The independent., 1903-03-26

the Fowler bill with its provision for
asset currency, that they turned with
feverish hopefulness to the Aldrich
bill with its provision to loan their
banks government funds upon mu-
nicipal and other outside securities.
The asset currency provision would
have enabled them to issue currency
without government or any other
kind of bonds; the Aldrich provision
would have released the government
bond as security for deposits, and made
them available for an issue of cur
rency. AS it is, government deposit
without interest secured by govern
ment bonds is more profitable than a
national bank currency, secured by
government bonds, on which they
must pay one-half Of l per cent, and
tie up 5 per cent Of their face value
in the redemption fund. In conse-
quence of this situation, the deposit
loans are being steadily increased, and
the bank currency just as steadily de-
creased
We have had one deception after
another concerning the purposes of
proposed legislation ever since the
enactment of the bank law in the
SOS. Now we are told that one of the
purposes of the Fowler bill is to put
certain burden Of redemption upon
the national banks. 1t is most
absurd and ridiculous proposition. The
whole national combination could not
stand alone ten days, if the assist
ance OF government money and the
national credit was taken away from
it. To put any kind Of government
duty upon these banks can only re-
suit in more exertion Of government
powers to hold them up. 1t has been
quite a favorite assertion from those
who repeat, without understanding,
what bankers say, that the govern
ment should keep out of the banking
business. ,.,s--
Nevertheless, the eastern banking
interests have, for forty years or more,
been scheming to place upon the shoul-
ders OF the government. the RESPONSE
bility and burden of holding up these
banks, and thus holding off finan-
cial catastrophe.
On February l it appears by the
public debt statement that there was
an available cash balance of $685.
345,963 in the United States treasury?
But how available? ~.
Well, $150,000,000 of it is the gold
reserve. Then there was almost
$143,000,000 of deposit loans in ma
tional banks. This cannot be called
in without disaster. This makes a
total of about $293, 100000 of the So
called available funds not available
at all, and leaves only about s75,000,-
900 really available.
The interests that control the ma
tienal bank combine demand that the
deposit loans from the government
shall not be decreased, and they have
manipulated the situation until Mr..
Shaw dare not decrease them. To do
SO would precipitate financial panic.
While the bank situation is such
that it is essential to the safety of
many of them that these deposit loans
shall be continually increased, this
can only be done by continuing to take
out Of the pockets Of the people, by
duties on imports, an amount largely
IN excess or what is required by the
legitimate expenses Of the govern
ment Without such continuation of
import duties, Mr.. Shaw would be
compelled to cease to increase such
loans. He might be required to de-
crease those already made. The gov
ernment's responsibility for the ma
tional banks continually increases. In
stead of getting "out Of the banking
business" We are becoming each year
more and more involved in it. We
are furnishing large part of the cap
ital and all the credit. The entire
profits go to the banking corporations,
while the nation receives not one dol
lar in either profit or interest.
1t is SO nonsensical that 1t is little
short of idiotic for free trade leagues
to advocate the reduction of import
duties to revenue basis while SO