The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-17
Financial Legislation.

Senator Lodge nad al INTERVIEW Will
the president yesterday at Oyster Bay,
In which the latter expressed the nope
that congress might be able to take up
financial legislation for early consldera-
ton along the lines of his messages and
speeches since he became president. The
president expressed himself deeply inter-
ested in such legislation. He evidently
does not shy at financial legislation as
does the Honorable Joseph G. Cannon,
who has already given out that he is OPP
posed to it and will not permit 1t so far
rs he can prevent it, as speaker of the
new house.
It is very probable, indeed that the.
president will recommend financial legis-
lation of tentative character, at least,
as there seems to be a disposition to avoid
any measure Of general banking and cur
rency reform. It is understood that the
subcommittee of the senate finance COM
rnittee, Messrs. Aldrich, Allison, Plat OF
Connecticut and Spooner have been con-
sidering various plans for currency reform
during the recess in order to bring in
a bill to the full committee when the
senate meetS, ana Senator LOuSS 10 VI siiS
opinion that the house committee on bank
ing and currency will take up the subject.
OF the senate subcommittee, it is said all
are opposed to asset currency except Sen
ator Spooner. Senator Aldrich, in the
measure he introduced at the close Of
the last session Of congress, desired to
perpetuate bond secured national bank
hon c
held to secure the government funds de-
rived from internal revenue receipts and
customs deposited with the nationals, and
making them available to the banks for
more note issues. This he proposed to
accomplish by permitting the banks to
secure deposits with first class municipal
and state bonds. No one can tell, OF
course, the nature of the bill which the
senate committee will produce out Of their
conference. The former measure did not
embody the feature of elasticity; no pro-
vision was made for removing the pres
ent limitation on the retirement of ma
tional bank notes. The first Aldrich bill
was moderate enough, certainly. The dis
position in the last house to favor the
OWlSl Dlll, SlilDJuy lllO 1C1tetiO " o1o
set currency, has stirred up the cham
pions of perpetuating the present sys-
tenn Of using government bonds exclu-
sivey as security for note issues Of the
nationals, and there is small prospect 70,
the Fowler or any other asset currency
measure to get thru congress. The cry
of RED Dog!'' which makes some people
hot
means reaction to private shinplasters, is
of course absurd. The asset plan simply
means that national banks be permitted
to issue credit currency, based on othel
assets than government bonds and secured
by cash reserve Of 25 per cent of it.
volume in redemption money. There il
no proposition to abolish the bond secured
currency, and the purpose is to make i
possible to augment the currency whel
there is a business reason for increase
the issues of such emergency circulation
being as safely regulated as the bank cur
rency now in use. But there is abou
as foolish talk against the Aldrich bill o
last winter, as it was charged with bein
exclusively in the interest of easter
bankers. and Rockefeller was portraye
as grinding out limitless currency fror
his own banks and deluging the countr
with it, basing it upon rotten securities
AS a matter of fact, pending all tlies
misapprehensions Of financial measure:
there is little doubt that. II a REASONABLE
and moderate measure of reform
pushed judiciously it will pass. VIVA
President Roosevelt said in his first an
nual message in 1901 he would DOUBTLESS
say to-day, as to currency reform. o
that occasion he said: TN many respect
the national banking law furnishes suff
cient liberty for the exercise of the bank
Ing function; but there seems to be
need of better safeguards against the de
ranging influence of commercial crise
and financial panics. Moreover, the cul
rency of the country should be made re
sponsive to the demands of our donlest
trade and commerce"
That is a good enough outline for az
ton for congress to follow, isn't it?