West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1903-11-12
CURRENCY LEGISLATION
The Republicans Fear to Push
It Before the Election.
ALWAYS HELPING THE BANKERS.

A situation and Proposals That Are
Not Viewed with Favor by the
Voters OF Either rarty-what the
Aidrich and Fowler mi. priact-
paiiy Provide ror.
The AIdrfch bill, backed by the Rock
cfellers, Will perhaps not bc pushed TO
vote In tho coming congress. The Re.
publican leaders know that such icgis-
lation Is unpopular and VIII postpone
tho bill until after tho national cleo
ton. The same course will also be fol.
lowed with the asset currency Fowler
bill and for tho Same reason. IL the
Democrats carry the next national cleo
ticn those two BILLS will never more be
heard OF. for both are entirely nj vari.
ance with Democratic ideas OF finance.
The Aldrich bill proposes 20 loan To
the banks the surplus money In tho
treasury at q low rate of interest.
which the banks will loan TO tho peo-
pie at high rate OF interest. The
most obnoxious result OF the passage
OF such u measure would be that tho
banks would constantly be tho champl-
ons OF high taxation. The more taxes
collected from tho people the larger tho
surplus and the greater amount OF
cheap money the banks would get
The Democrats would reverse tho
proposition by reducing taxes and the
tariff and only collect enough taxes 90
run tho government honestly admins
tered. Tho national banks now have
over S165,0o0.0oo OF the government
surplus. and the administration Is CON
tinually increasing the amount. The
banks are crying for more, as well they
may, for It's costs them nothing. and
there Is great doubt IL they will ever
repay what they now have. The rca-
son for this is simple one, for banks
are unlike individuals. IL * almost
impossible to make them pay their
debts to the government IL they don't
want TO.
II the present secretary of tho treas.
ury or any future secretary should de-
mnnd from these favored banks the
money that has been deposited with
them they would declare that to repay
II would bring on n panic. The banks
have loaned this vast sum to the stock
brokers and others with railroad and
trust stock rs collateral, and IL would
require the calling OF these loans-thnt
Is, the payment by the stockholders
and others-and this they could not do
unless they should be able 10 borrow n
similar amount elsewhere. IL these
borrowers OF the banks could not pay
when called on the collateral would bo
sold, and forced sales OF this character
are pretty sure TO reduce the market
price OF the stock sold and thus inau-
gurnte panic. There IL another pro-
vision I'm the Aldrich bill that the
banks are anxious TO establish. The
law now requires that United States
bonds shall be deposited with the Unit
ed Stntes treasury for these loans, and
the bill provides that other security
may be taken I'm place OF the bonds.
Secretary Shaw has dlsregarded tho
law and In making recent loans to the
banks has been taking other security.
The intention OF the law was that MI
oans-deposits-sh be secured by
United states bonds, no that no loss
could ever occur. IL is unlikely that
United States bonds Will go below par,
but railroad and other bonds and
stocks might deprecinte far below the
10 per cent OF their face value that il
the requirement at present
The asset currency bill Is hardly like
ly TO be pushed at 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 20 an amount equal
to their capital stock. Such an inna-
ton Of the currency of the country
would result in keeping up prices and
might lead 20 serious loss to the
government IL many banks should fail
ina prolonged panic.
II Is possible that some provision for
an elastic currency may be devised
that will be safe TO the people and
profitable TO the banks, but the Fowler
bill Is not so regarded.
The Democrats VIII oppose any bill
that favors the banks Mt the expense OF
the people. and Il will be well for yot-
ers TO question their Representatives on
their position on this important ques-
ton.