Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-01-13
The New York Sun Reviews the
Currency Bill Before Congress.
Fhe Dcbt Rorundine scheme At,noh,
ed'o HOME Currency Ell, by tho
senate Finnnee Committee Is
Avowca'y Intended TO Boncn, The
National Banas,
From the N. Y. Sun. Jan. @,

III. J.J
The debt refunding scheme, which
the Senate Finance Committee has at
tached to the House currency bill, is
avowedly intended for the benefit of the
national banks. 1t proposes to create
sS50,0O0,000 of 2 per cent. thirty-year
Government bonds. in order that the
banks may take out circulating notes
against them. to their par value, pay
ing on the notes n tax of only Il per
cent. per annum, and clearing on them
n profit of 1l4 per cent. per annum.
BY the provisions of the National
Bank act, the government not only
guarantees indirectly through It's bonds
the redemption of national bank cur
rency. but undertakes, directly, should
any national bank fail, 10 redeem It's
notes at once, selling bonds afterward
to reimburse itself IL the bonds
should fall To produce enough to repay
what has thus been paid out. the gov
eminent gets back the deficiency only
after the banks assets, on which it has
a prior lien for it, arc liQuidated
Furthermore, when any national
bank. for any reason, surrcnders it's
circulation. it pays the government an
equal amount OF lawful money, and
the government thereupon assumes
payment of the circulation. The notes
thus surrendered become. therefore, the
direct debt Of the government. They
amounted, i'm the aggregate at the be-
ginning of this month, TO more than
s36, 900.
The government also carries on the
work of engraving and printing the
national bank notes. and of rcdeemn,
them out of per cent. fund of lawful
money furnished by the banks for the
purpose. 1t also maintains. at an an
nual expense of over 100000. the de-
partment of the Comptroller of the
Currency at Washington, with nearly
one hundred clerks. besides n number
OF special examiners paid by the banks.
to supervise the affairs of 300 national
banks and to protect the public against
loss by their acknowledgements.
The sole justification for all this eX-
pense and labor is the furnishing to
the people of Il safe and sound paper
currency. / is not pretended that
State supervision would not. in other
respects. as amply suffice to ensure the
solvency of banking corporations. as
mat of the Federal government. 1t is
only because the national banks issue
circulating notes to serve as money
that the Federal government takes
charge OF them.
OF the two currency Ellis before Con-
Gress. both provide for the maintenance
OF paper currency issued directly nv
The government. and for its redcmntion
in gold on demand by sufficient gold
redemption fund. One or the other of
these two bills is pretty sure to become
a law. Then, the government notes
Will be as nearly Il perfect form of pa-
per money as human wit can devise.
n grnt F.T~r,t, mt 6 nc
to redeem its notes. always levy and
collect taxes or sell bonds. whereas
banks must wait upon their debtors,
and. possibly. fail to collect the whole
of what these debtors owe them.
These things being so. the perpetual
ton of the national bank system be-
comes not only Unnecessary but n
source of useless expense to the nation.
In the course of the next two years.
the charters of most OF the national
banks expire and need not be extended.
If their stockholders desire TO continue
in business they can reincorporatc un-
der State laws, losing only the privi-
is.ei.ii NJ
never should have been given them In
place of the circulation which will thus
be retired, the government can issue
an equal amount of its own notes In
redemption of an equal amount OF
bonds, and thus both prevent contrac-
tion of the currency and save consid-
cradle interest.
To make the perpetuation of national
bank currency part of the Republican
program, is to raise, deliberately and
unnecessarily, an issue which the party
of Organism will be only too happy to
take up. The question for the Repub-
lican party is: Shall we. by entering
the next Presidential campaign as the
champions of national bank money.
give to the cause of Organism a
strength 1T could not otherwise hope
for. or shall we let the banks go?
Common sense is in favor Of answer
ing the question against the banks. Let
the national banks 90!