The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-03-16
HOUSTON, TmunsDAY. MAncu 10.
TEN PAGES TODAY.
THE .souNp MONEY WE ARE TO
l.I.I

GET.
The sound money people so-called,
declare that the Tifty-sixth congress viii
be so composed that the bill fayorably
reported by the banking and currency
committee or the last house. can be and
will be enacted. and By The summer Of
1900. at the latest, be the law OF the land.
The sound money committee OF the
Reform Club OF New York have made a
report indorsing the bill In question. which
embraces the administration plan, and ave
continually acacing out pamphlets, or
sound money tracts. in the attempt to
educate public sentiment up 10 the Re
farm Clubs views on the currency. The
Post has moro than once shown upon
what sandy foundation This new financial
edltice is 10 be erected. bul one feature Of
the report mentioned which has just been
sent TO The Post. deserves further and
special notice
The requirement heretofore and still
existing. that United States bonds should
be deposited with the treasury to secure
National bank ctrcalation, is tho one
feature thar has given these notes Of pri.
vate corporations their strength and
value. Il Is ibis Requirement. thai has Kept
the National bank notes from becoming
wild cat currency. II Is against this
feature that the new bill Is especially
directed. The sound money commit
tees" report argues against the bond Ie-
quirement in the following terms;
This requirement, as shown Ia cur Ma
loual banking syE.rm tCday, Tesrlts In 4
rkid and ineiasdc currency Shirh utterly
falls 10 meet the nec5I OF halacss T. m TX M
the issue Of tanA notes least ptnh fable (aAl
therefore least proasbieI wherever rates OF
interest are hlghEst, and the dc mani 10,
currency most nrgeat Il l5eks no capitsi.
ln rural communities, especially IL nsces n.
tates senninS ficm h1ine. Ia order to bu
bonds, lfTge amountf Of Money tAat would
otherHiss be loaned % local borrowers. rs
thus restricting the means with which to make
loeal loans. Il raises the rate OF Int rest Shich
focal borrowers mugt pay.
This reasoning Is misleading IN that II
ignores the fact that for the money which
is sent from home TO buy bonds other
money is issued by the bank 10 the ex-
tent OF 30 per cen: Of the bands.
SO that the restriction OF local loans
from this cause is very limited at
the most. Bat the real question just
here Is whether the country can al
ford TO swap even an Inelastc cur
rency that is based upon government
bonds and. therefore. absolutely safe, al
though II may not nay comparatively
limited class-tho National bankers--a big
profit, for an elastic" currency that IL
based only on the banks credit or assets
which may be OF M value?
Shall we, in other words. for the accom-
mediation and profit OF the National banks
turn over to them the issue of the entir,
volume OF paper currency Of the countr,
on a purely wild cat" basis, or retail
in the interest OF the public at large
currency based upon the faith and re-
sources OF the government. although TO
quite SO profitable for the bankers?
Tsis is the great question, in nut
shell. that is involved In this administia
tion ami sound money plan Of curreuc,
reform.
IN the meantime these sound money
champions continue TO oppose the sre
coinage OF silver which would possess
large intrinsic value, be legal tende
and be based on the government credit
while advocating paper money thu
would have none OF these qualities, Thl
Il consistency for you! We can bcEin /
get an accurate conception OF what soun
money means in republican eyes by
study Of this bill II simply means "wll
cat National bank notes mo better tina
any other notes Of private corporations /
ether lines OF haalnoss.