Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1909-07-01

story over again, it is hard to make
a dishonest man honest; and bank
ing resolves itself into matter OF
confidence on the part of the deposit
or and the public generally In the
officers and men who run the Bank
If they are capable, efficient, honest
men, it is the best asset that any
bank can have, for upon that the
bank will prosper.
There was a very interesting ques-
ton which was propounded by Mr.,
Oster:
"Mr. Oster, in speaking on the simpli-
tication of the currency, said that the
attention of the country has been claim
ed by the struggle against financial strin-
gency caused by an 'outgrown currency
system and said that plans intended to
solve the problem have heretofore only
resulted in further complication. he
said that although large amount of
banking is done without help of note is
sues currency and banking are usually
closely associated.
"Gold certificates, he said, are simply
warehouse receipts for gold stored with
the Government; silver certificates are
receipts for so many dollars worth in
trinsically about so cents on the dollar;
greenbacks were but political device
for raising money in war time and Treas
ury notes were issued for the purchase
of silver bullion. Although the act au-
thorizing them, he said. was repealed in
the panic of 1893, these notes are also
counted as reserve.
"What are our national bank notes!
he went on. "Are they not equally as
we'll secured as our silver certificates,
greenbacks or Treasury notes, when they
have back of them double the capital OF
the issuing bank, when you consider the
double liability of the stakeholder and by
the surplus and principally and primarily
by deposit of Government bonds, pay
able in gold?
"Mr. John M. Nelson, of Hambleton 4
Co., bankers, of Baltimore, asked per
mission of the convention to reply to the
question asked by Mr. Oster.
"Mr. Nelson explained that the gol'
certificate is redeemable in gold, ant
while only $3.50, 600, 900 gold is held as
reserve to redeem S346, 900, 900 green
backs, the Secretary of the Treasury il
not only authorized, but instructed tt
sell bonds for gold, if necessary, to re
deem the whole issue of legal tende
greenbacks, that the silver certificate i
redeemable in silver dollars and that thu
silver dollars are at least one-half tn
value in real money, and for the othe
half the Government has made itself re
sponsible by agreeing to maintain silve
on parity with gold by receiving tn
silver certificate for customs and due
and these are by act of Congress mad
the legal tender.
"A national banknote, however, is no
money at ALL" he said, "but simply
promise to pay secured by another prom
Use to pay--a Government bond which
bond is payable, not on demand, but a
some future time.
"Supposing that the holder of $40, OO
of the notes of the National Howard
Bank should present them at the counte
of this bank for payment, and the cashie
should tender in payment the notes o
the National Howard Bank, it may wei
/ be considered what might happen.
"A national bank note does not ditfeI
in any respect from cashiers check o
from certificate of deposit issued b.
the bank, and it would be just as wis.,
/ for bank to hold in reserve the checl
of it's cashier on the bank itself, as i
would for it to hold national bank note
"The National Banking act absolutel,
prohibits the holding of national banl
notes in the reserve of national banks
"This, think, answers Mr.. Oster':
question why national bank note is moi
as good as a greenback to be held in thu
reserve