Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-06-13
FINANCIAL LEGISLATION
Our Present Monetary System
Is Falling to Pieces.
DEMANDS MADE BY WALL STREET

Preparing a Bill to Prop Up the
lettering Financial Structure-AId-
rich and Fowler at Odds on the
True Remedy.
The Republican party has been the
sole architect OF the present financial
policy of the United States and after
years of tinkering now acknowledges
that the whole fabric is a failure.
The leaders are now preparing more
legislation to prop up the tottering
structure, which has given warning by
various cracks and flaws that it is I'M
safe. 1t should be noted that the de-
mand for financial legislation does not
come from the public or even from the
country banks, but from Wall street.
There is constant wall of distress
from the kings of finance who rule the
financial world and dictate to the Re
publican leaders that more money
must be provided or they will not be
able ito move the crops
Having secured from complaisant
secretaries of the treasury pretty much
all the loose cash in the treasury, to
the tune of over $15O,00O,OOo, these
Wall street financiers are constantly
calling for more. The Republican lead
ers of the senate are preparing to aid
them to the extent the Rockefeller ele-
ment think most profitable to their in
tereStS. The chief demands of the
bankers is to be allowed to withdraw
the United States bonds that have been
deposited to secure the loans from the
treasury and replace them with munic-
ipal or railroad bonds. This would re-
lease S154.00O. 900 of United States
bonds that could then be used as a ba-
sis for further bank circulation. These
Wall street bankers are also the chief
owners of the railroads and control or
can borrow railroad bonds to substitute
as aforesaid. The further demand is
made by Wall street that the receipts
from customs may be deposited with
the banks as the receipts from internal
revenue taxes now are.
The Aldrich bill provided for this
and as sop to public opinion further
provided that 11a per cent interest
should be paid on such deposits. AS no
interest has been paid on the vast
amount now loaned the banks and they
ments of the treasury being such that
some or all Of the $154. 100000 they
now hold might be demanded, it was
intended by the interest provision of
the Aldrich bill to give the banks a
more complete and legal control of that
money. 1t is probable that the banks
will never repay that vast sum if the
Aldrich bill or a similar one is enacted.
as it would result in a panic if they
should be called upon to do so. The
money having been loaned out by the
banks on Wall street securities, it
would be necessary to call those loans,
and that would result in most in
stances in throwing the stocks held in
collateral on the market, and down
would go the price, and a full f1edged
panic would surely result.
There are other advantages the
banks want, but they are not entirely
agreed on details. Some are demand
ing that asset currency be issued by
the banks to gradually replace the
present bank notes now secured by
United States bonds. Some of the Re-
publican leaders in the house of repre-
sentatives favor that plan, but the sem
ate leaders do not seem to agree with
them.
The public, whose interests do not
seem to be much considered, do not
care what the bank currency is so that
it is safe and on a par with green
backs and treasury notes and always
receivable for debts and for purchases.
Greenbacks have been an ideal money
for the people, but they are now rarely
seen in circulation, the new plan being
to retire them, probably because the
banks make no profit on their circula-
ton. The treasury notes, silver certift-
Gates and the national bank currency
is the present money in the hands OF
the people and the gold and gold GER
tificates in the bank reserves. AS long
as there are different kinds of money
the banks will always keep the best in
their own vaults and pay out what
they consider the most undesirable. IL
asset currency = bank notes without
bonds as security-is provided for in
the new law it will be the least desir-
able money, as it will have only the
assets of the banks back of it and will
rapidly supplant even the silver certifi-
Gates in the ordinary transactions Of
the great mass of the people This con-
slant tinkering with the currency, and
always for the benefit of the banks,
should be enough to defeat the Re-
publican party and will do so when the
next time of stress comes around, and
unless all signs fail the periodical pan
&c is not far off.