New-York tribune., 1901-10-17
RETIRE THE GREENBACKS.
Continued from first page.

have q clear conception Of its possibilities must
add to his experience knowledge of the history
or lis evolution. In preparing his address the
speaker said he had availed himself of the history
or banking by standard authorities. Addressing
hllsef directly TO his subject, Mr.. Stckney said;
me Inc medium Of exchange is essential part OF
GoLilinttCe as distinguished from barter. Inc
I5 S! Ut medium or exchange grows out oil
me- me aacL which cannot be too often repeated be-
pose OF al commerce ls-to use the unique and
her satisfactory expression OF the present Secre
4; Ine process IS only half done. Whatever COM
SnTingy ~ "Lrltdsiy accepted TO represent thlIss
G-Itts Ille process OF the suspended exchange IS
80 he Usual statement that money is the medium
me, ! ne most which can be said about money as
5 sucn nut as matter of tact it is seldom, prac-
!caIIy never used as such medium except in petty
manV ns+rS ne ne EleolqH OF exchange is creait IN
S 80 pelLy ana IN all the larger transactions
and they are extinS1sbeg b @ 6iI ~ o1 f,r " ne ni1.
ducJlon and commerce expand and contract
prTP6acHon T6ast and commerce contract.
., Ihere are many misconceptions growing out Of
to +Fa u-rrS when. IN DanAlng parlance IS given
PuPnG Is told that the bank deposits have Increased
Of no1st T!b aS SviIence OF an enormous increase
means r. me me increase OF bank deposits simply
has been changed For hank rr}it and bv This
means the indebtedness of the banks has been in
6ennSt Qr!pg The period in which the so called
SI2o.S0 Y 900 p9 the money in the banks has Increased
only S-Jtlsh,0D.
BANKS MUST SWAP CREDITS.
Swapping credits is the function of the modern
commercial bank. Its business consists in scrlI-
uL4zine individual credits and in giving its own
- IA tN mango Tor such individual credits
15ItppIE OF the medium of exchange Of commerce
Inc pank which fails to continuously exercise its
l-l-CtOH OF swapping -redItS fails perform
| Quty ana does inCalculable mischief When the
DahkS refuse 10 swap credits with the merchants.
| tie IatteF are compelled stop buving Ultimate
~ this brings ruin to the merchants and producers
ana distress to the laborer This condition of affairs
IS the result Of banks contracting their 50 ca He'd
Loans but am not prepared TO sav that II was the
tdtIt OF the bank managers That the American
"'llIA, eS az present organized should falter at
minor crisis. and stop as far possible, the
S".al L.4S 81 credits IN major panic seems in
tNlla9le The necessity is due 70 the lack OF q
| oahhh6 system The banking system Of England
gilaoleo the banks in London at the time of the
% ~ L5lIre not only TO continue the exercise
e .sthLllE 1IHctlon, but to Increase their liza
qiIies $40 'NVS by assuming those the BarinEs.
tdLl,S Slch IS occurred in this country in 1887.
80 70 ahG lSss, are preventable by known sys-
| oTiginatec IN Scotland is the remedy
-" banking system for great nation like the
Chlled states requires a central bank with a head
4 IN the chief commercial Cfrv. wi branches IN
stltute the head and the backbone OF the system.
rms central bank should be the bank of banks
ana the oaIlk or the govern r1ent. The Sub-Treas-
iries should be abolished. The central bank should
hold the gold reserve of all the banks and Of the
nation The reserves Of the other banks should
consist or credits on the ledger OF the central bank
IN important commercial centres with branches
scattered over the country these carrying the f4-
C4ltles or great strong, solvent hanks TO every
harnlet and crossroad in the country.
The only legislation required Is the repeal Of the
| sub-Treasury law and OF the provisions he