The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1903-09-04
aASSET CURRENCY"
ans Are Devoid Of sound
business Judgment.


The stand of Uncle Joe Cannon
against rubber currency" is evidently
having some effect on the republican
leaders, and II seems quite possible that
the asset currency" idea may be
dropped. and the scheme OF loaning gov
eminent funds TO banks without secur-
tty may be taken up in its place. A
very significant utterance indicating
this. says the Indianapolis Sentinel. is
made by the New York Financier, which
would hardly say anything detrimental
to Wall street interests, but 1t comedies
the general distrust OF asset currency
as follows:
The possibilities which a food OF new
money invites are not pleasing to the ma
Jority. Wall street has been its worst en-
envy In this particular. Treating Wall
street as representative OF the speculative
craze which has swept over the country
within the past severa. years the reluct-
ance TO open wider the gates of gambling
opportunity Is not 10 be wondered at. The
solid Interests OF the nation view Wall
street with apprehension. They see In
currency expansion merely another invl-
tation TO burst OF speculative mania.
with It's Inevitable diversion OF the nations
wealth from its proper usages. The farm
err and the merchant are not suffering be-
cause OF any specific lack OF money, They
have been hampered by the draining Of cur
rency into Wall street. Doubtlessi 1t would
be a good thing for the farmer II. In the
fall. when he really needs funds. his bank
could issue him negotiable notes on its
pledged guarantee. to meet his wants.
but instances where crops go 10 ruin be-
cause OF financial inability to harvest
them are rare indeed. The farmer gets the
money somehow. and Wall street has TO
stand back while legitimate needs are be-
ing satisfied In word. the feeling Is that
any considerable expansion Of currency
at this time would benefit speculative and
not mercantile interests
The truth Of this will not be questioned
BY many bankers or business men who
have given any attention to the question.
and the belief of the general public that
asset currency" is speculative propo-
sition is well founded. for there has not
been a scheme Of issuing II proposed that
would not limit its issue to the big spec
ulative banking institutions. But the
Financier further says:
IF congress will make It clear that the
treasury funds are not TO be regarded as
a fetish. AZ IL will confer on the treasury
the privilege OF disposing Of its current
funds as the merchant or manufactures
does, the great weakness of our currency
system will have been met. True. times
may come when even such optional safe
guards will fail but let US not forget
that. speaking In a general sense, prosper
ity is beyond the power of law to control"
'Disposing of its current funds as the
merchant or manufacturer does, means
putting them in bank, without security.
But the difference is that the government
funds are held for the protection of its
credit in the stability of credit money,
and the utility OF the funds depends on
their constant availability. II they were
in banks. and were needed, the call for
them would aggrayate the need and
could not be met by the banks. During
the recent decentralization in Wall street,
300 on deposit in national banks, mostly |
in Wall street. II did not prevent the !
and If at the time the !
had called for its money, "as /
he merchant or manufacturer does"
{ would have precipitated a general
panic.
The unsecured loan scheme is just as
ully Wall street measure as the asset
scheme. The loans would nat
rally be made to the big institutions.
ust as they are now. and would be used
O promote speculation. II would enor-
nously increase the power of the big
indicates which have just shown their
'ower TO control the market price OF
securities without regard to merit. And
he safety OF the government would
,e linked to their success. for II the
indicate using the governments
money should get worsted In the con
est, the government would be out. The
cheme is not supported by solitary
consideration OF sound business judg-
nent.