New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-01

much nssded egETsne they must rsS s 1ssH' t ~.
this reserve they you'd not have needed the
tSe9 mho9s TINS increase in surplus TsseEys
Surplus SUP they 90 not need the currency Ara not
system? VIII some one explain?
FAvORs GOVERNMENT GUARANTEE
OF banknote circulation in excess Of the par vslus
Of .epaSats ana distinct kind I o3 of:nev taE
my Judgment. this additional circulation should bs
guaranteed by the government, and the fact ~
corded on the present banknots 70 the effect that
Bonds Should he emi5Stsd sG m , % g6s s
note should contain the following: This note Is
The present banknots IS guaranteed by the United
states for it Is secured BY deposit OF bonds. and
United States Is promised without even waiting 10
ss tbG 2oSas deposited as eoilatsTaL The small
would afford abundant protection to tbs govern
and the government should be the undsrwritsr. X
this way no new form OF currency would be IN
versifsd enough. 1t would also subject our s5ti-.
issue OF banknote circulation TO the eleulent OF
Suppose s2oooooooo additional circulation var.
notss The entfs ro I6 % " f fs 92nq sssr
circulation would then be elastic for L would ali
for the new kind In sdditicn. the banks should
be required to retire at least once per annum any
Assuming then that all national banks would take
mum the maximum allowed BY Law. we would h1vs
an annual compulsory contraction OF 800 0n0op
In addition TO this theirs should be authorized an
issue equally large, taxed at not less than per
cent with no requirement. as TO reserve The high
rate OF tax would compel its retirement when nos
1t Is idle to require EsssFvs ssas
IS what makes the emergency
II any legislation is 20 be had let 70 be EoIefy fo-
the purpose OF relieving the country from these
frequently recurring l4.ngenCtes. No plan should
be devised primarily 70 enable the banks 10 make
fairly well now and business is prosperous Never
theless confronted several times a wear
with conditions admittedly dangerous 81 ola
De devised which VIII eftectually protect against
this danger and all Will be we'll doubt not the
proposed legislation would prove profitable to ma
tonal banks, especially elsewhere than IN reserve
ana central reserve cities. but do not believe It
would result IN percsptibe elasticity In other
words, its remedial features Inadequate and
remedial legislation is all we need
Walter Alexander presided at the dinner The
guests Of honor. in addition 70 Secretary Shaw.
were: Bishop Ethelbert Talbot. OF Central Penn
sylvania; Herman \. Metz. Melville f. Stoas.
Marion j. Nerdery. president OF the New York
southern society General Granville NJ. Dodge,
president of the Iowa Society; DR. William ~.
McCook, president OF the Ohio Society: tho Rev j.
hewitt Steele. president Of the Maryland Society:
Club. and Lee Fairchild
ner over in Brooklyn, which he had almost foF-
gotten but he had TO stay hear Secretarv shaw
IN the hope that he might get a tip as 20 where "a
was coming out with his $50 10000 bond sale to-day
Secretary Shaw. he said. was not the only man
who stayed awake nights when a bond sale vas
on. He said 1t was hard lines when be was
ashamed to oner the fnanciers less interest than
they could get IN the Street for their money.
abroad.