The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-11-12

citizen because they are diff
iicult to understand and be-
cause he has very imperfect concep-
ton of their Importance as live factors
in the daily equation of his prosperity
or business misfortune. Yet with the
great tariff issue, out of the way, there
is bound to come forward in it's place
for threshing out before the American
people the question, hardly secondary
in Importance, of currency reform.
What is the matter with our cur
rency?" the thoughtless may ask. eve
thought that was all settled when Nc
Kinley was elected over Bryan and the
gold standard riveted." Quite the con-
trary. Only the A e C Of it was set
tied then. There remains for adjust
ment the more intricate matter of put
ting our currency on a systematic.
scientific basis. so that when business
grows the money supply will grow with
it and contract when business con-
tracts, automatically, without fuss or
feathers, and in manner to do away
with speculative panics 50 far as they
can be done away with at all.
BY reading the speech of the comp
troller of the currency, delivered before
the American Bankers association at
New Orleans yesterday and reported
elsewhere, YOU will get some idea of
what is the matter with our currency
at present. 1t is like the ten year old
boy trying to crowd himself into pair
of five year old pants. 1t doesn't fit.
For one thing, the government is re-
quired by law to hoard great sums of
money in the treasury vaults at WASH
ington that ought TO be out among
the people in active circulation. Money
lying idle does no good. 1t is the nim-
BILE dollar passing rapidly from hand to
hand in purchase of goods and payment
of debts that counts for business pros
perty The government must be out of
the boarding business. 1t must use the
peoples dollars so as to benefit and not
cripple the peoples business activities.
But, regardless of this phase of the
financial problem, the one great defect
in our currency system today IS the
fact that it has to be continually pap
fed and Wet-nursed when it should be
strong enough to go it alone. A cur
rency system should of its own motion
respond to business needs, providing
greater or less circulation as the volume
of cash-payment business expands OF
contracts. If big crop grows out
West and the farmers want real money
fn, lai In, Of
promissory notes, it should not be
necessary to cripple business activities
in the East and South in order that
enough bank notes may be rushed to
the West 10 move the Vests croI
yield. Generally when the West wants
ought to be enough for both and there
can be enough without injuriously in
fating the currency or depreciatng II
one particle. The remedy is simply tC
provide for emergency issues of what
is called asset currency, that is, bank
notes on other security than govern.
ment bonds, but SO regulated and taxed
that it will not be profitable to issue
them when there is not rush of busI-
ness and so safcguarded that If bank
should go to pieces with asset cur
rency outstanding its note -holder would
suffer no loss.
There is nothing new or risky about
asset currency. 1t Is in use in some
of the best governed countries in the
world and wherever it is used it works
well. Scotland has ii. Canada has it
Substantially it is the basis of banking
in nearly every important country il
the civilized world except the United
States, which clings to Il clumsy ole
system patched up from time to time
by statesmen who knew better, bu
who were afraid to so before the peopl,
advocating scientific currency reform
lest they might be charged with selling
out 10 the banks.
Twentieth century business must bS
done by twentieth century methods.
The managers of the Washington, ID
C., theatres have decided TO dlscontlnu,
all advertising by means of Autographs
displayed in shop windows. They say
that they receive more benefit from Tho