New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-15
NOTES AND CERTIFICATES.

The curious vagaries OF financial argument
have been illustrated anew in the discussion
about the issue Of gold certificates. 1t was
claimed that this measure of relief" was great
" needed because of the demand for more
currency in the West and South in moving the
crops. Secretary Gage was by some much
blamed because he delayed that step, and when
it was taken some bankers hailed It as If the
welfare of the country had depended on an addi-
ton Of 100000 or so to the supply of paper
for use in crop moving. Yet at the same time
banks as far west as Omaha We're lending
their surplus funds in the New-YOrk market,
and so completely undertaking New-York
banks in the commercial paper market that
practically the whole of such paper offered by
the merchants here was taken by banks of the
West and South. They have plenty of loanable
funds; more than they can proftably employ
in their own regions. But the New-YOrk banks
are CARRYING loans so large that their proper
ton of reserves to deposits has fallen ncon-
venently low and there has been some fret
ting about it.
Beyond question the West has money enough
for its own crop moving this year, and if it
were not found more profitable 10 lend on city
commercial paper at moderately low interest
the interior banks would he turning their sur
plus funds into cash and sending 1t westward
for distribution among farmers. New-YOrk has
no occasion TO fret itself about money for crop
moving this year. But the kind of currency
that is most desired in that operation is not
abundant anywhere, owing to the wholly mex
cusable failure of the Government To provide
that notes or coin Of one kind shall be freely
delivered on demand in exchange for notes or
coin Of other kinds. Without confusing the
question by referring TO silver certificates, It
may be held obvious that the Government
should supply TO holders Of its notes the de-
nominations Of notes which they find most con
venient. Whether the Treasury has outstand-
ing one note for 81 900 or one hundred notes for
SO each makes no difference to the public ac
count, but may at times greatly affect the ut-
ty and availability Of the notes 10 the holder
Evidently. the more completely the Government
can satisfy the need or convenience of its note
holders the safer will it's credit he. and free
interchange Of the notes which are not wanted
at any given time or place for others which
are wanted. within the capacity of the Treas
ury to maintain such interchange economically
would assuredly do much TO render the National
note more satisfactory To the people. In any
time Of stress that would mean a safer and
stronger currency.
The issue of few millions i'm gold certii-
Gates would be wholly an absurdity # il were
not mode of putting ont notes of different
denominations from those otherwise available
The certificate is nothing but promise to pay
gold on demand: the note is exactly the same
The issue of such certificates If they were
in some mysterious way more valuable than
the notes or carried more sacred promise. is
without excuse except in the desire 10 oh
tain sometimes larger and at other times small
or notes than those otherwise available, or
else more notes in place Of gold coin When
the Treasury ceases 10 be governed by restric-
tons which date back to the struggle for specie
resumption. and have been without iuSifca-
ton since every note was made Of equal
value with the gold II promised. ii may serve
the public interest much better by issuing on
demand notes in exchange for gold deposited
and large or small notes as desired in exchange
for notes or coin deposited But for the effort
TO drive the greenbacks out Of use such re-
form might before this have been accomplished