New-York tribune., 1901-12-05
TIE CURRENCY.

@ ss,r aRTrs ths ren9re q
now te SPEAK of that important medium of ex
change designated the currency meaning & by tnat
ment or by the banks under the powers conferred
upon them by the law ExSndnG syer ceT
Gates and gold certificates which represent actual
fsnt sola heif IN the OF pubifo dff serpfoe Of
greenbaeks and te more or ess fnsa S9n With
economic propriety be called money,real mone!.
Tnsy ss Pen are aee the aPR Of the he maker the
perform the obligation set forth IN - me ne pT9se
It now stands the limit in volume OF these o6lisa-
backs. their amount is fixed by statute. while In
the of the bank notes their volume Is prae da
Of United States bonds This is so because bankers
wi1 n0a any or Reie sk whouf % tera motive
the present well as the prospective price e OF
the issue Of bank notes To speak exactly on this
point the carefully Ia9es bank 0 DONG
ness in locality where the rate Of interest IL
Of per cent per annum note issuing while in
a per locality the pront is hlty-ont W Hgn
d5sdfha; 65s han;daedths. aaf a an pei cent ''-,' =
These dsures conclusively show the absence Of
inspiring motive the direction Of any material
increase in bank note circulation 1t Is PEREZ re-
apparent that unless conditions change or lesai re- re-
strictions be modified the country Supply "
money cannot be responsive & 10 ahg i aIso wise 70
keep mind that our population; now aggaesa am.
Years increase to probable one hundred and ninety
millions. II the present volume OF paper oney I 3, Is
and 70 current domestic trade it is evident that
timely provision must be mace ios Of larger
populatio and increasing trade Inc question rs ~
ceded that our present system is faulty in that It
IS infexible, not responsive IN possible supply 10
future requirements. in what way can the element
OF supply be made adaptable to demand:
BANK CREDITS AND NOTES.
In what has been ALREADY said t under aG the he1d tn G
that in it's broader sense the currency which our
larger internal commerce uses consists OF transfer
banks. furnishing these credits the bank finds
its profitable occupation and in their use those who
| prise find their needs on the whole well served.
| Now, there is no difference whatever In principle
between the banks obligation TO pay, expressed by
credit their books. and an obligation expressed
be transferred from hand hand If it be of pub
through machinery of checks transfer orders
| 10 those who make the more convenient use OF
| reason why those who find their requirements
eed v by sbon6 {h n6 be rha h the OF
There is. however, a secondary reason why the
possess higher elements of stability and safety
| than exacted in open credits on the books of
II is found in the fact that the relation
sides and may De terminated the choice OF
| either. The bank note. however. passes from one
ating in the smaller transactions circulating often
far from its place of issue the test OF redemption
promptly applied II would appear right and reason
round the bank credit Utilized in the form OF ban
notes. with such necessary guards and guarantees
as required make them safe, free from
risk of loss the hands of those who have little
| choice whether not they will receive them
in exchange their the payment of
| wages Having done this, the governments re-
sponsibility may rightfuly be said to terminate.
The requirement now made by the law for the
deposit of United States bonds with the Treasurer
United States condition precedent to the
issue of circulating notes by the bank furnishes the
desired element of security But If il be true that
diminishing volume of government bonds will op-
crate make il impossible to supply these needful
instruments of exchange in proper volume. then Is
not a modification of present requirements the
course OF wisdom? The answer to this question
must be the affirmative. There mOdfca-
tons conservative in character which if adopted,
can demonstrated to afford all the necessary
ouirements safety. give the desired condition of
supply TO increasing demand. and at the same time
make the bank note more economical and useful
factor in business affairs shall indulge in some
practical suggestions these points little later.
RETIREMENT OF GREENBACKS.
Preliminary thereto. want to refer to the green
backs and the desira Dility of relieving the Treasury
from responsibility which attaches to their
demption This responsibility at the present time