Daily capital journal. (Salem, Or.) 1896-1899, 1898-01-19
Money Locked Up'
low It Is Lying Idle in the Banks.
An Eastern Oregon Paper on the State
Treasury Farce.

people neither "sOund money" no
an honest public administration anC
we can prove 10.
Our wonderful gold standard monel
system my be very wonderful wheT
it is fully organized and established
which IL is not yet. But in the mean
time it is wonderful unsatisfactory
just look at II for moment. The
national banks are required TO keeI
hundreds Of millions locked up &C
make good their circulation. The
word national bank isa miHnomer
They better be called national mon
opOly, because IL they we're truly ma.
tiOnal banks Issuing "A truly national
currency, IL would need nogOld locked
! up 70 make it good,
Next these banks must keep locked
up vast SUMS TO make good, or seem.
! ingly good the deposits of their
customers. Yet this is all fallacy
as is shown by the fact that the ag-
gregate deposits in all kinds of banks
amount 70 more than four times all
the money in the country. When
national banks were popping and
tOttering all over the northwest, It
was a purely, private banking house
at Salem that held up scores Of totter.
/ ing national monOpolies Even the
First National at Portland was hard
put TO 10 to ship In enough Of money
from eastern cities to tide IL over.
The whole present financial system
and banking system seems to be con-
structed TO produce insecurity, IN
certainty and To lCck up the money
and keep il from circulating. Nc
Kinley ard Gage were hard hit by
senator WOlcOtt when he said their
views on finance we're absolutely at
variance with each other. One talks
bimetallsm, the other talks GOLD
standard. Yet with a reserve Of $780,
600, 900 gold we are floating $500, ,0O0,-
900 silver currency which Gage says
is not money but tokens worth ACC on
the dollar until il is redeemed In gold.
II we are TO have the gold standard
With It's full beneticent influence do
leo us have IL. Let Mckinley and
Gage harmOnize their views and let
the Republican party have the cour-
age Of its convictions or let us have
free coinage of both metals and let
the devil take the hindmOst.
The worst farce of all is TIE manage
ment OF our state treasury, where the
people are compelled To pay per cent
interest on their own taxes. Not sat
istied with locking up the money Of
the people, the collection of which the
treasurer was in great haste to com
pell, and which the courts decided |
must be paid at once. then the same
court declares, the secretary Of state |
must issue interest bearing warrants, |
but the treasurer shall not cash them. |
Thus the money is locked up, but the |
people pay interest on taxes already |
paid.
The Dalles Times -Mountaineer has |
the following article on the Oregon |
treasury:
State Treasurer Metschan has made !
his semi-annual report, showing the |
balance in the state treasury, and re-
ports the balance Of uneXpended funds |
TO be 1867, 1927. This neat little |
sum has been collected Off the taxpay-
ers OF Oregon, and locked up Ia the
hands OF the state treasurer (presum-
ably at least) while the state is paying
interest on very nearly that amount Of I
outstanding warrants for current eX-
Denses.
This is one Of the legacles left by
lhe was-tO-have- been legislature Of
1897. Had the legislature organized
.he money collected for state taxes
would have been returned through
he channels OF trade 20 the people,
where IL would today be performing
Is ordinary functions, and the inter
st charges would be stopped. That
,he money Is not actually locked up
n the vaults OF the state treasurer,
# course everybody understands, for
Mr.. Metschan Is not the kind Of a
nan TO allow money To lay around
die, but so far as the taxpayers are
oncerned 1t is inactive. since they
viii have to pay accumulated interest
n time.
Horever had legislature been
lected in 1896 with some other OBJ.
ect In view than the election of a
United States senator, this would not
ave been. AT least the general ap-
bill woulG have been
'assed, and what is left oyer Of the
tate taxes would have been squan-.
erred In the ordinary manner, so Mr..
letSchan would not haye had such
llge cash balance To have reported
nd we would not now be paying in
crest on a half million dollars state
ebt. Oregonians may some day
sarn that the legislature has other
unctions to perform than to elect
enatorS.