The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-08-28
PROPOSED CURRENCY LEGIsLA-
TION

The latest report from oyster Bay Is
that the President isn't hopeful that
much will be done towards enacting
currency reform legislation during the
| approaching session of Congress. The
| subcommittee of the Senate Finance
| Committee that has the matter under
consideration has met with but little
| encouragement in it's work, and it is
said that it's members are doubtful If
it will be possible to frame general
currency bill that will meet the ap-
prevail of Congress.
Mr.. II. H. Kohlsaat, of Chicago, has
had a talk with the President on the
| subject within the last few days and
the impression he gained was that it
was the purpose of the Republican
leaders to attempt to do very little in
the direction of changing existing cur
rency laws. According to Mr.. Kohl
saat two things viii be attempted,
namely, the repeal of the law limiting
the amount Of bank notes that can be
withdrawn within a single month to
SO, 900 900. and the enactment of a law
providing for the deposit Of custom
house receipts in national banks on
the same terms as internal revenue re-
ceipts are deposited,
When the law limiting the with
drawal of bank notes in any one
month to $3.O0O.0 was enacted there
was strong feeling against national
banks. The belief was entertained
that if the national banks were free
to withdraw all the notes they pleased
they would withdraw enough to make
money scarce, so they would be able to
get a higher rate of interest. The re-
suit of the law has been to prevent
banks from taking out as many notes
when needed as they would if they
had the right to withdraw them when
not needed. AS a matter of fact, it is
not to the interest of the banks to
make money dear. 1t is to their inter-
est to do what will help to make their
customers prosperous. The more pros
porous the business community is the
more money the banks make. There
fore, the law limiting the withdrawal
of notes was based upon an erroneous
idea. That being the case, it is
thought Congress will have no objec-
tion to withdrawing the 100000 re-
striction.
And it is believed that there will be
no strong opposition to deposting the
receipts of the custom houses in the
national banks, but there may be OPP
position If an effort is made to permit
the Treasury to accept other security
from national banks than government
bonds for money so deposited.
The Aldrich bill, which attracted so
much attention in the last Congress,
provided that the Treasury might ac-
cept variety of bonds as security for
money deposited with national banks.
1t was said at that time that there
was a scheme to unload bonds of
doubtful value on the govern
ment, and 1t will be said
again If the effort is made to
let national banks dump all sorts of
bonds into the Treasury as security
| for government deposits for if that
! policy were to prevail it wouldn't be
long before the Treasury. would be
loaded up with millions of dollars of
bonds of doubtful value. 1t is prob
able that Congress, in addition to
government bonds, would permit the
Treasury to accept state bonds as Sc
curity, but it is pretty certain that it
wouldn't permit it to accept railroad
bonds
But why should the government col
leet so much more than it needs? Why
not cut down the tariff taxes and
leave money for which it has no need
in the pockets of the people? Why
collect many millions of dollars
more than 1t needs? 1t has either to
loan it to the national banks, thus
enabling them to grow rich on the
money of the people, or it has to keep
the money piled up in the Treasury.
thus making money scarce and dear.
The wiser plan is to reduce the tariff
taxes, thus leaving the money the gov
eminent doesn't want in the posses
sion of the people There wouldn't
then be any question as to the kind
of security the national banks should
give for money deposited with them
by the TREASURY