Newspaper Page Text
GER & WALTON, AT THE
ORPHEUM NEXT W.EEK
I
I
. THEATRE
Advanced Vaudiville
ALL NEXT WEEK
LA SCALA SEXTETTE
In Grand Opera Gems
"SLIVERS" AND SIEGRIST
European Comedy Pantomimists
GEORGE WILSON
The Best of all Minstrels "That's
i All"
EVA MUDGE
"The Military Maid"
GEIGER & WALTERS
Musical Novelty, "In the Streets
Of Italy"
' TWO VIVIANS
America's Greatest Sharp-Shooters
! KINODROME Motion Pictures
ORPHEUM ORCHESTRA.
I ,
Every Evening (except Sunday)'
75c, 50c, 25c. Box seat, $1.00
Matinees Daily (except Sunday
' and Monday),' 50c, 35c, 10c. Box
seat, 75c. '
Lyric Theatre
DIRECTION
SULLIVAN & CONSIDINE
R. P. HERRICK, Res. Manager.
R. A. GRANT, Gen'l Manager.
The Moore Stock Co., direction
Frederick Moore, offering
"FOUL PLAY."
Next Week
'COWBOY'S HONOR."
Special Matinee Christmas Day.
Week's performance under hc
auspices of the Ladies' G. A. R.
Military Band.
Special band concert in front of
Theatre before each performance.
Matinees Wednesday and Satur
day 2:30. Usual prices 10, 20 and
30 cents.
"GET THE LYRIC HABIT"
nient bonds in qrdcr to get the cur
rency This creates a demand for
such bonds. These bonds, being like
any commodity, rise in price when the
demand is grcaf. The result is that
a very high premium exists on gov
ernment bonds. National banks only
buy them because they have to. Thi
makes the issuance of currency a
rather expensive luxury. Fdr ex
ample, if a national bank at the time
this article is written wanted to get
$100,000 in bills, it would have to pay
$107,000 for the bonds to be deposited
to obtain those bills. Thus $7000 of
the bank's money is used as a prem
ium. Of course these bonds pay in
terest, but it is seldom over two per
cent, and at the high price paid for
them and as an investment they would
yield under two per cent.
Large Capital, Small' Circulation.
Now all banks arc in business to
make money. Except in the case of
savings banks they arc not a philan
thropic institution. Therefore they
do not want to get their money ti
up in government bonds (to be used
as a deposit for currency) when these
funds could be more profitably em
ployed elsewhere. For this reason
some of the greatest national banks
have in circulation a very small
amount of currency in proportion to
their capitalization. The National
Bank of North America, in New
York, for instance, which has a capit
alization of $2,000,000, has only $50,
000 outstanding in circulation, and this
is the minimum allowed by the Na
tional Banking Act for banks of this
capital.
This high premium on issuing na
tional bank currency causes all the
newspaper and other talk about "a
remedy for the currency." The
phrase, "a more elastic currency,"
simply means that bankers want the
National Bank Act amended so as to
permit the deposit of securities other
than government bonds for the issue
of bills. It is claimed that high-class
savings bank bonds would serve the
same purpose and yet not be so hard
or so expensive to get as government
bonds.
It follows that in times of financial
stringency, when national banks are
complaining about a scarcity of cur
rency, they have only themselves to
blame, because they have not issued
all the money that the law permitted
them to issue. This fact stands out
strikingly when you 'compare the H
legal and Uic actual circulation. H
The total legal limit of circulation H
is the total paid-up capital of the 11a- H
tional banks, which, at the present B
time, is a little over $900,000,000. The H
actual national bank circulation H
(which is currency outstanding), as H
reported to the controller of the cur- H
rency on November 1, was $609,980,- H
000. Of this amount, however, $47,- H
253,000 had been deposited by the H
banks in legal tender for redemption H
purposes and to retire bonds. There- H
fore the total circulation on Novem- H
bcr 1 was really $562,727,000. U
Since the first of November, and on M
account of the panic in October, about
$20,000,000 in new notes has been is- H
sued, and. with the applications now H
on file, this amount will be increased H
to $25,000,000, which would make the H
total actual circulation $587,727,000. M
When you subtract this from the M
legal limit of circulation you find that M
the national banks arc shy just $312,- H
273,000. In other ords, if the national M
banks had issued all the bills that the M
National .Bank Act permitted them to M
bring out, there would be just $312,- H
273,000 more money in circultaion. M
The government has taken steps M
from time to time to increase the cir- M
dilation of national currency. It be- M
gan actively in 190- with Secretary H
Leslie M. Shaw, who offered to ac- M
cept collateral other than government M
bonds as security for government de- M
posits, but with the understanding M
that the government bonds which M
were thus released would be used as M
a basis for currency. At that time H
the actual circulation was $324,000," M
000. It has nearly doubled since. M
Thc Post. H
PRESTON'S LEADING STORE. H
John Larson & Sons are the lead- 'H
ing general merchants of Preston, H
Idaho. Their business is nearly as M
old as the city, and in all those years, H
more than thirty, no one can say or H
has any disposition to say anything H
but that Larson's is a reliable place H
to deal and to do business with. Fair H
treatment, honest goods and sterling H
honesty count everywhere. These are H
the characteristics of the Larson es- H
tablishment, the leader not only in H
Preston city, but in all that region in H
mercantile pursuits. H
Christmas, the time for good cheer H
is almost here. Nothing contrjbutc. H
moic to good feeling and benevolent """!
impulses than good things to cat and H
drink. We have the finest wines and H
whiskeys in town and the largest H
stock of cigars. H
RIEGER & LINDLEY, I
The Whiskey Merchants. H
For Christmas presents nothing is H
more suitable than some Private Old H
Kentucgy Bourbon Whiskey or Cre?- " I
sida (Gato 1871) clear Havana cigars. . ' H
