Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1903-11-12
CURRENCY LEGISLATION
The Republicans Fear TO Push
II Before the Election.
ALWAYS HELPING THE BANKERS,

4 situation and Proposals THAT Are
Not Viewed With Favor ny the
Voters of Etthcr rartS~-What the
udrich and Fowler bills rrinci-
paIly Provide Enr.
The Ndrieh bin, backed Ivy the Rock
efellerS, will perhaps not he pushed 10
a vote in the rominS congwSs, The Ne
publican leaders know that such lCgiS-
latiou is unpopular and will postpone
the hill until after the national olcC-
ton. The same COURSE will also he toll
lowed With the asset currency Fowler
hill and for the Same reason, II the
Democrats carry the next national clcc-
ton those two bills win never more be
heard of, for both are entirely at VNW-
ance with Democratic ideas Of finance,
The AldriCh bill proposes TO loan TO
The banks the surplus money in the
treasury Ut low rate Of interest,
which the banks will loan to the pco-
pie at high rate OF interest. The
most obnoxious result of the passage
OF such Il measure would be that the
banks would constantly bc the champi
onS Of high taxation, The moro 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 and the
tariff and only collect enough taxes to
run the government honestly admins.
tered. The national banks now have
over SlG5,oOO,0oO of the government
surplus, and the administration is con
tinually increasing the amount The
banks arc crying for moro, rs well they
may for its costs them nothing, and
there is great doubt If they will ever
repay what they now have. Tho rca-
son for this is simple one, for banks
are unlike individuals, 1t Is almost
impossible to make them pay their
debts TO the government If they don't
want 10.
If the present secretary Of the treas
ury or any future secretary should de-
mand from these favored banks the
them they would declare that 10 repay
It would bring on Il panic. The banks
| have loaned this vast sum to the stock
brokers and others with railroad aud
trust stock MS collateral, and ii would
require the calling of these loans that
is, the payment by the stockholders
and others and this they could not do
unless they should be able TO borrow n
similar amount elsewhere. If these
borrowers of the banks could not pay
when called on the collateral would he
sold, and forced sales of this character
are pretty sure TO reduce the market
price OF the stock sold and thus mas
gurate n panic. There IL another pro-
vision in the AIdrich bill that the
banks are anxious to establish. The
law now requires that United States
bonds shall he deposited with the Unit.
ed States treasury for these loans ana
the bill provides that other security
may be taken In place of the bonds.
Secretary Shaw has disregaried the
law and in making recent loans To the
banks has been taking other security
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 20 below par,
but railroad and other bonds and
stocks might dcpreclate far below the
- per cent Of their face value that Is
the requirement III present
TIE asset currency bin Is hardly like.
~ to he pushed NJ the coming congress,
but its principal provision Is to allow
the banks TO issue their notes without
any security other than the general as
| sets Of the banks to mn amount equal
10 their capital stock. Such an inna-
ton OF the currency of the country
would result in keeping up prices and
might lead to n serious loss 10 the
government If many banks should fail
in prolonged panic
1t Il possible that some provision for
m elastic currency may be devised
that VIII be safe to the people ana
profitable to the banks, but the Fowler
/ bill is not 50 regarded.
The Democrats Will oppose any bill
that fayors the banks nj the expense Of
the People aud II viii be well for yot.
ers 10 question their representatives on
their position on this important qucs-
ton.