The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-06-07
MIR. BuRKE's BUGABoo.

The Indiana Democrat Is the name or
weekly publication which seems to have
been started under the conviction that the
Sentinel cannot furnish the Indiana De
mocracy that quantity and quality Of mis-
information that is essential to its ediica-
ton. The attention Of the Journal has been
specially called to the first article in the
first issue of this new champion of fleeting
principles, entitled Analysis OF the over
street Bill" by the Hon. Frank 3. Burke.
This is the so-called Fowler currency bill,
which has been reported TO the House by
the committee on banking and currency.
Mr. Burke seems greatly concerned about
this bill. He assumes that it is as good as
enacted, and his imagination leads him TO
assert that the Journal has Endorsed the
measure, which is not the case. The bill
will be considered by a caucus Of the Re
publican members of the House on June 9,
and advices from Washington are that the
caucus will not indorse the measure be-
cause ii contains several features which
are not approved by many members. Con-
sequently, unless Mr.. Burke can make some
t-of-the-way Democrats believe that the
bill is a law, he has had his labor and used
his adjectives in vain.
Tho bill embraces several features, too
many, 1T is thought, to be considered at one
time. and it has been put forward with a
view OF learning public sentiment and re-
ceivinS suggestions more than with any
hope OF it's Enactment That part or the
hill which nrovides for tho redcnantion ~
silver dollars in gold should meet general
approval. The other features OF the bill
should be considered. At the present time
the bonds OF the United States are selling
so much above par that banks which have
them deposited as security for bank circu-
get their bonds that they may sell them.
This transaction is reducing the volume OF
the currency. When it is considered that
few million dollars OF legal tenders can
make the difference between a stringent
and an easy money market, men whose
only thought in public affairs is demagogy
will see how important this subject can be.
The Journal has never favored what is now
called asset banking, because some of those
about IL can remember the days Of Demo-
cratic wildcat banking on no assets that
were available, and consequently are dis
trustfuI of any banking which has not a
good dollar OF security for each dollar in
circulation.
Mr.. Burke. however should have no
qualms of any kind about asset banking.
When Andrew Jackson broke up the Bank
of the United States, which had adequate
funds to meet its liabilities, he put the
governments money into favored state
banks which were issuing millions of notes
without any security except stock sub
scribed and not paid up. Mr.. Burke's party.
or rather the faction to which he belongs,
has always rallied at the national bank.
Several times have his party associates in
| Congress made efforts TO repeal the tax
imposed upon state bank circulation, and
the Cleveland platform of 1892 made di-
rect demand for the repeal of the tax of 10
per cent. on state bank notes. During that
campaign Mr.. Burke was not so prominent
as a leader Of the anti-conservatives of his
party as he now is. Consequently 1t cannot
the party platform for state banking on
assets, but it is fair to assume that he did,
because he championed that which Repub-
licans most sharply assail.
Very naturally Mr.. Burke, who is not a
constructive statesman, offers no substi-
| tute for any feature of the Fowler cur
rency bill. All his capacity is as a destruc-
| tive agent. Now, the business men of the
| country, the men who move crops and
| carry large stocks of merchandise before
the season is open, assert that at times
the currency of the country is not adequate
to the volume of business which must be
done. They ask for some provision of law
which will make the volume of currency
flexible so as to respond to the demands
of the country. Has Mr.. Burke any plan
Would he have the government isste notes
without security and trust to luck for their
redemption? Would he have state banks
issue such notes. or would he make other
than United States bonds a security for
bank circulation?
AS for the Fowler bill, which he calls the
Overstreet bill, there is no more probable
ity of it's becoming law than there is that
Mr.. Burke will be translated to the realms
OF light and truth for seriousness.