Fix this text
DUN’S GAZETTE
Fix this textFOR NEW SOUTH WALES.
Fix this textVOL. lI—No. 2
Fix this textMONDAY, JULY 12, 1909.
Fix this text(Published Weekly and Daily
Fix this textNOTE ISSUES BY BANKS OR BY THE
Fix this textGOVERNMENT.
Fix this textThe following American view of this ques-
Fix this texttion, taken from a recent issue of “Scribner's
Fix this textMagazine,” is from the pen of Mr. J. Lawrence
Fix this textLaughlin, who says:
Fix this text• “W hen we ' come to positive arguments in
Fix this textfavour of assigning to banks the ciuty or is-
Fix this textsuing the notes needed by the. trade qf our
Fix this textcountry, we are obliged to ask: What other
Fix this textinstitutions than banks exist which can know
Fix this textwhen and how much a. demand exists ror notes
Fix this textin transactions which cannot be performed by
Fix this textcheques? Certainly, Congress, cannot know.
Fix this textWhether we like banks or not, the fact is that
Fix this textthey are the institutions of credit, evolved by
Fix this textcenturies to serve the needs of trade; and
Fix this textwhether they like it or not, the banks must
Fix this textsatisfy these needs, or cease- to exist. Through
Fix this textthem idle, and new funds pass into the hands
Fix this textof producers; they disburse capital; and they
Fix this textalone can know in just what way , the public
Fix this textwish the capital transferred to. it-r-whetber
Fix this textthrough the medium of gold, silver, paper money
Fix this textor cheques. In this respect, the bank ■ is the
Fix this textslave of the business public. If the public wish
Fix this textonly a deposit account, the banks provide it;
Fix this textif they wish notes, the banks must give notes.
Fix this textIf such be the case, the banks are the only or-
Fix this textganisations which can provide an elastic cur-
Fix this textrency. The Treasury cannot do it. As a
Fix this textmatter of fact, the greenbacks have been rigid-
Fix this textly limited since 1878. Although tne present
Fix this textbond circulation of the banks can neyer be
Fix this textanything but elastic, since the amount of notes
Fix this textis made to depend upon the price of bonds an>
Fix this textthe rate of interest, the banks can ue g:ven a
Fix this textsafe method of issues, quickly redeema-ye, suen
Fix this textas would provide the necessary seasoned elas-
Fix this textticity not possible in Government issues—elas-
Fix this textticity. of course, which contracts as well as
Fix this textexpands. Leaving the elasticity to the banks
Fix this textis the only democratic way.
Fix this textELASTICITY IN TIME OF CRISIS.
Fix this textFar different, from this seasonal
Fix this textelasticity is the- demand for elasticity in a time
Fix this textof crisis. In such a crisis as that of 1907,
Fix this textwhen an antecedent expansion of speculation,
Fix this textundue rise 1 of prices and 1 reckless promotion had
Fix this textpaved the way for disaster, an elastic cur-
Fix this textrency, although it could not have prevented the
Fix this textpanic, would yet have in a great measure modi-
Fix this textfied the severity of the crisis. In times of
Fix this textemergency such as this, instant response to the
Fix this textneed, and at the spot where the need exists,
Fix this textcould have been made only by the hanks to their
Fix this textborrowers. A Treasury expansion, publicly ad-
Fix this textvertised.. would have been a certain means of
Fix this textfrightening depositors and borrowers, and
Fix this textwould have aggravated the disaster. It being
Fix this textunderstood that convertibility into gold is the
Fix this textprime requisite either of Government or bank
Fix this textissues. It is appropriate to note that the cost
Fix this textof maintaining coin reserves, which we fourui
Fix this textto be so heavy in the case of the greennacKs,
Fix this textwould be removed from the people and put
Fix this textwholly upon: the banks, were the latter to; b.e
Fix this textrequired to furnish notes. , In truth, the uanks
Fix this textwould never, have any real difficulty in main-
Fix this texttaining gold payments, provided the govern-
Fix this textment preserved the gold Standard anu re-
Fix this textdeemed its own obligations in gold. . The
Fix this textnational bank note has. from the beginning al-
Fix this textways been as good as the. Government note into
Fix this textwhich it was convertible; and the most signi-
Fix this textficant thing in this result is that the national
Fix this textbank notes have not been and are not now a
Fix this textfull legal tender. Clearly enough, more de-
Fix this textpendis on redeemability than on legal tender.
Fix this textFULFILLING OBLIGATIONS.
Fix this textIf the Government at any time needs gold it
Fix this texthas to go to' the banks'op to allied institutions
Fix this textto get it. But if the banks were delinquent in
Fix this textmaintaining redemption, have we any means of
Fix this textcompulsion to keep them up to the mark? Cer-
Fix this texttainly the bank occupies a better position in
Fix this textthis respect than the Government. A bank
Fix this textfailing to redeem can be immediately sued in
Fix this textthe courts, and can be obliged to keep its
Fix this textpromises or go into liquidation. Not so with
Fix this textthe Treasury/ If the Treasury ceases to re-
Fix this textdeem it cannot be compelled ,to fulfil its ob-
Fix this textligations against its own consent. Only if
Fix this textCongress' -permits can the holder of its ' note ;
Fix this textproceed against the Government for failure to
Fix this textrede-em. For . seventeen years, 1862-1-878, . the
Fix this textGovernment was in fact derelict in paving coin,
Fix this textand was able to do so. with impunity. The
Fix this textgreat wealth of the country did nor save us'
Fix this textfrom this ignominy. Yet the opinion is pre-
Fix this textvalent that the whole wealth of the nation lies
Fix this textbehind the Government paper, ror which the
Fix this textcredit of the country is pledged. Therefore,
Fix this textGovernment issues would have a greaier safety
Fix this textthan those of banks.
Fix this textPARER MONEY AND COUNTRY’S WEALTH.
Fix this textThen, if there is no limit „J.o taxation and
Fix this textborrowing, say Government paper advocates,
Fix this textthe State can always secure gold enough to
Fix this textmaintain its paper at par. But men do not
Fix this textalways do what they ought to cso. And if
Fix this textthere is boundless wealth, but if none of it is
Fix this texttaken to secure the paper, the great wealth of
Fix this textthe country adds no more value to the paper
Fix this textthan a summer’s crop of thistledown. More-
Fix this textover, the Treasury may have reached its limits
Fix this textof taxation and borrowing by expenditures for
Fix this textwar, or for things other than the paper money.
Fix this textAnd since it cannot be required by court pro-
Fix this textcedure to redeem its money, if it wishes riot to
Fix this textredeem, then it is clear that the character or
Fix this textthe paper is dependent not on the wealth of
Fix this textthe country, but on the whims of Congress to
Fix this textwhom the currency is subject. The case Is
Fix this texteven more favorable for the banks than this.
Fix this textApply to Government paper the same test as
Fix this textthat ‘applied to bank notes. If a bank issues
Fix this textits notes as a result of a loan, it must receive
Fix this textassets in the form of securities as an equiva-
Fix this textlent.
Fix this textFAVOURING BANK .ISSUES.
Fix this text■Since the quality of the Government paper
Fix this textis not really maintained by the wealth of a
Fix this textcountrv—any more than the thirst of a prisoner
Fix this textin a dungeon is slaked from the cool lake he
Fix this textsees outside —it is obvious that the value of
Fix this textthe paper is determined by the action of a Con-
Fix this textgress usualy made up of active politicians. In
Fix this textshort. Government notes are at the mercy of
Fix this textevery passing whim of the voters 1 , whom the
Fix this textpoliticians sedulously court. Money should be
Fix this textleft to experts; but, in fact, Government paper
Fix this textnever can be so left, as long as it is trie play-
Fix this textthing of politics. That is the curse of all
Fix this textGovernment issues of notes, just as it is the
Fix this textcurse of custom duties which are made political
Fix this textissues.. Therefore, the strongest possible
Fix this textreason for relegating the system of paper Is-
Fix this textsues to the banks, under general rules fully
Fix this textproviding for elasticity and safety, is that they
Fix this textwould be entirely removed from politics. If no
Fix this textother argument were presented this one alone,
Fix this textjudging not by theory, but by actual experi-
Fix this textence, should be sufficient to induce us to de-
Fix this textcide in favour of bank issues. And this con-
Fix this textclusion seems to have been already reached
Fix this textby those great commercial nations which are
Fix this textour closest rivals for the trade of the world.
Fix this textTenders.
Fix this textGovernment Architect.
Fix this textRepairs to public school, Fairy Meadow, near
Fix this textWollongong. July 19.
Fix this textErection of new school for infants, public
Fix this textschool Haberfield. July 26.
Fix this textAdditions to public school, •Cat-heart.. July 26..
Fix this textRepairs- to pilot’s residence, Pilot Station, Bel-
Fix this textlinger Heads. July 26.
Fix this textRoads and Rridges.
Fix this textErection of timber beam bridge over reel River
Fix this textat. Somerton, road Somerton to Manilla.
Fix this textAugust 9. *
Fix this textRailway roV'TRucTiON.
Fix this textErection of station buildings, Casino to Kyo.gle
Fix this textRailway (Contract No. 6). August 3.
Fix this textConstruction of an excavated tank at Tulla-
Fix this textmore, Bogan Gate to Bulb-odney Railway.
Fix this textAugust 3.
Fix this textRivers, Water Supply and Drainage.
Fix this textConstruction of embanked tank and fixing in
Fix this textposition, wind,milt and pumping appliances
Fix this textat Hungerford Bore (Contract No. 858).
Fix this textAugust 16.
Fix this textAccepted
Fix this textEarnes, T., North Sydney—Erection of dining
Fix this textroom and kitchen at Hospital tor Insane,,
Fix this textParramatta. £2349 ss.
Fix this textCourtney, Wm., M'oree—'Sinking artesian bore
Fix this textin Bcolooroo Bore Water Trust District
Fix this textContract No. 857. One per cent, above-
Fix this textschedule rates.
Fix this textDevitt, John, The Oaks—Additions and altera-
Fix this texttions to Court-house, Inverell. £643 12s.
Fix this textFarley. W.. Sydney—Erection • a technical
Fix this textcollege at Granville. £4:929.
Fix this textFro-st & Folkhard. Strathfieldi—Alterations, etc.,
Fix this textto operating block and building new oper-
Fix this textating room at Coast Hospital, Little Bay.
Fix this text£409.
Fix this textHenrikson & Knutson, Enmore —'Construction of
Fix this textLockhart to Clear Hills Railway, Section 1,
Fix this textContract 1. Schedule rates.
Fix this textHood. R., iunr.—'Additions to rifle range, Picton.
Fix this text£B4 15s.
Fix this textLone. A. J.. Granville —Additions to post office,
Fix this textParramatta N. £B7 9-s.
Fix this textMcDonald. J.. Leichhardt—(General repairs and
Fix this textpainting to twelve cabmen's shelters at
Fix this textGlebe. Rand wick. North 'Sydney. Petersham,
Fix this textLewisham. Summer Hill. Ashfield, Croydon,
Fix this textBurwood and Strathfield. £46 5s 3d.
Fix this textQuigley. H. & E. Stafford, Dorrivo W. —Dor-
Fix this textrisro branch road. Ke-mnsey District, Con-
Fix this texttract No. 72/08-09. £372 los 6d.
Fix this textIt's easy and takes two shakes of a lamb's tail!
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http://nla.gov.au/nla.obj-757479211
(1909). Dun's gazette for New South Wales Retrieved July 30, 2025, from http://nla.gov.au/nla.obj-757479211
Dun's gazette for New South Wales Sydney: Dun's Gazette, 1909. Web. 30 July 2025 <http://nla.gov.au/nla.obj-757479211>
1909, Dun's gazette for New South Wales Dun's Gazette, Sydney viewed 30 July 2025 http://nla.gov.au/nla.obj-757479211
{{Citation
|
| title=Dun's gazette for New South Wales.
| year=1909
| section=v. ; 30 cm.
| issue=Vol. 2 No. 2 (July 12, 1909)
| location=Sydney
| publisher=Dun's Gazette
| url=http://nla.gov.au/nla.obj-757479211
| id=nla.obj-757479211
| access-date=30 July 2025
| via=Trove
}}
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