Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-04-08
NOTES AND OPINIONS.
CURRENCY INITIATION.
(From the Financial Bulletin.)

The financial bill. which became a
law March ii, has within it the potency
of u very material imitation OF the cur
rency. The extreme of TINS potency is
about $I20, 000.O 100, OF approximately $40
per capita Of the present population OF
The country. The element oil danger in
| this possible enormous increase or cur
rency is the burden of keeping the
entire mass at par with gold 1t will
be necessary for the Treasury to pro-
vide and maintain a reserve of gold
sufficient to protect not only all the
currency now outstanding, but the in
crease of national bank notes issued
by virtue OF privileges granted in the
Dill, Whatever that increase may be.
Our present per capita is approXi-
mately VS.. and the maximum pOssioili-
ties would increase II to $50, an addi-
ton OF 40 per cent. 10 the present
volume of currency.
AS matter of fact. it Is doubtful il
the privileges under the bill are utilized
to the extent of even So per capita.
Still, should business continue prosper
Gus for three or four years more with
out serious break. the enormous vol
ume of currency required will tend to
encourage a large increase of national
bank issues. Even with the maximum
amount issued. there would be no occa-
sion for apprehension; panics do not
OtCui IL Ol1 lHG lUIidiiOil Oh
where the currency Is sound, per con-
ira, it is the contraction of currency
that occasions panics and financial dis
tress.
France. in many respects the most
advanced of civilized nations, has II
per capita of about $l5, and finds no
difficulty in sustaining all her currency
at par. No nation has shown such SUI
| preme ability in dealing with questions
of tiOnD1 tinnOPp q h.
had the wisdom to confer upon her
government bonds the quality OF legal
tender, thus rendering them available
as money" whenever required for that
| purpose. and Introducing into the
| financial situation the quality of elias
ITCHY which our own system lacks.
| Had our government bonds been made
forever out OF the power OF Wall street
to disturb trade by creating al strin-
| gency In our money markets.
considerable imitation OF tho cur
rency. if ii really occurs, will be re-
Elected in prices and in 4 further slim
ulation of business. These effects,
however. Will be but of short duration.
| They will disappear. when the euuilib-
rum, disturbed by increase of cur
rency, is restored TO normal conditions
| by the absorption of the Increased cur
rency into general circulation. The one
lasting effect will be an increase in the
elasticity of the currency, because OF
its greater volume. ana there Will be
less tendency 10 strinSency under con-
ditions of pressure.
AS long as the government is abso-
lutely good for its obligations. an in
crease of currency within reasonable
limitations can be detrimental to nc
legitimate interest; on the contrary il
furnishes increased facilities for bust
ness by multiplying the tools OF trade
Dollars and tools of trade. and as LONG
| as the business Of the country ear
profitably employ the increase of cur
rency, the additional issue is not an
imitation. in the insidious sense OF the
word, but a legitimate addition to the
facilities of the business of the coun-
| try