The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-05-19

The fluctuations of bonds determine the
volume of national bank notes. There
is a limit to the amount of bonds and at
this limit, so far business is concerned,
the national bank note is as fixed in VOL
ume as the greenback.
There is no such thing as expanding
and contracting the circulation accord
/ ing TO the demands of business.
Next, the proceeds of taxation, the
whole revenue of the government, are
taken from the channels of business and
locked up in the sub-treasuries of the
! United States, instead of being deposited
! in the banks for business purposes. So
| that today there is locked UP in the treas
ury over see, OO0Ooo.
| Our System Unequaled.
! No other country taxes its circulation;
no other country impounds its revenues
No other nation in the world has a bank
/ ing system like ours. It's only redeem
ing features are that it holds the public
| q Fl at home and makes the circulation
safe. How do the other countries get
along? who ever heard of a bank note
of France or Germany or England or
even Canada that was not worth its face
/ in gold anywhere any day? when did
you hear of a currency panic in these
countries like the ones we have every
ten years. They seem to have solved the
problems of i safe, elastic currency for
their countries; and at the low interest
rates that are almost uniform: through
out their lands.
WHAT binders us from solving our prob
lem?
Hon. Lyman j. Gage. then secretary of
the treasury, once SAID to our commit
tee: Gentlemen, legislate along the lines
OF business practice, and not against it
You will come out right nine times out
of ten
I have not supported any remedy for
the restricted condition of our national
bank circulation. l have only asked your
attention to some conditions. The prob
lem is for so c00,OoO of people whose vast
business is greater than that Of any other
nation on earth.
Banking and Currency Law.
That is as far as l was able to prepare
manuscript. Now a few words about the
banking and currency committee. and
some things that have been sUg gested. l
have been member of ii ever since j
have been in congress. Mr.. Fowler. Mr..
Hill and myself entered that committee
at the same time. We have had substan-
TALLY the same problem before us all the !
time-the question of how to provide a
national banking currency that would /
give the same results as the one that we !
have and be as safe as the one that We I
have. and that would expand and con-
tract. 30 out and retire, according to the 4
conditions Of business, according 10 the 4
requirements Of business. The Hon. Jo-
seph Walker was chairman of our COM
mttee for six years. Two years Of that /
time | was out of congress. four years /
of the time l was with him. No other |
man in this country gave this subject 4
such a close study: but he was old enough
to remember the Suffolk bank system of
Massac husetts. which had provided for
the redemption of its own currency. All
Of its currency without having bonds put
up therefor and there never was a time
from the day they began ii until we taxed
this money out Of existence by putting a
tax Of 10 per cent upon its circuls ton,
that one of its notes was questioned.
The state bank Of Louisiana was in ex-
the war. No security was required be-
hind any Of its notes; no bonds were up
for any Of its notes 1t was required by
law to keep 50 PER cent Of its note circula-
ton in gold in its vaults for the purpose
n redeeming them on demand when they
would come in. There never was a time
when one OF its notes was below par
When General Butler entered the city Of
New orleans the notes OF the state bank
Of Louisiana were still circulating at
par. when the greenbacks and the notes
Z the United States were nearly 100 per
,ent below par. vita all the bonds behind
hem.
The state bank Of Tennessee without Z
ionar 81 bonds up behind its currency
never had q note that 1t did not pay IN
iemand When the rebels captured the
.ity OF Nashville General Cox went IN
ina took So % in gold out Of the bank.
I'D i IN the mountains until the war was
lver. FOR the purpose Of paving - the
.cteS q that old bank & they were ever !
PRESENTED. and long after the war was {
lver ard the tire OF peace came the
iotes 81 that cid bank we're gathered ~
nd brought into thu city and presented :
nd this 81 90 in gold was there to pay
hose notes on demand
Tn state bank II Iowa had note cir
ulsticn Of It's own with the bonds u !
- state W as security for IL The notes {
z TIE state hank ~ Iowa were az per
nd iu circulation spi were never dis Z
cilnted anywhere nor Hsre refused an1 :
here. the baqk remaining IN bcsiness
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