The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-03
The President on the Currency.

president Roosevelt DECLARES. In his mes |
sage that it would be both unwise and
unnecessary to attempt at present a re-
construction of our financial system, but
he admits the necessity of securing great |
err elasticity to our system: that circula-
ton adequate to the needs Of our diver
sifled industries and Of our domestic and
foreign commerce should be secured and
that all kinds of currency should be made
interchangeable and at the will of the
holder convertible into the established
gold standard. .:...-
There is no doubt that, in. these two
tenn, is specially needed, There is small
probability that the Fowler bill or any
other financial bill looking to a general
revision Of the currency system can obtain
due consideration at this session Of con-
gress The proposition to establish a
branch banking system and asset secured
currency, although sustained by it's cham
pions with very strong arguments, has not
secured the sympathy Of congressman
generally, but the suggestions of the
president, as to perfecting the legislation
of March IA, 1900, by making the stand
ard silver dollar interchange able with gold
and securing greater elasticity to our cur,
rency to make it adequate to the needs of
business are reforms which ought to COM
mend themselves to the business COM
munity.
The first proposition is based on the
pledge of the republican party to establish
the gold standard pure and simple. That
will not be accomplished until all kinds of
our money are made interchangeable with
gold. ''s' &. 'f-
The second proposal, to secure greater
| elasticity to our currency system, is a
| similarly important business proposition.
| If congress will not attempt any general
! currency reform, these two strictly and
essential business propositions press for
consideration. There is very little elias
ITCHY at present in our currency system.
What there Is of it is operated by the in
fuence Of the price Of United States bonds
and not by the public. requirement for
currency. Secretary Gage, during his five
years tenure of the secretaryship of the
| treasury, had a big surplus to deal with
and he used it chiefly in buying United
States bonds at premium. During the
last nine months Of 1901 he bought bonds
whose par value was s5e,oOo,o 900, for which
he had to pay s72,oo0,o0o, on account OF
the big premium borne by the bonds In
cidentally he averted monetary string
ency, but as President Roosevelt says
| he ,ot1 cc,>Ua mrs Of
MERGE and upon them should be placed the
burden Of furnishing and maintaining 8
circulation adequate to supply the need:
of our diversified industries"
| When Secretary Shaw succeeded Gage
he gave out that he would cease purchas
ing bonds to relieve the money strinsency
He did stop for a while, butr during thu
stock market stringency this autumn, h
became a purchaser and, like Gage, had t
pay big premium on the bonds pur
chased. He also took some s17,000,000 o
municipal and state bonds as security TO
internal revenue receipts deposited will
the nationals, under his Interpretation o
the law relating to such deposits and 81
relieved the banks Of the necessity o
buying high priced bonds OF the govern
ment. 3,s=-
: Every year there is more, or less troubl
over the question of the money suppl
for moving the crops. If the banks coul
supply currency, according to the need
of business, easily and automatically, tn
problem would be solved. a
AS Controller Of the Currency F;idgel
t suggests in his report. the banks coul
e be allowed to have reserve power to max
E additional issues Of notes secured by two
Z thirds their value in bonds and absolutel
), safe to the noteholder by the guarant
d fund raised by the tax on circulation, tn
IS amount issued by each bank to be Unite
q by the secretary of the treasury. Thes
n issues should be taxed heavily so tbs
d when the emergency which brought thel
% forth ceases, the issues would be witt
l. drawn and returned to the issuing banl
: There is no danger that the adoption
% this principle would, as is suggested
q some quarters. defer the enactment of