MR. MERCHANT: Well, Mr. Lawyer, your entire argument goes to demonstrate with mathematical certainty that the country banks would never have any occasion whatever to send to New York for currency, as they would create their own currency by converting bank book credits into bank note credits to meet all ordinary demands, a fact that not only accentuates, but proves more conclusively what you are saying, and reinforces your argument. Should we be fortunate enough to secure a right kind of banking system in this respect, we could almost double our bank reserves, that is, make them twice as large, and yet make two or three times as much profit on that part of the banking business, growing out of the substitution of credit notes for reserves, and at the same time be vastly better able to protect the balance of our business from disturbance due to the fact that we are compelled to use reserve money for currency purposes. This now seems to me a very simple matter when you once have grasped it. MR. BANKER: In this connection I want to call your attention to this fact, and I want to note that it is a very important fact which was so obvious in connection with every single statement of capital, specie, circulation and deposit, that has been given, when referring to the banking systems before the war, and that's this: that the note issues did not begin to average one-half the authorized amounts, proving conclusively that the currency of these banks invariably adapted itself to the exact needs of the people. Notes Outstanding Possible Issue was Per Specie Held Deposits Cent of Possible Issue Louisiana $11,579,000 No limit except $12,115,000 $19,777,000 33% Coin Reserve Ohio $9,057,000 $10,000,000 About $9,057,000 $11,697,000 Par Indiana $5,753,000 No limit but a $1,917,000 $1,186,000 12-1/2% penalty for failure to redeem in coin Iowa $1,439,000 $2,096,000 70% $389,800 $2,851,000 Virginia $9,821,000 $14,725,000 70% $2,943,000 $7,729,000 Missouri $4,037,000 $10,998,000 38% $3,666,000 $3,434,000 Suffolk System $44,000,000 $131,000,000 30% $10,058,995 $41,208,000 _Can anyone doubt, after noting these figures, that the note issues of the various banking systems kept as perfect pace with the requirements of trade, as checks and drafts do? Certainly it is perfectly evident that the bank notes came and went precisely as all bank credit should._