The Price Of Gold

! ITora tlie Xew York Worlilt Tliü proximitte caute of this advance in tho prico of gold is the alarm taken by intelligent business men atlfw baakj ing bill of Mr. Cnae. Thia banking act of Omgrcss unniliüatcs the lasf faint hopo of a return to a sound s_vi tem of tinunce by Mr. Chase. Tt. au , thorizes the cre'ation oí' $20),000,000 i more paper money by the banks, and inevitable expansión of b nik loans and net deposita - vvhich iire t Ij o same thing on Ihe debtor and creditor sido f thu ; blink ledger - to an extent of tour times the $270,000,000 of carreBey, or over ono thousund milKong of öollars, vvhk:h an be done with safety by the , bauks. The lefiitl-tonder iets of "Con; gresa were bad, hut they were "good" i in thuir resulta whon compared vvith ' this banking bill of tiio repubüoaa ptfrj The bank note circulation issned uni der Mr. Chase's banking bill xvill never be returned to tha banks fur payment Ro long as the legal ken (f er acts are permictcd bv the peopla to rcinnin in foree', beoause these bank notes will be better than legal tender notes They ar $270,000,000 of bank notes, secured by the pledge of tho governitient bonda bearing sis per cent. annual interest in eoin, and lways kept with a margin of ton per cent. under the tnnrket price ; and, benides, tho KtockhoIdüi-8 in the banks are responible to the public or bill holdera for any loss in n su:n equal to doublé the amount of the nhares held by them Legaf teniíer notes ure really nothing more than government bonds, beaiing no intcreot and vet a!ways valued at 100, vvhereas on" Tutwday the sixea of 1881 were sold ut 98%. The banks' note c'rculation v, ül be seaured by their pledge iit 90, hesiiie the responpibility of the stock'holders for any deficiency below tha. The banks are aötborized nnd can redeem tlieir note circulation by the payment pf legal tender noten - bul will the public want them ? Will they eschange the stronger security for tho v.eakur ?