The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1897-07-30
TO REVISE THE CURRENCY

The president in his inaugural address
suggested the creation of a commission
| to devise a plan for revising the money
system of the country. The bankers
who met in convention at Indianapolis
Endorsed the presidents suggestion, and
message was sent to congress the last
night of the session recommending the
passage of law authorizing the ap-
pointment of a commission, but con-
gress adjourned without any action hav-
| senate.
1t is probable that the idea of creating
a commission is given up, though the
house passed the Stone bill and sent it
to the senate.
There has all the, time been a plan
alternative to that of a commission,
which is that the treasury department
shall prepare bill and have it ready for
congress on the first Monday of Decem-
Der next. The bill is in process of prep
aration by the secretary of the treas
ury, assisted by James H. Eckels, who
is comptroller of the currency under ap-
pointment by Mr.. Cleveland.
| 1t has already been indicated that the
| bill will provide for the gradual retire
ment of the greenbacks and treasury
notes and the substitution therefor of
| national bank notes. Whether such re-
| tirement will be accomplished through
| the issue and sale of interest be airing
bonds or through the use of the surplus
revenue as it shall be received, is not
definitely stated. 1t is proclaimed that
the bill will be of character that will
esta blish sound and elastic currency"
| Those acquainted with the views of
Messrs. Gage and Eckels will understand
| that what is meant by a sound currency
is in volume so small that it can be
redeemed with gold.
Elasticity of currency means that
which is expansible and contractible, Of
fering greater volume at some times
than at others, the idea being such in
crease and reduction as the variable
needs of trade demand The theory is
plausible, but the important question
is, Who shall decide when there shall
be expansion or contraction? An elastic
quacy of volume
| 1t is true that there is a greater de-
| mand for money in some seasons of the
year than in others, but there is not as
n, f1I1ot11o tiop in the n am some
people suppose. When facilities for
| transportation were not as great as they
now are crops were moved less evenly,
! and merchants bought six months
stocks at a time, but now they stock up
as they need, and payments are made
| more frequently and in less sums. If
! there is wisdom in providing for alter
nate expansion and contraction we
repeat the question, Who shall say when
| the money shall be let out and when it
shall be drawn in? And who shall de-
| eide what volume the business of the
| country requires?
If the power to supply currency is
lodged with the banks the volume they
shall issue and keep in circulation will
not be prescribed by law. If they are
required to redeem with gold coin they
alone must judge how much they can
safely put out, and therefore the regula-
ton of the volume will have, to be left
| to them.
Banks have practically become great
trust they hold conventions and operate
under the direction of a president and
an executive committee. 1t is hardly to
be supposed that they will regard the
requirements of commerce as much as
their own interests. Selfishness is COM
mon to men, and bankers are not more
exempt from its influence than other
people. 1t is the prerogative and duty of
government to supply to the people a
sufficient volume of sound money and
it is dangerous to transfer that preroga-
tive to corporations of individuals.
1t is to be hoped that the con templated
bill will be prepared and promulgated
without unnecessary delay, that the peo-
pie may have time to consider it before
congress convenes. 1t should not be
kept secret till sent to congress and
then rushed through under the thumb
screws of party and of trusts The mon
ey question is the greatest before the
country and needs TO be thoroughly and
periodically considered.
The commission scheme was a coward
ly Sinking of responsibility; it was a
confession that the administra ton has
no views on the money question which
it dared to- father 1t may be said to be
a plan to have opinions manufactured
for the president and his learned and ex-
perienced banker secretary. What the
country expects is that the administra-
ton shall study the interests of the
masses rather than those of money
lenders. The people do not elect men to
office who rely upon others to do their
work for them. They do not want to
be put to double expense.
CINCHED AGAIN
| Cot loo 1a = orif hi Il