Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1897-01-09
PREPARE 4 CURRENCY BILL
The House Committee on Banking
Will Go to Work.
Reed Suggests Action. Walker Talks
or the Remedies He Advocates
and His Plan for Cor.
recting Errors.

Sthi ttn, JAN.
Walker OF Massachusetts,. chairman Of
the house committee on banking and
currency, will make a determined effort
to perfect some legislation on the cur
gency during the present session, not 50
much with a hope that 1t will become a
law as with the intent OF having 1t
ready for action by the house during
the extra session, while the tariff bill Is
In the senate. January 8 Mr.. Walkers
committee will commence a series OF
meetings and begin the preparation OF
a bill. h action will be taken at the
suggestion OF Speaker Reed.
What are he prospects OF legisla-
ton in this congress and the next to
correct the alleged existing evils In the
banking and currency systems?" was
asked.
1T will depend upon the leaders OF
the dominant party. The banking and
currency committee during my eight
years service on 1t has practically had
the opposition of the leaders of the
dominant party under both democratic
and republican administrations OF the
house. Beginning with the days OF
Sam Randall. the legislation OF the
tOdst btAG tth hhAto htpAt aAfo
more in the hands Of a few men. While
he form is preserved of appointing
ffty-eight committees who prepare Leg
lslation, and who work laboriousiy.
very few committees get any OF their
measures before the house. Unless h
few leaders are earnestly In favor OF
legislation II cannot be had. A ommon
remark in the house Is hat a large pro-
portion Of the house might as well go
home as to be here"
What are the most vital defects in
the governments present currency sys-
tenn"
THE most vital defect is that there Is
q government system. Banking Is Of
such a nature that q government. as
such. can take no part In IL other than.
that OF supervision unless the govern
ment IL a banker. with all the service to
the public and risks OF a banker. The
fact Is that the bankers of this country
nov have to carry every dollar OF h
existing currency, as compared with
banks in England, France and GerN
many, without a cents profit TO the
bankers, while in other countries where
the currency used by the people is put,
In circulation by the bank. the banker
that issue IL make a profit upon IL OF
whatever their rate Of interest on loans
and discounts is. II every dollar OF ex-
lsting currency was put in circulation
by the banks OF this country the banks
would receive about $50, 000. 600 income
on It. That would mean that they could
reduce the rates of interest they charge
by nearly one-third and pay their stock
holders the same rates as now"
"Wha would you recommend 10 rem
edy these defects?"
'The people nave become so accustomed
TO the currency being issued by the gem
eral government. and the constitution OF
many states forbidding state banks TO is
sue II, 1t Is not practicable to depart from
that custom. But as IL is impossible for
any agency other than banks TO put cur
rency in circulation among the people and
make its current redemption safe and
practically free from expense. congress
shiu.d put the current redemption OF our
greenbacks upon the banks pro rata to
their capital and compensate the banks
for this service. which, by the way. would
really cost nothing as compared with pres
ent conditions. by allowing the banks to
Issue an amount Of currency equal TO the
sum OF greenbacks OF which they assume
the current redemption. This would make
a profit TO the banks on the total cur
rency issued OF more than three times,
taking the country over. what they can
make by issuing II with the use OF bonds,
as required under the present law"
But how would you make the currency
as safe as our present currency. which is
guaranteed by bonds?"
The very small tar of 2 mills on a dol
lar annually. retaining the same provision
"a nnuu-that thA a1aAsa ~ shA AL. L.
case Of insolvency should be used first to
pay Its currency notes-would make a
safety fund I'm the United States treasury
OF an amount many times more than the,
losses could be, as shown by thirty years
experience, ! would have the government
guarantee the payment OF every dollar Of
currency issued. which would be equlva-
lent to its being secured by bonds"
What vital changes would you recon-
mend In the laws regulating the national
banking system"
First, / would release the banks from
an obligation to secure their currency by
the use Of United States bonds. Tina re-
Quires the bank to put in the hands of the
government for the safety OF their cur,
rency Ill per cent of their capital to each
dollar OF currency issued when they begin
business. What / suggest In that the gov
eminent take 100 per cent of their assets
to pay each 100 per cent OF their currency
notes when thdey go out OF business.
With the 2 mills tax for a safety fund. the
latter Is as secure az the former. Further.
more, the use Of bonds violates every prin-'
ciple Of banking as it Is understood I'm ev-
cry other country than this. 1t was adopt
ed as a forced loan upon the banks. Had
II been abandoned Immediately after the
civil war. and had the government aban-
doned maintaining a gold reserve to re-
deem our currency notes. putting II upon
the banks. where II belongs and where IL
Is In every other country, we never would
have been vexed by the greenback ques-
ton. nor the free coinage of silver ques-
ton. n the like questions, which will
come TO vex the country until the govern
ment goes out of che banking business"
ShOt HE WIFI