Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1898-12-28
Currency Reform.

Is IN session IN New HaVen. Conn, and
tomorrow the committee on cur
rency, consisting of F. NJ. Tay-
lor. of the University of M~ichigan;
F. W. Taussig, of Harvard university;
j. w. jerks, of Cornell university, and
David kinley, of the Illinois university.
| will make its report.
1t will be noticed that among the
members of the committee there is not
a practical business man. and for that
reason the report will be read with con-
siderable interest. 1t is an undeniable
fact that the American people are given
to looking upon reports and suggestions
coming from theorists with considera-
Bile skepticism, and any report which
may be made by the gentlemen compos-
ing the committee an currency of the
American Economic Association is very
apt to be received with anything but
enthusiasm. 1t is naturally supposed
that the committee will endeavor to
recommend legislation which will COR
rect all the evils of the present none
tary system of the country, and the
question arises, What are the evils?
In the past few years much has been
heard concerning the inelasticity of the
currency now in use; hat there is not
money enough in circulation to meet
the demands of the business actually
transacted. On the other hand it is
known that the eastern savings banks
are reducing interest rates because
there is no way to employ the money
deposited in a profitable n Judg-
ing from that condition, it would APP
pear that elasticity is not so much
needed as as some method of getting
deposits into circulation. If the com
mittee of theorists can devise some
scheme for keeping the money already
in the country on the move, they will
accomplish something which practical
business men and financiers have not
been able to do. 1t is the general ex-
p%erience of the American people that
there is no trouble to get money, if the
persons wanting it have something to
exchange for it-either products which
are marketable or good security.
Another matter which will probably
be taken up by the committee is that
of the standard. There is no fault to be
found with the present standard. Ev-
cry dollar of the circulating medium is
worth 100 cents, whether it is paper,
silver or gold. There is no trouble with
the standard. 1t is stable enough and
it has been maintained without any
trouble. What is needed is some kind
Of an arrangement whereby the bimetal
standard can be restored. The attitude
Of the great nations today on the
money question is such that no one of
them can afford to attempt to restore
silver to its former position as a none
metal. and until that attitude is chang
ed gold must remain the sole standard
of value. While it is true that the
worlds supply of the yellow stuff has
been very largely increased the past
five years, and the indications are that
within the mex decade gold will be-
come almost as plentiful as silver, it is
equally as true that the longed-for
elasticity of the currency would be ac-
complished in a very short time by re-
storing silver to it's former value at
some stable ratio-say 16 to l, for argu-
ment's sake. If the learned college pro-
fessors who compose the currency COM
mittee have evolved a feasible plan for
such a restoration of silver, they will
be taken out of the ranks of theorists
and given positions as bank presidents
at larger salaries than they now draw.
No doubt there are other evils in re-
lation to currency reform which the
committee will discuss in its report,
but after all the entrusting of the re-
form of the currency to a number Of
theoretical financiers is pretty much
the same as taking a fine watch to a
blacksmith for repairs; and this is said
without any disrespect for the learned
gentlemen who ompo the currency
committee of the American Economic
Association.