New-York tribune., 1903-07-15
THE EDITOR AND THE BANKER.
A SagaciOus Plea for an Enlarged Basis of
Circulation

John s!eiqhsr Edit9r Lesliss weskly before
the .. 5. Editorial Convention, Omaha, July ,
If the editor seeks a special article for his col
umns, he obtains it from specialist If he is
sTI6er eS % S on c ne taiks s5 w Win do
suits physician a surgeon II he is discussing
aWyerES Why fherefora i5 discussing business
matters and banking should he not consult the
ablest business men. whose success has emphasized
issues, and the editor, ignoring the banker takes
less about finance than any other man in the com
munity. and whose contempt for the editor has just
been shown in boSs-riddeu Pennsylvania, by the
passage Of libel law Infamous that no decent
citizen in the Commonwealth can defend IT,
Do we recall the extraordinary effort, during the
closing hours Of the last session of Congress TO
for the Fowler bill in the House? These measures
had the support or representatIye men OF -, 1otn
were pressed so earnestly becauss Of the critical
Both measures proposed to enable the banks in
times of stress TO issue currency more quickly and
can issue currency now ONLY on the deposit of gov
ernrnent bon5s az Security for tbe same We are
rich and prosperous and we have been paying on
rapidly that no other Security in the country and
perhaps in the world sells at such high Price as
a United States Government bond II we continue
to pay of our national debt as rapidly as we nave
tinguished within the next generation, and where
shall We find the basis of security for bank cIcu.
until fire costumes his house before he insures IT,
what we neeo OF C9IEress Is i deglslagol d ,y 20 S
not oniv elastic for expansion but also for con-
traction. adequate in volume to meet emergency
needs like those arising from the moving OF the
crops and contractible when these needs no longer
exist.
we need to make provision for banks to issue
additional circulation in emergencies IN restricted
volume subject TO such tax that they Will hasten
10 retire the increased circulation as soon as the
emergency is passed and thus prevent unnecessary
and dangerous imitation The present system, under
which banks issue their notes upon the security OF
government bonds, makes both the issue and retire
nent of the notes difficult. Bonds not obtain
able except at high prices when additional notes
are required. and the notes when issued cannot De
retired, except 10 a limited extent and under Dur
deuSOue restrictions.
We now have our supply Of money arbitrarily
slant change, and there is reciprocity between
banking and business. adjustment OF the FORMER
TO the needs of the latter. take II that we are
all in favor Of two suggestions: one that Would
vault of the National Treasury. in which govern
rent funds shall lie inert and idle, and that would
require the deposit Of government revenues, Gus
toms included, in national banks. under proper
Ceptance as security for government deposits OF
other first class investment obligations beside the
bonds of the United States. These are two thlIBs
that can be and should be done, not because the
banks ask for them, but because the people heeo
No one is more stalwart in his partisanship than
m but there questions which transcend poll
rics and which do not belong TO its domain. Let
the editor. as a leader in his community. LEAD not
onIv in party matters but let him lead In every
patriotic purpose and in every movement FOR the
ruhIic welfare Let him remember that the pass
0f a successful government, the foundation OF ouS-
ness prosperity, is safe, secure ana setIeu oaIh
ing system and that the nearer the editor gets TO
the banker the better ii will be for him and Tor all
the best interests Of the community III Whicn Doth
reside.