The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-11-05
LET WELL ENOUGH ALONE.

S'~A 80 " ~
to be untimely and mischievous. The
currency is or a gold basis and will
remain SO. There appears to be aI
ample supply for the requirements Of
business, though it is true that at the
beginning of the crop movement there
was for a brief time a tight money
market, partly because of the large
amount Of money lying idle in the
treasury. AS to making the currency
more elastic there seems to be no
urgent necessity for legislation to &C.
complish this.
Perhaps no one has given this
J subject more careful and intelligent
Dawes, former comptroller Of the cur.
rency, who in an address a few days
ago before the Illinois State Bankers
association unqualiiodly opposed the
idea Of allowing the national banks
10 issue asset currency, also asserting
that 1t present there Is plenty Of
Nht3liNiLy w NhS why "l'
Dawes declared that it was out of the
question to discuss asset currency as
a benefit to the government in run
ming it's financial plans. The govern
ment credit was protected in the gold
act OF last March. 1t Is the business
interests of the country that should
be considered in any change and not
the government. He seriously ques-
toned the idea under the asset cur
rency scheme Of allowing banks to is
sue currency and then have them tax.
ed 5 per cent and pay | per cent on
uncovered circulation. He asked
why such risks be limited and said:
IF there was really danger of a loss
to the government In such a plan,
why was not the government affected
in the same manner? 1t Is putting a
risk on the depositors which they
should not be asked to carry. With
such a system all small banks would
issue such notes and the great banks
would not make on them because Of
the small amount OF profit. The west
ern banks would use such notes and
it would be on them that the burden
would fall"
MIR. Dawes said that under the ma
tional bank system there Is plenty Of
elasticity and he did not think there
Is need Of legislation in regard to
this. I'VE have sufficient elasticity In
the draft and note system Of our II
try to do all the business we do" he
said, adding that we need asset cur
rency only in times of a crisis and
that there Is danger In this system of
giving too much elasticity to cur
rency and thus destroy the currency
itself. He referred to the great ad.
vances made in this country in the
national bank system. In the last
ten years our system has increased
SO per cent over that of England. For
this reason we do not need q CEN
tralized bank system. The period of
all crisis has been short and 1t was
found after such a period, extending
only for a few months, there was
more money than was needed to, sup
ply the country. The depositor, said
Mr.. Dawes, must have ample protec-
ton in all financial changes and the
bankers are more Interested in the
care of such customers than they are
in questionable profits that might oc-
cur.
We believe that in this matter the
%judicious policy is to let well enough
alone. The business of the country is
being transacted under prevailing cur
rency conditions without hindrance.
No legitimate enterprise finds any diff.
ficulty In obtaining what money it
needs. Any tinkering with the cur
rency at this time, 1t seems to us,
is more likely to disturb than to i'm.
prove financial conditions and is
therefore to be deprecated. We ere
inclined to believe that this will be
found the predominant feeling in con.
gress.