The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1899-06-13
THE REPUBLICAN PROGRAM.

the IasG House OF representatives to
formulate a plan for reforming the
currency has agreed upon a pre-
gramme, which comprises:
1. The redemption Of all obligations
OF the government in gold on demand.
2 Greenbacks, when once redeemed
for gold, to be re issued only for gold.
8. Permitting National banks to Issue
notes to the par value of their govern
ment bonds deposited in the Treasury,
instead of 80 per cent, as at present
4. Permitting the minimum capital
Of National banks to be $25, 600, instead
Of $50, OCO as at present.
The first proposition would make the
$500, 600. 900 of ''greenbecks" and Sher-
man act notes definitely payable in
gold alone, instead of gold and silver
at the option of the Government. 1t
would not, however, legaliz9 Secretary
Carlisle's plan to make u $500, 000,-
900 of silver currency redeemable in
gold, and would fall that much short
of the compete establishment OF the
single gold standard. The second prop.
osition, STIMULATING that when green
backs are presented for redemption in
gold they shall not be rescued except
when gold ia deposited in exchange for
them, would prevent these ~greenbacks
from being used to meet current ex-
penses, and might result in their per
manent retirement. The proposal to-
permit National banks to issue notes
up to the par value of their bonds
would somewhat increase the bank
note currency of the country, and
aIs) the price Of all Government
bonds. The reason the new 3 per cents.
are selling at 1O83 though they may
be redeemed at par in nine years, il
not because their holder are content
with 2 per cent. interest,", but because
the National bank which deposits
800, 900 of these bonds in the Treas
ury, and pays a small tax, receives
not only this 2 per cent. on its bonds,
but also the current rate of intert s. on
$50, 900 of bank notes it is permitted to
issue to it's customers. If the bank
is permitted to Issue 800, 900 of notes
instead of $50, 900, the value Of the
bonds will of course be increased.
The fourth proposal, which would per.
NIT the establishment Of National
banks with a capital Of only &25, 900.
would probably lead to the establish
ment of such banks in country towns
too small to warrant q National bank
of $50. 600 capital.
Interpreting, without PCS. ing judg~
ment on, these propositions we may
say that the proposal that all obliga-
tions of the Government sail be pay
able in gold alone merely makes obif
gatory the policy heretofore pursued
by the Secretaries Of the Tres s Try. The
proposed requirement that greenbacks
) once presented for redemption shall
not be treated as assets and paid out to
meet Government expenses would en-
able the banks, whenever they were
Sd minded, to present these ~greenbackg
in such quantities as to empty the
government treasury, for there are
over $500, 900, 900 Of them outstand-
ing. The bank are Qrom their stand
point wisely hostile to the circulation
of these notes, and their avowed pol"
icy would incline them at the first Op
! portunity to force the Government to
retire these notes, though doubtless in
whatever manner would least arouse
- public antegonism. The third propo'
sition seems to increase the privileges
of National banks, without requiring
+ any corresponding payment for the
money value of the privilege but there
: is nothing ursafe about allowing banRE
to issue notes up to the par value o.
their bonds. The fourth proposition
permitting banks of email capital *
20 operate under the National banking
~ law, seems to be justifable from tn
, public standpoint. We want, how
:, ever, to hear what criticism banking
- officials may p ssibly make upon tn
y organization of small banking con
~ Germs. Expert knowledge on this poin
- will be valuable. Taken as a whole
the plan is lessra1ical than that urget
by Secretary Gage in his last report, bU
q more radical than anything whjcl
has heretofore received the support c
~ Western Republican Congressme1,-
2, The Outlook.