Paper Currency. 



will be impossible for any one nation to attempt to regulate the com- 

 mercial value of silver or any other commodity. There should be an 

 international agreement, so that whatever is used as money in settle- 

 ments between the people of different nations will have very nearly 

 the same commercial value the world over. Let us hope that the time 

 may come when the value of a coin will be the same in Albany, Lon- 

 don, Paris, and all the other commercial centers in the world. 



Perfect money must be something which will be received at a fixed 

 value in any of the commercial centers of the world; so that it will 

 not depreciate in value by use, be easily handled and carried about 

 the person, be elastic, so that the volume will expand and contract 

 readily, and that there will be just enough and not too much to meet 

 the needs of an increasing population, the growth of business, and au- 

 tomatically reduce its own volume to the requirements of the dull 

 business season, never requiring the locking up of funds in a com- 

 modity or loss of interest at the source of issue. No matter how 

 much or how little currency there is in the country, unless there 

 is some way provided for its expansion and contraction, it will 

 never meet the requirements of the expansion and contraction of 

 trade. During the activity of business, currency must be had to 

 make settlements with and a way must be provided for its absorption 

 when it returns to its source of issue or to the money centers.- Af- 

 ter the demand for currency for moving the crops has been supplied, 

 people begin to pay their debts, and the money, through the various 

 channels of business settlements, gravitates toward the commercial 

 centers and there collects in the banks. Stockholders are looking for 

 dividends, and every one connected with the management of a bank 

 knows that he must be wide awake in these days and keep the money 

 earning something. Any body who has good collateral to offer, takes 

 the money. Speculation is excited, the money is all in use, and when 

 toe season for moving the crops comes around again there is no money 

 on hand. 



The people have allowed themselves to feel that the public treasury 

 can supply the financial needs of the people. The government has 

 been in the habit of allowing the idle currency to accumulate in its 

 vaults during the season when it was not needed for use, and then, in 

 the fa U> purchasing bonds aud paying out the currency for them. But 

 the time is not far off when the bonds will be scarce, the price high, 

 and the plan of having the government purchase bonds to relieve the 

 money market, will not meet the situation. 



For some years past the National banks have derived little or no 



