Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-09-03
INHAW ) UURKENUl PLANS
Iowan in Address at Chicago Advocates An
Increase in the Volume of Money.
|ISSTRONCLYIN FAVOR OF SHIP SUBSIDIES
SAYS
THERE ARE NO CLOUDS THE NATIONAL HoRizoN-sAYs
CAUSED SIMPLY WEAK NERVE AND RE-
PROVES THE TlMiD CAPITALISTS WHO BY THEIR
INACTIVITY TEND TO PROMOTE DlsTRusT.

doubts existed as to the wisdom of at
tempting to maintain their parity.
Aye, a very respectable number of
very good people, and very respecta-
Bile portion of very good public
press, openly advocated the redemp-
ton of greenbacks in silver and the
refusal to exchange gold for any form
of money except gold certificates. No
such doubt or desire now exists. By
express statute it has become the duty
of the secretary of the treasury to
maintain the parity with gold of all
forms of money coined or issued by
the government, and express authori-
ty is given to negotiate loans, If nee
essary, for that purpose. In other
words. the secretary of the treasury
is directed to exchange gold for any
and every kind and form of money
coined or issued by the United States,
and to bond the government to the
last limit of his authority whenever
such action is necessary to the main
tenance of parity. A man is a fool
who sends his money into hiding now.
st Is true that very respectable
number of very good people, and of
that number | desire to be classed,
believe our financial system, good as
| 1t is, might be improved by adding an
| element of elasticity. L do not think
there exists any great number who be-
| lieve we should have any imitation.
Eight years ago we had $21 per capita.
| Now we have certainly more than 500
and probably nearly $50 per capita.
! Conservative business men and con-
sentative bankers do not generally
consider this an insufficient normal
minimum volume of currency. re-
peat. the only criticism now offered
relates to the want of elasticity. Not
that dollar can be made elastic, but
that the volume shall be made re-
sponsive to the demands of business.
Of course the term is misnomer.
Elastic material like rubber will ex-
pand in one direction, but it contracts
in the opposite direction, while the
material, the volume, is neither in
creased or diminished. What is need
ed is not an elastic dollar, but some
provision by which, automatically,th the
aggregate volume, of dollars shall in
crease whenever and wherever more
dollars are needed, and will as prompt
| ly retire when not needed.
| lDelt 10 llOW III oldtuIOlS ploHlDi-
ton against the well-nigh Inherent
right of hanks to issue circulating
notes. This right exists throughout
the United States. but subject to a
tax of 10 per cent per annum. This
tax is prohibitory If I were given
authority to formulate measure that
would provide the requisite elasticity
to our present currency system,
think should add an amendment per.
hitting national banks, with the con-
sent of the comptroller of the curren-
cy, to issue volume of circulating
notes equal to so per cent of their
bond-secured circulation. at tax OF 5
per cent, the same to be retired at will
or by direction of the comptroller. by
the deposit of an equal amount of law.
full money with any subtreasury.
Three things l know. First, this
additional circulation would spring
into existence almost instantly when
| ever and wherever interest rates ad
vanced to the point of profit. Second
it would as promptly retire whenever
| interest rates became normal. Third
it would be absolutely safe-as good
as the present national bank issue and
with slight and immaterial change
identical in form and appearance-fol
the government, amply protected by
the per cent tax, would underwrite
it. But you say this is emergency cur
rency. Anything more is imitation. II
has the advantage, however, over
emergency currency So named, ano
over legalized clearinghouse certifi
Gates in that it inJects into the com
merce of the country no new or doubt
full form of money, and the presence