Los Angeles herald., 1891-09-14
LETTER BAG
Judge r. NJ. widney's FIna ncial Scheme
Analysed.

Judge r. Nj. Widney's Flna ncial Scheme
Analysed.
Periods of commercial depression,
great financial panics, times Of universal
business distrust, prolonged waves OF
hard times invariably produce large
crop of financial remedlee. AS the
prospectus of new patent medicine,
each particular remedy is advertised as
a specific for the evils mentioned. The
warrants to cure are always conspicuous
on the label, and the should-be added
words-or kill are left to the expert
ence OF the receiver. Our present hard
times, which are the natural outgrowth
of the financial system of today, or III
more general terms, are the elimination
of the social system OF individual com
petition ARE providing the usual numb Der
of remedies. Few, if any, of the
schemes proposed are new or original.
The underlying principles of the many
plans for financial reform that are being
urged upon the public, are modified forms
of theories that have been frequently
discussed if not tested in the past. Often
a change of label, or new style OF
wrapper will, for the moment, cause US
to imagine that an original remedy is at
last before the public, but a closer ex-
animation, and a more careful analysis
will invariably show that inside is the
same old medicine. In whatever shape
the bottle may be made, whatever the
color of the wrapper, no matter concern
ing the strength and number of the tes-
timonials or the wording in the warrants
of cure, the remedy enclosed is the in
fiation of currency to meet the demands
of trade. [ honestly believe the old
remedy is the best ever devised and
that civilization has never yet taken it
at proper time and in appropriate doses
without affording relief, and think if the
remedy was properly administered it
would go far toward effecting a cure.
In this article my object is to briefly
compare two remedies that differ some
what in the labels, wrappers, testimo-
mails, doses to be taken, ETC., but both
contain the old medicine. / refer to the
sub treasury scheme and the financial
reform prepared by our fellow-towns
man R. M. Widney, which is out
lined in a pamphlet entitled, A Ma
tional Currency. l take it for
granted that my reader is already famil-
lar with the details of the former
scheme, and l will endeavor to briefly
outline the leading points contained in
the latter. Stripped of the necessary
legal verbiage, the leading principles OF
the proposed legislative enactment may
be stated as follows: A new bureau
shall be established in the treasury de-
partment of the government, the chief
officer of which shall be called the comp
troller of finance, to be appointed by the
president for term of ten years. This
officer shall direct the issue of circu-
lating medium in the name of the
United States to the amount of twenty
dollars per capita, regardless of the
amount of gold and silver already in
circulation. In order to place this me-
dunn of exchange in public use, any
number of persons, not less than five,
may form a banking association. This
association may select to deposit in the
hands of the comptroller of finance.
state, county, OF city bonds, accom-
panied by proof that the said bonds do
not exceed five per cent. of the value OF
the property contained in said state,
city, or county; or may forward the
title deeds to real estate, accompanied
by evidence. TO show the average
assessed value Qor taxation) of the said
real estate for the preceding five years.
When the comptroller is satisfied the
bonds do not exceed the limit men
toned, or when the security advanced
is real estate, is convinced that the
assessed value is not more than one
half of the selling value, he shall issue
to the banking association warrant on
the United States treasury for circulat-
ing notes to the par value of the bonds
or the assessed average of the real es-
tate.
The amount given to any one bank
shall not exceed one million dollars and
shall not be less than twenty-five thou
sand dollars, and each bank must have
a capital of at least fifty thousand dol
lars. AS to the important point, how
much interest may these banks charge
for the use of money, quote as follows
Sectional. That each association may
charge such rates of interest as may be
allowed by local laws where the associa-
tion is situated"
The above brief statements may en-
able the reader to grasp the principles
underlying the financial reform proposed
+ by Judge Widney in his pamphlet. Ii
/ have not stated particulars, have en-
deavored to give a just synopsis OF the
leading points, and the above is sufi-
cient to comment upon. l find no fault
with the currency suggested, but object
to the methods employed to give it cir
culation. The opponents of banks OF
issue claim that the system is poison
that checks the circulation OF the life
giving fluid Currency in the arteries OF
commerce, paralyzes the nerves of busi-
ness and acts perniciously on the whole
body polite. Apparently Judge
Widney recognizes the existence of the
poison and is willing to dilute it, dis
guise the taste and render it palatable
to the public. 1t is like an effort to con-
vince the inebriate that brandy is de-
stroying his health and endangering
his life, and insists ON Civ
ing up his brandy, taking to
beer III its place. The later liquid
is much more wholesome than the
former, it can be taken in much larger
doses, it possesses tonic properties,
while the stronger liquor is only a stim-
ulant, and by only using the milder
fluid he could live longer and be much
more temperate and healthy. But the
alcohol is present in both, and the sub
stitution Of the milder for the stronger
will not effect cure. L admit the use
of beer is less deleterious than the use
of brandy, and freely admit that the
financial plan under consideration is