The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-14
The Currency Reform Committee.

st senators AluTlCH, AiIlSOH, SpOOIeI%gs aAu
Plat Of Connecticut are at Hot Springs
Va, in conference touching a measure for
currency reform to be reported to the
senate finance committee at the regular
meeting Of congress in December next.
These senators constitute a sub :.
tee of the finance committee and the duty
Of devising such a measure was assigned
to them at the close Of the last session OF
congress. The members OF the sub COM
mittee are not likely to report any radical
measure. They are men OF experience,
and conservative in their Views and are
fully alive to the need.o of the country for
what is called an elastic currency, or!
one which will promptly respond to the
needs Of business expanding when the
volume Of business requires, as in crop
moving time, and contracting when there
is no urgency for money.
Senator Aldrich, chairman Of this sub
committee. devised a, bill for currency res
form at the last session of congress, but It
failed OF passage. It provided, In SUBJ
stance, that internal revenue funds and
customs receipts as we'll could be de-
posted with the national banks and that
| the security for such funds deposited with
the government might be first-class state
/ and municipal bonds as well as govern
ment bonds The highest class Of railway
! bonds were also included. Aldrict stated
last winter that this measure was only
i tentative and in the nature Of an expedi-
ent: His bill embodied the commendahle
feature Of releasing government bonds
used as security for government deposits
and making them available as security for
national bank circulation, thus insuring
increased circulation. So far it was all
right; but there was not line In the bill
which provided way to contract the cur
Irency thus expanded to limited extent
The subcommittee will wrestle with this
problem. It is understood that the mem.
bers have no sympathy with the Fowler
proposition for an asset currency which
is rather strongly opposed in the west
In the house of the last congress there
was developed a disposition, on the par
OF some influential members, to supper
the Fowler asset currency bill, and it Il
understood that they propose to max,
another fight for it atsthe next session o
congress. Western bankers, or consid
cradle number of them, 1t may be remem
bered, opposed the Aldrich bill last win
ter on the ground that the substitution o
state, municipal and railway securities 70
government deposits in the national bank
and the charging Of interest upon then
would concentrate government deposits i
, the New York banks, where miscellaneou
! bonds can be easily borrowed and use
as security for deposits made by the gov
. eminent.
3 There is small prospect for the .passag
. Of an asset Or credit currency bill by til
: next congress. There Is nothing reall
Il dangerous In such measure It's oppon
: ents have greatly exaggerated their OF
a jections. The issues would be as closel
t under federal inspection as national ban
t currency is, but 1t would be an innovs
: ton and the public are shy, OF innovation
In finance. The senators OF the sub-con
mittee OF the senate finance comrnitte
: will doubtless propose a moderate finar
cial bill which will be free from the chars
Of being revolutionary The Aldric
y bill with a safe provision for autonat
: contraction of the currency would Gel
tainly meet the admitted necessity by IL
business world for an elastic currency