Freeland tribune. (Freeland, Pa.) 1888-1921, 1900-01-29
AN ELASTIC CURRENCY.
THE PLAN SUBMITTED TO CONGRESS-
BY HON. JOSEPH C. SIsLEY.


4 Proposition Tint Would Enable
Money TO lie secured Independent
of Bankers in Times of Financial
Distrust.
The currency bill introduced in con-
gress by Hon. Joseph c. Sibley de-
serves the careful consideration of our
national lawmakers. and all who are
interested in stability of prices and pre-
vention of financial panics, injurious
ly affecting, as they do, all legitimate
interests. The bill provides that any
holder of government bonds may de-
posit them with the United. States
treasurer, and receive therefor 80 per
cent of their face value in treasury
notes of the same debt paying power
IS now granted to the notes issued by
national banks. During the period of
deposit the interest on the bonds shall
cease, or be covered into the United
States treasury. Upon the surrender
of the certificate of deposit, together
with payment of treasury notes equal
in amount to the sum advanced, the
bonds may again be converted to the
use of their lawful owner The merits
of such measure briefly are as fol-
lows:
1T AFFORDS ELASTICITY.
1t provides for a currency that would
automatically expand and contract ac-
cording to the demands of business.
Within the last few weeks money has
loaned in New York as high as 1856 per
cent. During the panic of 1893 money
could not be borrowed with govern
ment bonds as security. Under the pro-
visions of the bill introduced by Mr..
Sibley in time of financial distress the
currency could be expanded, il neces-
sary, more than $400,000,000. The
reason for naming 80 per cent OF the
face value of the bonds is that the
government shall not be put regularly
in the business Of loaning money, but
merely to lend it's power to prevent ex-
cessive rates of interest or financial
disaster. When money is worth more
in the open market than the interest
on so per cent of the face value of the
bonds, money would flow out into cir
culation. When the interest upon 80
per cent was worth less than the in
terest upon the face of the bonds, the
currency would flow back into the
treasury and the bonds be withdrawn,
Mr.. Sibley's statement being that both
scarcity of money and a redundancy
of money may possess danger, the scar
city hindering business and paralyzing
industries, while too redundant cur
rency might provoke speculation and
overtrading, which would in the end
inevitably invite disaster. Mr.. Sibley
states that he is not welded to any
| fixed percentage to be advanced by the
treasury, but any percentage from so
up to 80 would be satisfactory as the
wisdom of the house may determine
| This measure has received a great deal
| of attention among lawmakers and
| bankers, one and all agreeing that it
| has features which entitle it to careful
| consideration. No one has yet been
| able to offer a valid objection, but
these perhaps may come when the bill
is analyzed by the committee on bank
| ing and currency
PITY THE POOR BANKS.
| The only objection that has yet been
made is to the effect that the banks are
in business to loan money and derive
| their profits therefrom, and should not
be subjected to competition through
loans made by the government In
reply to this objection Mr. Sibley
urges that under the new currency bill
which has recently passed the house
bankers are enabled to issue money up
to the full face value Of their bonds, at
the same time receiving interest upon
the bonds so deposited, and to give to
the holder of bonds the privilege of
losing his interest, and drawing go, 75
or 80 per cent of the face value of his
bonds does not subject the bank to
any unfair competition, and that the
bankers themselves, under stress of
financial circumstances, might be great
beneficiaries, which would enable them
to convert their securities into cash
during the prevalence of panic, which
would make run upon their resources.
Mr.. Sibley urges that under the pro-
visions of a law such as this there
could not again occur a great financial
revulsion, and that the advantages
would not be centered in New York or
in any great city, but would benefit
locally, throughout the entire United
States, the community where there
might be scarcity of money which
would force rates abnormally high and
| threaten to create panic. Secretary
| Gage declares that the worst character
istic of our financial system is its
rigidity, and Mr.. Sibley's plan certainly
would overcome this to considerable
extent at least
Senator Hoar's resolutions are CIV
ing the imperialists more worry than
they can stand, and with one accord
they are trying to find relief by declar-
ing they are In favor of them but are
opposed to their enforcement-San
Francisco Call.
Now 1t is said that Mark Hanna will
be chairman of the Republican nation
al committee after all. The admins
tration has evidently recovered from
its fear that the presence of the high
brahmin of trusts on the committee
would be angerous.-Boston Traveller.
Mckinley doesn't blame Gage for