The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-14
The Currency Conference.

According to the intmations which
come from Oyster Bay, the members OF
the senate subcommittee who have met
to devise a. currency measure have some
definite Idea Of what they propose to do
and do not contemplate Launching
measure until it has been talked over
by experienced men of variant views from
all sections of the country.
The president told the committee at
first that 1t Is most desirable to have a
genuinely elastic currency system adopt
ed. providing for expansion when
necessity demanded and contraction
when the necessity ceased to exist, put
that it must have the united support OF
the republicans in the senate and house
and must be on broad lines and not open
to the charge that it was planned to make
it easy for the banks to get money out
of the treasury, In order to lend 1t to stock
specula tors who get in hole. OF course,
there has never been an occasion when
the treasury has appeared In the money
market to give relief in time OF stringency
and crisis, when it has not been accused
by somebody Of trying to boom specula-
ton or help lame ducks. It has certainly
done mischief when 1t has disbursed
money during speculation or boarded
when there Is healthful business ex-
pansion, and the best judgment is re-
CURED to meet public demand either for
expansion or contraction. by depositing in
ternaI revenue receipts with the banks on
bond security or calling in the loans Of
such funds In 1873, the government did
not attempt to purchase bonds to relieve
the market until the latter had reached
the breaking point. In time like that,
it is the restora ton of confidence which
is needed and loss Of confidence is not
restored by withdrawing funds from cir
culation. Confidence must be restored as
soon as possible. Our methods are pal
pably defective. They were so In 1898,
as well as in 1873. At best clearing
house certificates issued in emergencies,
have accomplished the real, tangible re-
lief In certain localities. They are with
drawn and Cancelled after the necessity
passes. The salutary principle Is recog-
nized in time of severe stringency, but
the very men who have reaped advantage
from it are often found fighting it, wher
it Is proposed as banking featur to meet
emergency. The conference at Oyster
Bay is considering the subject. They dc
not want to favor asset currency because
the west is supposed to antagonize 1T
The issue of clearing house certificates l.
utilization of asset currency.
The program Of the conference Is indd
cative Of desire to get at the larges
range of opinion on the subject Of elias
tic currency. Unless this Is accom-
.plished the committee will fail A bill
to receive united republican support mus
possess, in the first place, practical com
mon sense, business common sense. TIL
experience of other nations cannot be ig
nored. We can draw valuable and whole
some hints from Europe's admirable sys
tenn of emergency issues The senator
have already found themselves obliged t
take these into considera ton, for the rea
son that they are undeniably safe an
practicable and efficacious. In finance W
want to do business in the best and safes
and most effcacious way, as we do i
everything else. Getting together on
financial proposition is with us an opera
ton of tremendous difficulty. There
even a gap to be filed yet in the gol
standard law.