New-York tribune., 1906-12-23
PLENTY OF CURRENCY.
But President of Trust Company
Says the Country Is WGstefUI.
To the Editor Of The Tribune.

To ths Editor Of The Tribune.
Sir; AS president Of a New York trust company
ana a director Of a national bank. naturally
called upon 20 consider banking questions OF an
essentially different nature. The currency prob
lem therefore presents itself TO from the point
Of view OF the trust company. the one hand
and OF the national bank the other
Ths trust company Is the modern extension OF the
savings bank and Of the bank OF deposit. It's de-
positors are Of class which neither OF the older
Institutions effectively reaches IL handles estates
and trust funds. 1t affords place for the safe de-
posft, at fair rate Of interest OF unemployed in
vestrnsnt moneys TO any amount The payment Of
interest has brought out vast sums Of boarded
money. So that IN trust companies and the savings
banks trustees. investors, wage earners and the
savings OF labor are by state laws. amply accom-
nodated and fully protected.
Aside from the annual output Of he gold and
silver mines. the national banks and the federal
government the only lawful producers Of money
This monsy-sold. silver and papeF-is now ex-
changeahls, dollar for dollar. IN the mOnsy marts
OF the world.
The question is. Is our stock Of monsy. on hand
and In circulation. sufficient 70 supply the Iegt,i-
mate mat demands Of the country's increasing trade
me amendment of March u 1900 to The Ma
ooJect and under normal conditions and the eco
c9cnaon use theFebx STeGS 1T6ide & eIgbt 10 Se aDy
sufficient This act permitted all national banks
deposited govTnsn y bonds S0 ss sn In ord to @
nsh the country districts with banking facilities
thorized the establishment Of small national Banks
with q minimum capital Of $4,000.
ago. are not always appreciated Since 1870 the
percentage Of outstanding circulation 70 paid up
capital Increased from % per cent in Deeenoer.
cent In September, 1896, and four banks only have
is now 6,1S7, an increase for the year OF $50 Our
IN E10f5 EnsaRd GE e n ga 5x Is @ Hd ~ @ as q sssS n & m 3
uF total y @ sHoe5 & @ 9I money Is now S0os9oGeg; as
twelve rnoatns Of 100000 surely this ought to
oe enough Last year the ayerage circulation per
was only 81 10 The total + circ1ter In June last
was A.7oO0oO00e-ot which 0Oo;0G0 was lawful
money and usable as reServe-an Increase for the
year to the enormous amount OF s133 100000.
Increased from about 6 Coo00 last year to only
AOo9O00 this year. In other words. while the
per cent yet the increase in circulation has been
pesed @ Of 1eovsad eseS T eaa ensy snS For
crop moving purposes 70 last years proportfo1ats
This would bring next years circulation up to the
gigantic total Of nearly 81 oO9 900 600 which would
soon pc used IN speculation. Who can foresee what
The trouble Hes not IN our lack Of money. but
more than s265, 900 900 OF customs duties the
IN the oonn{Tys bgsDss There M IS n more IseSs e
cuse for the government locking Up this vast sum
than there would be for any business man to DO So
These collections should be promptly deposited in
should be kept in separate fund as an insurance
Let remember that the last few years have been
years o1 unequaled commercial. industrial and
agricultural activity, and that the demand for
reucy has been abnormal A widespread specula-
ttou IN stocks and real estate. anticipating IN value
the country's growth for several years, and the
reckless crazy speculation IN mining stocks have
withdrawn vast sums from the banks. The enOr
nous destruction Of values caused by the San
Francisco disaster has had to be made good IN cash
Railroads and indusuials have not only hugely IN
creased their capitalization for costly improve
rnents but have also largely increased their dtvt-
dends, The prices Of food. clothing and lodging
have been marked up. and SO have wages. Hish
abroad and persistent inpOrtations OF gold have
caused the Bank Of England TO raise It's discount
rate per cent the highest point for many years
The Imperial Bank Of Germany has recently In
creased its discount rate 10 per cent RrSsia's
debt 70 France Is stiH unpaid
The first principle OF commerce Is confidence. Is
that confidence beginning 20 be shaken? At
any rate. Il would seem as II the commercial ma
chine Is petng driven under pretty high pressure.
Il, then. the business q the country has become ex
banded beyond what has been heretofore regarded
as the safety point, Is IL not better 70 blow of
steam rather than 20 force the bo1ler9
JULIAN D. FAIRCELD.
New York. Deo s2. 1906.