Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-26

denominations, would undoubtedly come
into use for the purpose of the retail trade.
Under the proposed plan banks would pay
out their own notes and present the notes
OF other banks for redemption, and the fact
cannot be too strongly emphasized that
with ample facilities for redemption infla-
ton is impossible. The notes would remain
i'll use only to serve a business need. and so
long as they served such need they would
be promoting the interests of all, and when
the demand slackened they should and will,
logically and naturally, seek the nearest
point of redemption
Would Serve the Public Interest.
Il believe such currency would ma
terially serve the public interest relieving
and preventing the periodic stringences
which occur under existing laws No cur
rency system can relieve such a money
stringency as exists at the present time for
the reason that it is more question of
mobile capital than currency. This is evil
denced by the fact that practically the same
condition of money stringency exists
throughout the world. 1t is a call for CAPT.
tai rather than currency but currency -
the barometer that measures the intensity
OF the demand. The remedy is a careful
and econom; cal administration of affairs
until our mines. our crops, and our indus
tries produce sufficient wealth to offset the
loss and destruction by war and the e!e
ments, and in addition the accumulated
wealth must equal the credits created in
anticipation of future development. Judged
from a historical and scientific standpoint.
the currency system of a country best
be administered through the fundamentally
of central bank of issue.
The Bank of England rate. the Bank of
France rate, and the Bank OF Germany
rate exercise a controlling influence in
those countries by force of example and
force of competition. BY example. well
as money power, similar institutions could
he made to exercise most wholesome in
huence in bringing about more uniform
rate of interest throughout our country.
With this pronounced trend in favor of
ntraliZatiOn, with the popular and grow
ing amand that all corporations national In
their scope and character, be regulated by
the national government is 1t not logical
and fair to assume that public sentiment
will presently demand that the govern
ment's receipts and disbursements shall be
made through central bank, thereby
keeping funds in the channels of commerce
and avoiding the embarrassment and in
jury which result from the absorption of
funds and the subsequent deposit of the
same in lump sum in the banks, which is
the practical working of our subtreasury
system. And will not an int 9lligent public
sentiment demand that our currency-the
life-blood of all ndustry-be regulated and
controlled through the fundamentally of a
govsrnment-controiled central bank of is
SUI?
The very people who inveigh against
banks as Il whole will presently demand
this in furtherance of the purposes they
now have at heart. Why viii not a gov
ernm ant controlled central bank of issue
where the banks of the country in good
credit can, within proper litigatonS, dis
count their receivables, receiving the pro-
ceeds thereof in bank notes, afford the best
solution of the currency question: