The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-02-25
Financial Legislation.

Financial Legislation.
1t is probable that the short time left
for legislation by the fifty con-
gress will leave the Fowler and other cur
sency reform bills unconsidered.
The house yesterday recognized it's
urgent duty and passed the senate bill.
striking out the Patterson clause provid-
ing for an international monetary con-
ference, and in doing so showed very |
sound Judgment, but it is to be feared that
the senate may not accept the ELIMINATE
of this feature. which was introduced to
secure the ready support Of the silver
element in the senate. The latter hope
that the request of Mexico and China, that
the countries doing business with the sill
yer using countries will aid in estab-
fishing stable exchange relation with
them for the advantage Of trade, may be
utilized to get together an international
conference. which will fix rate of ex-
change, with the old bmetallic notion that
an International decree can maintain a
market and coinage ratio between the two
metals. which is an exploded fallacy. The
gold standard in the islands and retains
silver as the chief circulating medium.
with parity insured by limiting the COIN.
age Of silver and providing for it's ex-
change with gold so far as necessary. This
arrangement is about what Mexico and
China both need to prevent fluctuations Of
exchange in dealings with foreign nations.
The Philippine bill, however. should be
passed even with the absurd Patterson
amendment, for it Is morally certain that
Europe will not agree to revolutionary
international conference to make trouble.
The Aldrich currency bill was thought
to have a fair prospect of pa ssage, but 1t
is not likely to go through this late in the
session. 1t provides for the expansion Of
the currency through the substitution of
state, municipal and railway bonds Of the
first class, for government bonds as secur-
ity for treasury funds deposited with the
ma tionals. 1t Is important as a business
measure, for it seems to make impossible
the annual currency shortage in the crop
moving period, through the greater facility
with which the nationals can furnish good
security for the government deposits on
which the interest rate for the govern
ment is to be ~ per cent. 1t also pro
vides for the inclusion of customs re-
ceipts as we'll as internal revenue receipts
In the government deposits with the
banks Objection is made to the measure
chiefly OH the ground that it gives the
secretary Of the treasury greater control
of the money market through the power
given him to select the bonds taken as
security for deposits. 1t is contended that
the secretary can make market for any
bond he wishes to favor, and can precipi-
tate panic at pleasure. This suggests
the little 3-year- old girl, who was found
weeping by her mother, because, she
related, she might some day be married
and have a baby who might fall into the
washboiler of scalding water and be boiled
to DEATH Objection is also made to the
clause which provides that the proposed
issue of Panama canal bonds may be USED
by the banks as security for government
deposits. The canal act provides for pay
ment for the franchise to the Panama
Canal company and to Colombia for RICH
of way out Of available moneys in tn,
treasury, and provides for the issue o
bonds to provide funds for the construc
ton of the canal. The Aldrich bill assume
that bonds are authorized for both casse
of expenditures, which does not seem t
be the case. This clause Of the bill coul
be eliminated without affecting its valu
as business measure.
If this measure fails. 1T IS likely tina
the very able committee appointed by til
president Of the American Bankers asso
citation, in accordance with resolution
adopted at the November meeting, to con
slider and report plan for create
elasticity to our currency system to max
1t responsive to the needs OF business, wi
report a conservative and effective meas
ure which may become the basis Of ma
tional legislation. Our dependent treas
ury system is manifestly anlendable an
It should be subjected to some recon
structiorl in order to meet new require
ments and changed conditions.