The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1900-03-08
The New Currency Bill.

The currency bill, which will soon be
passed by both houses Of congress con-
tains provision pcrpetuating s4O,oOo'ooo
of the public debt for a long terms oil
years. In the opinion Of some financial
writer's the plan is dangerous and may
lead To disaster. Matthew Marshall, writ
ing in the New York Sun, anticipates
great imitation Of the currency as result
of this provision oftbe bill. The measure,
he savs, threatens possible addition 10
our currency OF $720 100000. The amount
of national bank notes secured by gov
eminent bonds is now about 500 ,0O0,OOO.
In exchange for $l97 600 Of these
bonds the banks are to receive aDou'
800, 600 900 in cash premiums paid out OF
the treasury and $l97 100000 III per
cent bonds, against which they are to be
permitted TO issue $l91 100000 OF their
own rotes instead of the sl77 ,00O,Ooo they
now have out. They will also be allowed
on non-convertible bonds 10 per cent
more OF circulation, or an additional ho'e
issue of nearly 81 200, 900. The volume oil
the national currency will thus be swelied
by s24 900, 900 of bank notes and $2o'ooo'-
900 paid as cash premiums on bonds ny
the treasury, making total imitation OIL
J s44 600 600. IL the relunding scheme Is
put into operation there will be total Is
sue of $40. O0O, 600 Of new bonds, OIL wh'cn
bank notes to the amount OF $63O,OoV'Voo
may he issued. The bill, however, limits
the note issue of each bank to the amount
of its capital, and the total national BANK
capital at present is only $6O8'OOo'oOo' VI
course the capital could he increased SO
as to secure the advantage of all the no'c
circulation permitted by the law.
The danger from the increase OF BANK
currency, in Mr.. MarshalPs opinion w'''
not consist of any liability to loss ny thoSt
TO whom the currency is paid. lha'
danger is fully guarded against by the
governments guarantee OF its redemption
What is to he feared, Mr.. Marshal
thinks, is the rise in prices OF all xmas o
property TO which an increased volume o.
currency leads, the wild speculation Il
stimulates. and the collapse with whici
that speculation il followed in course o
time. "The banks" he believes, "w'l
take out all the circulation they can unde
the nroposcd law, and they will lcud ~
much Of il s, they can. Borrowers, tempt
ed h., the facilities thus pressed. "n"i
them. will begin to buy merchandise
stocks and real estate, and at hrst VIII
sell them AGAIN at profit. Then the new
holdors will resell to new purchasers, an'
,rir,s will 20 on raising higher ana hiShe
until the tide turns and collapse and
manic mt an end to the business. I'm
is gloomy picture, but Mr.. MarsnaiI doe'
NOT seem TO take into consideration thu
fact that we have panics following unwis'
| speculation AT times "heh '"o'0 - :"
great imitation of the currency, such as II
anticipates from the legislature soon 10 Ut
enacted. There will he Speculation 'h
ri d.. increase of the curlenc'
... .n. and even if the reiundins 4"
A.rc left out OF the bill we should nav
our panics from time to time Inc '"hN
are managed in the man by conserva''V
men. who are not likely to bring about de
lihera,clv the conditions which Mr.. Mar
: shall regards as inevitable. The Chief Oh
q lection to the scheme seems to he that
will give those who are opposed TO go'
, standard legislation an opportunity TO al
|, tack the whole scheme Of currency legs
n letion, on the ground that it is in the in
terest of the national banks.-Bdlt'moI
SIM.