The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-09-10
VIEWS OF JOHN r. BRANCH.
How Currency Conditions 81 old Be
Il Dealt With BY the Government.
r,chmond. Va. September 8, 1908. n

4(EEs5f RlCnmO " h.,L oepleHlUoA =, AoVV.
Hon. John w. Daniel, n. 33
United States sena tor:
Dear STA pprehenslon that there
would not be enough money to move tho
crops this fall has been so great that It
has been necessary for Secretary Shaw
to notify the financial world that he has
$40, co 900 Of government receipts so placed
In the treasury that no can put It OF on
deposit with the national banks IN case
there should be n larger demand Tor
money to n,ovc tho crops this fall than
the banks can supply.
Tor this he Is entitled to al praise.
Is it not evident that our currency sys-
tenn sadly needs revision when IT requires
mid every fall from the Treasury Depart
ment to move the crops? II our system
is not changed. where VIII the & money o1eS
come from hereafter should q lutuVe
Secretary OF the Treasury refuse 70 iur'
nl.h the necessary aid, or should the
time come when there will be no available
surplus in tho treasury. which must some !,
day DO the case, II the policy Of some OF
our prominent law-makcrs prevails
Another evidence OF the fnllacy OF oui
present sys EN- Is that frequently during
tho fall demand for money the rate OF
interest goes above twenty per cent per
annum and when the demand IS suppllea
! lt goes below two per cent.
III "a very desirable We should have q
rate OF interest that will nuctuate as II
ltle as possible. and I see no reason {" ny
| a system could not be inaugurated by
which the rates OF Interest would rarely
90 Below four per cent. or above SIX per
cent per annum. 5l5
. I would, therefore, respectfully Suggest
tho following notifications to the present
system: Ill! 81 Y a. -i.t,, Z, s 8,
The national banks should be authorized
to surrender one fourth OF thoir s3eo, Co., o
circulation, withdrawing the bonds de-
| pos!ted to secure same. and Issue IN ~
| stead ten per cent. of their total capital
surplus and undivided profits IN ne"
notes. 4ll
The capital, surplus and undivided prof.
Its OF the national banks now amounts Y
over $4,000 600. and this would there
/! fore give us over sla0,oo0.o0O OF new cur
rency, on which the government shoult
receive a tax OF two per cent. per an
mum.
Under this plan the amount OF natona
bank notes In circulation would be IN
creased by over 10000, 900. This currenc:
would contract after the crops are moved
and would be relssued when the money
| needed to move the next crops,
! There should also be Issued an emer
/ ncy currency. equal to ten per cent. 9
the 1890 100000 ca pital. surplus and undl
vlded profits OF the national banks. upo1
which currency tax should be charge
as follows: Five per cent. per annum TO
tho first ninety days, six per cent. per nm
mum for the noxt ninety days. and sevel
per cent. per annum thereafter.
| All currency issued by national bank
should be first lien on their assets. an.
! should be guaranteed by tho government
Tho banks should have the right to re
deem or reissue at will all currency sc
cured by deposits OF government bonds
and also to redeem at will all currenc
j issued secured by their assets; but the
should not be allowed to reissue sam
until ninety days thereafter.
"a am OF the opinion there cannot be 4
loss, but there will necessarily be q YER
large profit to the government from thi
asset currency. the payment OF which tn
government would guarantee, MY
1 Tho Comptroller Of the Currency shout
have tho authority to cause tho redemp
ton at his will OF any or all Of the emer
gency currency W. 55a Fl ia
|s Yours truly.
i JOHN F. BRANCH.