The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1903-10-15

The Aldrich bill, backed by the
ROckefellers. will perhaps not be push
ed to vote in the coming congress.
The Republican leaders know that
such legislation is unpopular and will
postpone the bill until after the na-
tional election. The same course will
also be followed with the asset cur
-ency bill, and for the same reason
If the Democrats carry the next na-
tional election, those two bills will
never more be heard of for both are
entirely at variance with Democratic
IDEAS of finance.
The Aldrich bill proposes to loan
20 the banks the surplus money in the
treasury at a low rate of interest.
which the banks will loan to the peo-
pie at a high rate of interest The
most obnoxious result of the passage
Of such measure would be that the
,anks would constantly be the cham
'ions of high taxation. The more taxes
collected from the people. the larger
he surplus and the greater amount
Of cheap money the banks would get.
The Democrats would reverse the
proposition by reducing taxes-the
.aHf and only collect enough taxes
20 run the government honestly ad-
ministered. The national banks now
have over $165. 100000 Of the surplus
and the administration is continually
increasing the amount. The banks
are crying for more, as well they may,
'Or it costs them nothing and there is
great doubt if they will ever repay
what they now have. The reason for
his Is simple one, for banks are
Unlike individuals. it is almost i'm
possible to make them pay their debts
% the government if they don't want
%. If the present secretary of the
treasury or any future secretary
should demand from these favored
banks the money that has been de-
posted with them. they would de-
,lare that to repay it would bring on
panic. The banks have loaned this
'ast sum to the stock brokers and
others with railroad and trust stock
rs collateral and it would require the
Ealing of these loans-that is the pay
nent by the stock brokers and others
md this they could not do unless they
should be able to borrow a similar
AMOUNT elsewhere. If these borrowers
IF the banks could not pay when
,alled on, the collateral would be sold
md forced sales of this character are
pretty sure to reduce the market price
" the stock sold and thus inaugurate
panic. There Is another provision
n the Aldrich bill that the banks are
anxious to accomplish. The law now
'equires that United States bonds
shall be deposited with the United
States treasury for these loans and
he bill provides that other security
nay be taken in place of the bonds.
The intention of the law was that all
!Oans-deposits. should be secured by
United States bonds, so that no loss
could ever occur. 1t is unlikely that
United States bonds will go below
par. but railroad and other bonds and
stocks might depreciate far below the
10 per cent. of their face value that
the requirement at present
The asset currency bill is hardly
likely to be pushed at the coming
congress, but it's principal provision
IS to allow the banks to issue their
notes without any security, other than
The general assets of the banks, to
an amount equal to their capital stock
Such an imitation of the currency of
he country would result in keeping
up prices and might lead to serious
oss to the government if many banks
should fail. in a prolonged panic.
1t is possible that some provision
for an elastic currency may be de-
gised that will be safe to the people
and profitable to the banks, but the
Fowler bill is not so regarded.
The Democrats will oppose any bill
hat favOrs the banks at the expense
Of the people and it will be we'll for
voters to question their representa-
lives on their position on this impor-
!ant question.