Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1898-01-26


flags and in all ports. Anything
short of this is an embargo on
American commerce.
1t seems to be conceded by bust
ness men and statesmen as well,
that our national currency needs
reformation. The various plans
devised and formulated, and rec
commended all tend in the same di-
rection with greater or less abrupt
ness. 1t is urged that the country
will not consent to the retirement
of the greenbacks and the issuance
of any form of money in lieu there
of. This may be true, but If true
DIT proves the existence of an ill
advised prejudice. Concede the ne
cessty of maintaining the parity
of each form of currency with gold
and the necessity of some modifi-
cation of the present system is ap-
parent. That the gold standard
should be made was the verdict Of
1895 by a million majority. The
fact Of notice that the case will be
retired in 1900 will not justify a de-
lay in placing the country on a
safe financial basis. To do this de-
mands the best and most stable
form of paper currency. No one
presumes to recommend a contrac-
ton of the currency. No one would
limit us to the use of gold as a me-
dunn of exchange. All that Is
claimed, and all that inheres in the
verdict of 1896, is that the value of
each dollar of United States cur
rency, whether of coin or paper.
shall be the value of 25.S grains Of
standard coin.
In some way our currency must
be made elastic. Recent expert
ence ought to evidence the neces-
sity of authority somewhere for an
emergency issue. 1t has been dem
onstrated in the last five years
that very little scare engenders
a disposition on the part of the
people to hoard. This proved to be
as contagious as the disease germs
of Asia, and as ruinous to trade
and commerce. The only way that
the government under existing
laws, can now increase it's circula-
ton is by borrowing upon in
creased issue of bonds, which re-
suits in anything but the removal
of the conditions rendering the ex-
pedient necessary. The govern
ment assumes to do a banking
bushes supon credit rather than
assets. and her board of directors
are subject to sudden and capri
c.ous change, and are elected, not
always because of peculiar fitness
for this particular branch of bust
ness, but with various tendencies
and predictions and pledged to
represent the sentiments of widely
diversified constituents, wise or
otherwise. When such a board
confrontS a condition Of imminent
peril, they may we'll be expected to
debate each proposed measure Of
relief until the country goes to
ruin, or is saved by the patriotism
and self sacrifice of those whose
interests are more vitality at
stake. Somewhere. with some
power, there must be lodged au-
thority to relieve against sudden
mania for boarding. An authority
of this kind in recent years might
have averted the disaster. 1t may
not be so important where this au-
thority is lodged as that it be
lodged where it can be quietly ex-
ercised, as occasion demands,
without extra session of congress
or special legislative enactment.
The mere publication of it's exer-
cises would, in many instances,
prehension which rendered the ex-
pedient necessary. The most ma
tural and reasonable repository
would be those institutions whose
self-preservation would lead to the
safe, conservative and judicious
exercise thereof.
Should either one Of the several
plans for currency reform now pro-
posed be adopted, DIT would go far
towards rendering a panic, such as
we have recently seen, at least a
remote possibility. The merest
furry. the gathering clouds, ever
discernable, would be protected
against, and the country might
never know that threatened dam
ger had been warded off, for it
should be borne in mind that the
public has its attention drawn to
these matters only when the
storm breaks.
1t has been urged that to in
crease the powers of national
banks would result in a contrac-
ton Of the currency to the prejudice
of the people. Those who fear this
result lose sight of the law of sup
ply and demand, and the equally
potent influence of competition.
1t is safe to suppose the banks
would increase their issue as long
as it proved profitable so to do,
and 1t would prove profitable as
long as there was demand for 1T.
Capital would be attracted to
banking channels so long as it
could be made to yield a moderate
dividend. The interest derived by
the bank upon the deposit of bonds
would assist and very soon result
in a material reduction of rates of
interest to those who might require
accommodation; and trade, manu-
facture and every industry would
be stimulated thereby. We can
safely allow experience to be our
teacher in this as well as other
matters. Amid the currency fam
inc of 1898 the government was
powerless to relieve, but the ma
tional banks purchased bonds at
eXorbitant premiums and in
creased the circulation $4,000, 900.
Now that threatened reputation
is passed, and the people have re-
turned their hoard.ngs to channels
of trade, the banks are literally
gorged with money, notwithstand-
ing an increase Of business, as
shown by clearing house reports,
of more than 60 per cent; and
these same banks are now retiring
their circulation at the rate Of
100000 per month, the govern
ment tax rendering ii Improbable
to maintain their issue in idleness.
These other facts, known to all,
but overlooked by many, must be
ever kept prominent IL one would
wisely solve the problem. Money is
not consumed by its use. There is
a limit beyond which money cam
not be absorbed and idle money
profits no one. 1t is the running
stream and not the Stagnant pool
that turns our wheels and floats
our commerce.