The Intermountain Catholic. (Salt Lake City [Utah] ;) 1899-1920, 1902-01-11
erived from all sources are satistac-

derived from all sources are satisfac-
tory.
'irhus the very interest which the
government pays on its bonds and
which reaches the Golfers of the bank
tends to reduce the rate of interest
which the people are compelled 10 paw
for the use OF money. In this way the
people pay the interest on the govern
ment debt to themselves.
Il am willing. however. to 90 on
record as in favor of an elastic cur
rency. and if l believed there was no
way to secure an elastic currency. Other
than. TO allow the issuance based Oh
assets, then L should advocate such
an issue.
4 am mindful of the fact that it Is
claimed that an elastic currency places
the control of the volume of our cur
rency in the hands of the banker
Granted. Where should it lie? [ am
willing that railroads snail determiaa
the number of cars to be used. for they
will build cars as long rs there is q
demand for them. The cars OF I'll
western railroads are all employed
when the crops are being moved. but
cars have to stand on the sidetracks
retired from circulation. while the crops
are growing. If cars could be con
structed as Cheaply as currency can be-
issued. they would be burned in the
spring and reissued in the fall.
But. as ] have said, 1 do not be
Iieve If necessary to resort to asset
banking in order to provide an elasti.
currency. 1 recognize public preju-
dice akin to fear, against currency
based on assets. and this prejudice, So
long as 1t exists, has an element OF
danger even of itself.
1T con believe that a graduated tax
of currency based on government bonds
would result in elasticity. Banks are
now required to hold 10 per cent cash
reserve. but the conservative banker
will sleep much better when he pays "a
| % per cent reserve. That 1 may MAKE
myself clear. permit an illustration, but
do not understand me as advocatiug.
or so much as suggesting, the correct
ness of the scale of taxation. l make
| it only as an illustration.
No class of our people will purposs-
" do anything to induce panic. OF
all the men in the world bankers fegr
panics. No merchant fails in business
without some bank suffering thereby.
No factory goes into the hands Of
receiver without having banker
among its creditors. The only man /
! ever heard say he had prOfted by the
panic of 1893 was a farmer, who took
. Il E1E
stock and in farm lands and drew his
money cut of the bank. purchased while
its board of directors were having mid
night sessions, devising ways and
means to escape destruction. and when
good times were restored and the bank
did not need his money he was enabled
to increase his deposit several fold He
told me frankly he wished We could
have another panic.
,esv- -FlfT "a MI
in Chicago in the summer of 1898
charged up a clean million dollars to
profit and loss, it's contribution to the
panic through which we had just
passed. At the rate of dividends which
nationaI banks are now paying, it will
only take fifteen years to make that
back. Personally 1 want to see qUes-
lions discussed. They should be talked
as occasion will permit over the coun-
try Justly the banker has the conf
dence of the community and no other
man has.
1--WE are the richest of nations. We
are in the best position on the map OF
the world. We have more energy than
any other people, and we ought to
have the best currency in the
world The reason why foreign
goods are marketed in pounds.
shillings and pence is because the
English pound has meant, ana always
will mean, a definite quantity of gold.
And the reason foreign balances have,
until recently, been usually settled in
drafts on London, is because a draft OH
England is always payable in gold or
its equivalent. want those questions
discussed until our. people shall fully
understand their logic. and then they
will demand an equally stable eurren-
cy.
Give the American merchant as
good tools, give him equal equipment
reinforce him with safe banking
system and he will write the prices
current of this earth in United States
money and make our financial Centers
the clearing houses of the world