Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1903-10-22
CURRENCY LEGISLATION.
Republicans Fear 10 Push IL Before
the EIection-HelpinE
the Banks.

Inc AluTlcn Dill, packed Dy the hOcke-
f~ellers. will perhaps not be pushed to a
vote in the coming congress. The repub-
lican leaders know that such legislation
is unpopular and will postpone the bill
until after the national election. The
same course will also be followed with
the asset currency Fowler bill, and for
the same reason. II the democrats carry
the next national election, those two bills
will never more be heard of, for both are
entirely at variance with democratic
ideas Of finance.
The Aldrich bill proposes to loan to the
banks the surplus money in the treasury
at a low rate of interest, which the banks
VIII o to the people at a high rate Of
interest. The most obnoxious result of
the passage of such a measure would be
that he banks would constantly be the
champions of high taxation. The more
collected from the people, the larg-
er the surplus and the greater amount of
cheap money the banks would get.
The democrats would reverse the pro-
position by reducing taxes, the tariff,
and only collect enough taxes to run the
government honestly administered. The
national banks now have over $165, 000,-
200 OF the surplus and the administration
is continually increasing the amount
h banks are crying for more, as well
they may, for it costs them nothing and
there is great doubt if they will ever re-
pay whatt they now have. The reason for
THIS is a simple one, for banks are I'M
like individuals, it is almost impossible
10 make them pay their debts to the gov
eminent if they don't want to. If the
present secretary of the treasury or any
future secretary should demand from
these favored banks the money that has
been deposited with them, they would de-
clare that to repay it would bring on a
panic. The banks have loaned this vast
sum to the stock brokers and others with
railroad and trust stock as collateral and
1t would require the calling of these loans
that is, the payment by the stock brok-
ers and others-and this they could not
do unless they should be able to borrowa
similar amount elsewhere. If these Dor
roWers OF the banks could not pay when
called on, the collateral would be sold
and forced sales of this character are
pretty sure to reduce the market price of
the stock sold and thus inaugurate a
panic. There is another provision i N
the Aldrich bill that the banks are anx-
ious to accomplish. The law now re-
quires that United States bonds shall be
deposited with the United States treas
ury for these loans and the bill provides
that other security may be taken in place
OF the bonds. Secretary Shaw has disre-
garded the law and in making recent
loans to the banks has been taken other
security. The intention of the law was
that all loans-deposits-should be Sc
cured by United States bonds, so that no
loss could ever occur. 1t is unlikely that
United States bonds will GO below par,
but railroad and other bonds and stocks
might depreciate far below the rs per
cent. of their face value that is the re-
quirement at present.
The asset currency bill is hardly likely
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 assets
of the banks, to al amount equal to their
capital stock. Such an imitation of the
currency of the country would result in
keeping up prices and might lead to a
serious loss to the government if many
banks should fail, in a prolonged panic.
1t 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 will oppose any bill
that favors the banks at the expense of
the people and it will be well for voters
to question their representatives on their
position on this important question.