Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1899-05-18
currency Reform.

ANVIorus
Inc administration press is constantly
urging currency reform"
what reforms does this administration
propose in relation to the currency?
Their scheme is to retire all notes il.
sued by the United States, and in lieu
thereof issue bank notes only.
They claim that the government ought
to 90 out OF the "banking business" and
that private corporations should issue the
currency of our country.
SO far no good reason has been adj
vanccd for this course. The issuing Of
bank notes by banks of issue is the old
state bank system, known as the "wi!d-
cat banking SYSTEM" extensively and
solely used before the war between the
states.
IT private corporations, or semi-puk lie
ones, Isl tie our currency, then the value
Of tie currency so issued must depend
on the value OF the assets of the corpora
tons.
The issue Of notes by private corpora
tions cannot command the respect and
confidence OF those that know nothing OF
the financial standing of the corporation
issuing them. The note holder would
not be protected. he would lose, Just as
the depositor does, when Il bank breaks
II the notes OF banks are to be issued
to corporations under general law, the
notes so issued will not be money. They
cannot I've q legal tender for debts and
nes, unless made SO by an act OF con.
gress, and il made IL legal tender under
any conditions. then the United States
would be in the banking bushes the
same as they now are. and as extensive
~, unless the volume Of paper currency
is to he diminished.
If the notes issued are to be based on
securities held, and these securities are
to be bonds, and in this way the notes
are to be made good by the government,
in case the bank should break, then we
have the same system that we now have,
the only difference being that the banks
would issue all the paper currency in.
stead OF part it. But then the gov.
eminent would be in the banking bust
ness as it now is. it would ne running a
"hock shop" a three-ball game, where
bankers can put bonds in pawn and get
a given amount in currency.
This brings us to the consideration Of
the primary question, "What is banking
business?" II it is meant that it is a
place where you Can deposit valuables,
then the government would be in the
banking business, because it would re-
ceive Oh deposit bonds offered and &C.
cepted as security for bankers.
Ifit is meant that it is an institution
where you can hypothecate securities
and secure currency at a given rate per
cent per annum, the government would
be in the banking business, if it gave cur
rency for bonds hypothecated.
If it is meant that 1t is an institution
where money is coined or issued, then SO
long as our constitution exists, our gov
eminent cannot go out Of the banking
business.
But il it is meant that banking insti-
tuition is a place o. institution where you
can deposit moneys and draw check on
the bank for part or all OF the amount
deposited, then the government is not
now in that business, and the reform
movement is not needed to crush it. The
scheme these currency plunderers nave
in mind is we'll understood. But their
professions and their proposed line OF
practice are at varance.-Daily News
ipsburg, n. j.