146 THE FARMER AS A BUSINESS MAN. 



wealthy would be better informed about them and not take 

 them. There would be more counterfeiting, and there would not 

 be the aid of the exceedingly efficient secret service with which 

 the United States Treasury protects national government inter- 

 ests. The notes would assuredly not circulate at par in all 

 parts of the country. As no reversion to this system is likely 

 to be seriously considered, sufficient has been said on this 

 subject. 



Another measure proposed, and what has found much 

 favor in banking circles, is that the privilege of issuing paper 

 currency should be given, exclusively, to national banks, 

 under government regulation and supervision, the entire assets 

 of all banks to be security for the redemption of the notes of 

 all banks, and a redemption fund to be provided by an 

 annual tax on circulation. 



This would certainly give an "elastic" currency, as banks 

 would extend and contract their circulation according to the 

 demand for loans. A large body of people object to it in the 

 belief that bankers would combine to withdraw circulation for 

 the purpose of raising rates. While this would not be very 

 likely, the popular fear of it will probably prevent its adoption 

 in the near future. There is also an objection to the measure 

 on the part of some strong banks who will object to l)e bound 

 to aid in the redemption of weak banks except under condi- 

 tions to which the latter would object. It is not impossible 

 that this proposal may become the subject of active popular 

 discussion, but it has not yet become so. 



The question then remains whether the general interests 

 of the country will be best served by national bank-notes or 

 government issues. This is a topic debated with some })assion. 

 It is claimed by those favoring government issues only some- 

 what as follows : — 



1. That it is necessary to restrict the great power of the 

 banks. 



The answer to this is, as already shown, that depriving 

 them of the exclusive privilege of issuing notes under present 

 conditions would affect them but very little. 



2. That the government would save the interest upon the 



