The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-11-28
The Currency Report.

The Currency Report.
How greatly times have changed for
the better by the settling OF some grave
financial questions appears from a study
or the report OF the federal controller Of
the currency. just given to the press.
Tho time was when this document. with
fits statements OF money in circulation,
silver production and prices and redemp-
sion OF treasury notes. was watched with
eagerness and made a subject OF national
discussion. Now. although the report OF
Mr.. Dawes is an able and interesting doc
ument. its interest Is for reference rather
than for suggestion. and Its recommended
lions touch details rather than principles
of administration So much have we
gained by the great acts OF currency re-
form carried through by the Republican
party.
March "a. 1900. in the matter Of extending
national banking privileges Ii first set
forth. and we see to what an extent the
currency OF the country has been REIN
forced and the commercial needs OF COM
munities distant from financial centers
have been served by permitting national
banks to be organised with capital Of
s2sooo. and by the other notifications OF
the nationa, banking act contained In the
new Law. From the date of It's passage
to the end Of October as new banks were
organised. or these. 80 were banks with
less than 10000 capital. and thei- aggre-
gate capitalization was @.s7socs. The total
increase 10 circulation during this term IL
SO 4sa.27e There are now asss national
banks in operation. with a combined cap
maI OF ssza. see sse. and combined resources
Of over El.eooa.eoe
The main recommendations Of the con-
troiler which no wishes to see embodied
in legislation. are a further Limitation upon
the ioaning by hanks Of hank funds to
officers and directors. ana restriction
OF the amount OF reserve funds which
keep on deposit IN the financial ceutsrs.
The propriesy Of the former appears from
the mere statement Of Il. The latter sug-
gossinn arises fran practical and danger
Gus experience. When the country banks
have accumulated deposits which they are
unable 70 loan 10 their own constituents
II ta4t - u.
large sums on deposit with the banks o,
the reserve cities These In turn mus,
make use Of thsgr accumulated funds. and
50 money becomes abundant and cheap
In the financial csnters This encourages
speculation Promoters ~ great enter
srises and u easy 10 finance them. and
heavy loans upon their stocks as eona,-
srAl are obtained rhen. either Because
there u a assnana tot money to move she
crops or because confidence wsAkens. tse
! outside banks begin 80 eaii in ,heir Do
peslts Tue central hanks. having 10 sur.
nisa the cash must contract and call In
ahsiT loans- II 10 easy and not infre-
aarn, sur = serious oasinsss disturbance
e. small aaAasiai rsnis 10 foIiow IRIS
pravokins eeass
THO remedy susueAtea ~ Mr. nawws Is
e compel sss banks 70 sesp larger por.
issn ~ their reserves IA fhslr own vaults
Teey woula sacrifices tss saaaM Amsassi
* Interest. vNne sss regulation wpuia
contribute weasly 10 saanslsi AMI IN.
aastFsal wAh1iay Ras the ruSxestspn
ttsslt prsp~s and senssl.ae ~ e Ia a.
seets "a oaes nsrs "a shx tex, ans lasv4.
sSh'e wep wasss tsss esantry msss take
In sAe evosaitaa q safe. sgsenslas ara
ss-ix pce91sr bsnA1nx system. Tnss ss
TIE ssaNe az rlrSa'astsg nesss against axns
ssssss. - sse sxssns VI sKea per1ensa<s
* tAs barEs rss5sst ~stA xaaran.ps
faaa % protect unssAas8esp. a-f ,ar
uqra aotss Essssssi &C. xrJssssaies tsat sir.
essasaoA saA sxpsas ~ssn sfe esnaas sar
msnsy Ia srssA asa eaasr4ei wAea Il fazss
20
Tnte "a ssss seat. y act tao asssuass fern
q aaas nets sisraiAsioa- r wsn AAolssA
ilessnasase aRok ~ saAnelAs eenssrs II
ssE saAs'e sne local epzasnansss 10 TAXI
SAxe es Ia cwa Gn2aesal nsS-s, The 49,