The sun., 1907-12-03

ont gold. The origin of the crisis WINS "a
be so,txht muinly in a TOO great expansion
OF GsnteRprise Of every nature. both corporate
and individual. This. as a consequence,
caused stFaining Of financial require,
menta, and particularly ~ credit. beyond
legitimate liEaita.
limited States Treasurer Charles n. Treat
spoke On "The Read iuatIneni OF Our Banking
system and the Unihcation Of the Cur
rency."
~soInethinE should be DONE he said.
"tO place the monetary system On IA broad
and cOnaprehensiVe bakiA hat would stand
for 4 century al least.
IL advise legislation by Congress-" he
said, authorizing the Secretary ol the
Treasury 10 retire United States notes in
sums not less than $50 ON ma nor exceeding Z
kIOsl mo !OOO per annun The payment OF
the United States notes and the releasing Y
If the reserve fund for their redemption
would give "A legal reserve Of about $780,
I'M OA0 in gold for banking piIrpOses."
lie thought that the Increased supply Of
gold was an assurance that there need bt. no
apprehension Of sufficient iegai reserve
in case $50 600 QUO or 500 100 ,000 per annum
Of greenhacks were replaced hy gold coin.
II the gradual retirement OF greenbacks
WIS shown to be the settled policy Of the
GOvernInent this would give rise to an EN-
hAncement OF credit of the country, and
the financial repute thsrsrrOm would out
weigh any saving Of the interest account
investor aud promote larger growth OF
the national banking system.
advise" he said, the retirement Of
all outstanding silver cert ertiicates-st75,-
UUO DOC- and to ssIle therefor 2 per cent.
United States fifty year bond for an amount
not exceeding SJO.OOO.'UO 10 SlUh,O0 ,OOO per
annIun. The silver dollars 40 released
from pledge 20 pay silver certificates
could be utilized far the Government =
need Of subsidiary coin.
u.Hild aHuiaa thai tho faatna
Of national bank notes be retired aud that
the Government bonds 40 pledged for
circulation AMI payment be redeemed
10y special bond known az a banking
bond, bearing interest az per cent. for 4
term OT not less than Atty years, and that
such bonds as are now held for circulat ion
shallbe redeemed and paid for at "a premium
Of . pSr cent. To reimburse the averag ge
cOsI To the investor.
"'Ihs sale and purchase Of these banking
bonds should be under the absolute control
Of the Government, and when q bank de-
sired TO rel ire its circulation the Govern
ment should blIy the bonds at not lsas than
par and without premium. This would do
much tO prevent the daily speculation ia
Government bonds. The bonds ~ pur-
chased should be des TOy,,d. Tie. denOm-
nations Of the bonds should not bc Irss than,
SI0. .O0O nor more thaA sIUO.OOJ.
"rhe bonds to be issued for the retire
ment OG silver certificates should also be
banking bonds. This would Furnish the
basis Uf additional circulation without
cont racing the yOuine Of currency and the
total anIonht Of $500 OOO OO9, which is the
measure Of the volume ~ sii yer certihCass
would then be reisTIrd Ia the form Or na
tional currency.
The new issue of bank notes should
be known Gs United States national bank
currency This resignation would give
il an International recognition, aud the
sentimental effect Of such a DESTINATION
world inspire worldwide confidence iu its
yaniIneuess and its financial respons sil iliIy."
What this country needs is not only an
enlargement Of banking credit az crop
moving seasons but also the est q blishment
Ut a system whereby the panicky cOntli-
liOns that recur every seven or ten vrarS
NAV he. met he concluded