The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1900-03-16
OUR CURRENCY.
VIII Not ne nj All Improved ny TN
New Law-Power of the
banks.

New Law-Power of the
banks.
The national banks have always had |
the same privilege OF reducing their |
notes, IL redundant, under the existing |
laws that they will have under the law
now being discussed in the senate.
| They have only TO withdraw their
United States bonds from the treasury
department ard surrender their circu-
lation. There is nothing whatever in
the new law. nor could there be, TO
make this more easy. On the contrary,
by large proposed reduction ia the
tax on circulation, and by increasing
the limit of the notes issued 10 the par
value of the United States bonds de-
posted with the treasury. instead OF
90 per cent, as now great inducement
will be offered 10 the banks 10 enlarge
their circulation and thereby 10 pro-
mote imitation and speculation under
ordinary conditions. Ii is estimated
that on the passage of the law there
will be a rapid increase OF from SlOo,-
100000 TO $500, 900. goo (some people say
rnore) in the note issues of the bonks.
As regards the elasticity of the pres
ent system. IL would be impossible 10
point out the slightest superiority pos
sessed by the Bank OF England in its
currency regulation over the American
banks. The Bank of Germany has GER
tain privileges in this respect not pos
sessed by either the Bank of England
or the American banks. but these adj
vantages have not saved the Berlin
market from more deeply seated de-
preston than Wall street has suffered
from. In fact it was the semi-panic in
London and Berlin that precipitated
the American panic, as all business
men know. regardless of any 'curren-
cy system
The bill before the United States con-
gress. while opening the door TO an
enormous increase in the issue of bank
notes. at the same time provides for
probable heavy increase sooner or later
in the legal tender money Of the coun-
try in which the bank deposits and
notes are payable. When gold is with
drawn from the United States treasury
in exchange for legal tender notes for
export. these notes are TO become inn
pounded and withdrawn permanently
from circulation. except as reissued
against deposit of gold coin. II will be
made the duty of the secretary of the
| treasury also. either by absolute pro-
| vision Of the law or by nominal discre-
, ton. TO redeem on demand in gold coin
: the silver dollars and silver certificates
. 1 l,fr- nd slt =
E factorily the needs Of the domestic cir
: culation. The banks will thus have in
r creased means TO protect themselves
: from the demands of their own dcpos
K itors for gold for export. by throwing
e on the treasury (as heretofore) bur
2 den which does not properly belong te
!. il: but by the virtual extinCuishmen'
Of a large portion of existing legal ten
der money. concurrent with great in
crease Of the fiduciary money Of the ma
: tional banks. IL is hard TO see how the
new currency system" is going to di
minish the risk of monetary crises.
France to-day has doubled thu
amount of full legal tender silver mon
{ ey per capita that the United State.
has. and the legal tender quality of th'
: money for all public and private due
= makes it. Just as in the United States
{ as good as geld for all domestic pur
Il poses. The Bank of France discount
its gold reserve and its rate OF discoun
a by rendering silver instead of gold IL
a payment of it, notes and deposits. Tn
United States. on the other hand. pro
o poses TO degrade her existing silve
> money. to put a black mark upon II
ard TO reduce il virtually TO tokel
5 money. redeemable in gold at the vii
- of the bullion broker and exporter
y thus converting what is now currenc.
% asset into liability; this. too. withou
D. the shadow OF a demand for il from tn
~ people OF the country. to whom the ST
- YER. circulating in the form of silver Ger
n tifcates. has always given perfect sat
isfaction. There has never been th
- slightest discount or doubt connecte
ia with these certificates. On the t~r
trarv they were worth during az
- greatest currency panic-that OF ls95-
- a slight premium over gold in the Ne'
York market, by reason of their great
. er convenience for holding. or for shiT
'h mcnt TO other cities This form OF Gil
culafing medium is so completely at
- sorbed by the people that each month
~ limited coinage of silver is eagerl
~ sourht after in the form OF certificate
u and the treasury has virtually no frs
NJ silver in its reserve wide United State
- treasury monthly statistical reports
- so that no secretary of the treasur
could pay demands upon the eoyeri
ment in silver IL he would.-Londo
is Daily Financial News.