The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1903-10-23

Republicans Fear to Pssh IL before
the Ele
the banks.

The Aldrich bill, backed by the Rookie
fellers will perhaps not be pushed to
vote In the coming congress The repub-
lican leaders know that such legislation
In unpopular and will postpone the bill
until after the national election. Tho
same course will also be followed with
the asset currency Fowler bill. and for
the same reason. II the democrats carry
the next national election. those two bills
will never more be heard OF. for both are
entirely ut variance with democratic
ideas Of finance.
The Aldrich bill proposes to loan to the
banks the surplus money In the treasury
at a low rate OF interest. which the banks
will loan to the people at high rate OF
interest The most obnoxious result OF
the passage OF such measure would b
that the banks would constantly be the
champions OF high taxation. The more
taxes collected from the people. the larg-
er the surplus and the greater amount OF
cheap money the banks would get
The democrats would reverse the pro-
position by reducing taxes, the tarin.
and only collect enough taxes to run the
government honestly administered The
national banks now have over &165 .000.-
900 OF the surplus and the administration
is continually increasing the amount.
The banks are crying for more. as we'll
they may, for ii costs them nothing and
there is great doubt II they will ever re-
pay what they now have. The reason for
this is a simple one, for banks are un-
like individuals, 1t Is almost impossible
TO make them pay their debts to the gov
eminent il they don't want to. If the
present secretary OF the treasury or any
future secretary should demand from
these favored banks the money that has
been deposited with them. they would de-
clare that to repay 1t would bring on
panic. The banks have loaned this vast
sum to the stock brokers and Others with
railroad and trust stock as collateral and
II would require the calling of these loans
that is. the payment by the stock brok-
ers and others-and this they could not
do unless they should be able to borrow
similar amount elsewhere. II these bor-
rowers of the banks could not pay when
called on, the collateral would be sold
and forced sales of this character are
pretty sure to reduce the market price Of
the stock sold and thus inaugurate .
panic. There is another provision In
the Aldrich bill that the banks are anx-
ious to accomplish. The law now re-
quires that United States bonds shall be
deposited with the United States treas
ury for these loans and the bin provides
that other security may be taken in place
of the bonds Secretary Shaw has disre-
garded the law and in making recent
loans TO the banks has been taken other
security. The intention OF the law was
that all loans-deposits--shou be Sc
cured by United States bonds, so that no
} loss could ever occur. II is unlikely that
: United States bonds will 60 below par.
I but railroad and other bonds and stocks
J might depreciate far below the rs per
: cent. of their face value that is the re-
. Quirement at present.
J The asset currency bill is hardly likely
TO be pushed at the coming congress, but
| its principal provision Is to allow the
: banks TO Isl lie 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 the country would result In
keeping up prices and might lead TO a
? serious loss to the government II many
. banks should fail, In prolonged panic.
| 1t Is possible that some provision for
an elastic currency may be devised tina.
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
. that favors the banks at the expense OF
the people and 1t will be well for voters
/, to question their representatives on theii
position on this important question.