Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1903-10-20
Currency Legislation.


The Aldrich bill, backed by the
Roekefellers, will perhaps not be push
ed to a vote in the coming congress.
The Republican leaders know that
such legislation is unpopular and viii
postpone the bill until after the ma
also be followed with the asset cur
rency bill, and for the same reason.
II the Democrats carry the next ma
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
to the banks the surplus money in the
treasury at a low rate of interest,
which the banks viii loan to the peo-
pie at high rate of interest. The
most obnoxious result of the passage
of such a measure would be that the
banks would constantly be the cham
pionS of high taxation. The more taxes
collected from the people, the larger
the surplus and the greater amount
Of cheap money the banks would get
The Democrats would reverse the
proposition by reducing taxes-the
tariff and only collect enough taxes
to run the government honestly adj
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,
for it costs them nothing and there is
great doubt if they will ever repay
what they now have. The reason for
this is simple one, for banks are
unlike individuals, it is almost inn
possible to make them pay their debts
to the government if 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 de-
posted with them, they would de-
clare that to repay it 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 it would require the
calling of these loans-that is the pay
ment by the stock brokers and others
and this they could not do unless they
should be able to borrow a similar
amount elsewhere. If these borrowers
Of the banks could not pay when
called on, the collateral would be sold
Il .
pretty sure to reduce the market price
Of the stock sold and thus inaugurate
4 panic. There is another provision
in the Aldrich bill that the banks are
anxious to accomplish. The law now
requires that United States bonds
shall be deposited with the United
States treasury for these loans and
the bill provides that other security
may be taken in place of the bonds.
The intention of the law was that all
loans-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
is the requirement at present.
The asset currency bill is hardly
likely to be pushed at the coming
congress, but its 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
the country would result in keeping
up prices and might lead to a seriors
loss to the government if many banks
should fail, in prolonged panic
1t is possible that some provision
for an elastic currency may be de
vised 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
that favors the banks at the expense
Of the people and it will be well for
voters to question their representa-
tives on their position ON this impor-
tant question.