Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1903-06-15

DOES NOT CONSIST OF AN AS
SET CURRENCY.
Congressman Clayton, Of Alabama, Proposed
Plan That Would Work Admirably in
Emergencies. Government Notes Issued
Upon Its Own Bonds.

Upon Its Own Bonds.
The republican fnance:s are all the
time talking about an emergency cur
rency, but the fact is that none Of them
have proposed currency that would
really be valuable in an emergency. No
as Ell currency meets this requirement,
and an asset currency is the only kind
II at the republicans contemplate. An
asset currency must necessarily be lien
upon the assets OF the bank, and if it is
only to be Issued when money is tight it
will in all probability intensity tie
stringency rather than relieve it. The
dangerous thing is that depositors will
get frightened and commence withdraw
ing their deposits from the bank, for this,
of course, embarrasses the banks and
compels them to draw in loans, and the
contraction OF loans embarrasses the
business community.
The only proposition looking to an
emergency currency worthy Of the name
was the proposition suggested in an
amendment offered by Congressman
Clayton, of Alabama, when the Fowler
bill was under discussion. 1t read as
follows:
A bill to provide an emergency circula-
ton fund, and for other purposes.
BE it enacted by the senate and house
of representatives OF the United States of
America in congress assembled, That
the secretary OF the treasury be, and he
is hereby authorized and directed to have
printed and to keep on hand United
States treasury notes under special ac-
count to be called the Emergency circu-
lation fund.-" Such notes shall be full
legal tender. Any citizen Of the United
States shall have the right to deposit
United States bonds, under rules and
regulations to be prescribed by the secre-
tary Of the treasury, and receive from
such fund one hundred per centum of the
face value of such bonds in United States
treasury notes, and shall have the right
at any time within twelve months to
redeem such bonds by repaying in United
States treasury notes the amount so re-
ceived by him on account Of such bonds,
with interest at the rate borne by the
bonds on such amount. Failure to re-.
deem such bonds within the limit Of
twelve months shall operate as for
fixture of such bonds to the United
States, and such bonds shall be sold to
the highest bidder in the open market,
and the balance, after the payment of the
principal OF the amount advanced. the
interest on the same, and the expenses,
shall be paid to the former owner OF such
bonds. Any moneys received from such
sale may be exchanged with other moneys
in the treasury, so that this fund shall
consist alone Of treasury notes. The
principal OF all sums so advanced when
repaid shall be returned to the "emer-
gency circulation fund.-" and all interest
upon such sums shah be passed to the
credit of the treasury under miscellaneous
receipts.
The actual amount Of notes held in the
emergency CIICUI0tlOil ItiHt rldIl HcNtI
be less than fifty million dollars in ex-
cess Of any outstanding advances. Said
fund shall neither be increased nor di-
minished except in the manner pro.
vided.
This is an emergency currency that
helps 1t is issued bv the government,
and is legal tender, like our present
greenbacks. Then, too, instead CT being
issued to banks to be loaned out at a high
rate of interest, it is issued to the holders
of government bonds whether they be
bankers or not. The government uses its
own bonds as collateral and there can
be no loss. 1t charges a rate OF interest
equal to the interest it is paying, so that
it saves the interest while the loan is
outstanding, and as the holder of the
bonds can at any time return the money
and secure his bonds he will act accord
ing to the plentitude or scarcity o
money.
From every rational point of view, this
would look like solution Of the question
OF emergency currency, and yet there il
one objection to it, and so long as the
republican party is in power it is fata
bjection-namely, that it helps the peo'
pie instead OF the banks. The republican
leaders cannot bring themselves to think
seriously OF any remedy that does moi
play into the hands OF the great capital
lists, but it is only question of time
when the people will get sufficiently
awake to their own interests to turn ou
the worshipers OF Mammon and put in
authority officials who will solve public
questions in the interests of the people
rather than in the interests OF the