The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-20
And the Best Financiers Condemn Ev-
cry Suggestion to Increase the OBJ
legations OF the Government.
HE SUGGESTS NO REMEDY
pyT REFERS TO WHAT THE NATION
AL BANKS MIGHT DO.
Congress Likely To he Urged to Enact
More Favorable LegisIntion-Mr.
Crumpacker's Proposed Hill.
pecial to the Indianapolis Journal.

Special to the Indianapolis Journal
WASHINGTON, Nov. 1s.--What the ma
tional banks might have done to relieve the
currency pressure this autumn IL the sys-
tenn of basis of bank notes on United States
bonds at high prices had not taken the
profit out OF the noteissuing business IL
set forth in a somewhat striking manner In
the annral report OF Treasurer Roberts. just
out in its completed form. An abstract or
the report has been made public, but not
this discussion, which is likely TO open the
eyes Of Congress and the country TO the
need OF some important changes In the
banking laws, If the banks are to be put
in position TO come to the aid OF the mar
ket in periods OF, stringency. What the
treasurer says under the head Of Call for
More Money is as following:
THE wise judgment of the best financiers
CONDEMNS every suggestion 10 add to the
demand obligations of the government. ex-
cept 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
addressed to the treasury regardless OF the
legal inhibition Of additional issue. Not an
a matter of disposition or convenience, but
of statutory obligation, the treasury could
give no favorable answer. 1t constantly
went to the limit of its powers. There was
then, however, and is now. a source from
which s. and $40 notes could be provided
in abundance, IL those to whom the law
gives authority TO put them oui chose TO
DO so. The existing national banks Of the
United States have the right under their
charters to add $3i5 020. 413 to their circula-
tioi.. They are deferred by the high price
of United States bonds taken At only 80
per cent. of their face, the tax on circula-
tion, and the consequently small profits or
absolute loss consequent to the issue OF
notes. Thus the need for small currency il
Tot met.
Figures condensed from statistics fur
nished by the controller OF the currency
for June 30. 1899, make plain the capacity
under the law to add to the volume Of cir
culating notes of banks. If few
States and two great cities are taken for
illustration, the national banks were en-
titled TO add to their outstanding notes
these vast sums: New York State. sn.7oa.-
ESQ., Illinois, ss.l92sSo; Ohio. s2s 10000; Penn
sylvania, sS7. l3o; New York city. s2s,lsl,-
$50, and Chicago, $15925, 200. The aggregate
capital stock of these banks was 500. $751;
as, and their circulation was S., .eS.
In Chicago, as a great center OF trade and
finance, the requirement for currency is on
the broadest scale, YET the national banks
of that city have a right under their chart
ers to put out $15,935,700 additional circula-
ton. For itself and correspondents New
York has very often sought for more paper,
while its national banks have the legal
power to add sl.sS0 to their circulation
at once
The assertion Is loud and persistent that
the Western States are suffering by reason
OF the lack OF currency. At the same time
in these States, including the Dakotas.
Nebraska, Kansas, Montana. Wyoming.
Colorado and the Territories OF New
Mexico and Oklahoma, and the Indian Ter
ritory the national banks could, under the
law, issue additional notes TO the amount
OF sls,2S5. .245.
mo criticisms Of these institutions is in
tended but IT Is vital to the cause OF
sound money that clamor for more govern
ment paper should find no excuse in ex-
listing conditions. The friction has been due
to casting a burden on the treasury which
does not belong there. The natural avenue
of relief is through the national banks.
In the absence of individual motive or the
coercion OF law, II may be well doubted
whether they can be expected to furnish
such reliet. But IL Is fair TO point out that
the treasury in this. as in previous seasons,
has strhen TO the utmost TO meet the de-
mand for currency for moving the crops
and for general business. II has exhausted
all its resources and these ought not 10 be
increased by more government issue. The
vast inflow Of gold into circulation has been
an unmixed blessing and helped every In
dustrial and financial interest This Is a
legitimate and permanent contribution TO
our money. Ii is likely to continue and to
grow. Beyond such increase in gold colp
the national banks must solve the prob
lem OF adding to the volume OF currency.
Thus far the concentration OF opinion
in favor Of any radical change in our bank
ing system has not been OF such force as
TO compel legislation. The question presses
with a growing force and invites to se-
rious consideration. A discussion OF a
change in the provisions Of law for bank
notes does not belong here and may con-
fidently be left to those charged with Il. As
public opinion shall become crystallized and
financiers reach an agreement, the statutes
will express the decision OF the people"
>