Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1903-10-30
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The Aiirieh bill. backed d, the Rock
s~fellens, vii perhaps not ,e pushed to- a
vote in the coming coccus The Re-
publican leaders know iha. such ie.is.
latioh Is unpopular ard Wiil postpone
the bin until after the national election.
The same course will also Ge followed
with the asset currency Fowler ILL. and
for the same reason. IL the Democrats
carry the next national election, these
two bills Will lever more be heard OF.
for both are entirely at vRriance with
Democratic ideas of finance.
The Aldlch hill proposes TO loan to
the banks the surplus money IL the
treasury at a low rate OF interest, which
the banks Will lean to ;he people at a
high rate Of interest. The most oGncx
ious result Of the pyssaS- of such a
measure would br that, the banks would
constant! I've the champions Of high
taxation. The more taxes collected
from the people. the larger the surplus
and The greater amount of cheap money
the banks would get.
The Democrats wouii reverse the
proposition by reducing iaxes. the tariff,
and oaly collect enough taxes to run the
government honestly administered.
The Eatioual banks RON have over si65,
000,00O Of the surplus aud the admins
trat:on Is continually Increasing the
mount. Tie hunks arr Crying for more
rs well they may, toF /; costs them moth.
ing and Ics re is greH: doubti il they will
ever repay what they now have. The
reason for this is Il simple one, for banks
are unlike Individuals, ii is almost i'm
possible TO make them pay Ia, ir debts
10 the government II :hey dent want
Treasury or any future Secretary should
demand from these favored banks the
money that has been deposited with
them, they world declare tia; 10 repay
it would bring en- q panic. The banks
have loaned this vast sum To- the stock
brokers and others With railroad and
trust stock % collateral and It wonli re-
qu'T5 ;he calling IN Of these loans, that j.,
the payment by the stonli brokers and
others--Eud this they could not 90 IN.
less they should be able to borrow a
similar amount elsewhere. II these
borrowers OF the bank c1uId not pay
when called Or, the collateral would be
sold and forced sales Of this character
are pretty sure 10 reduce the market
price Of the stock sold and thus inaugu.
rate Il panic There is another provision
i'll the Aljrich till thai; the banks are
anxious 10 accomplish. Tie law now re.
| quirts that United States bonds shall be
deposited with the United States treas
uFy for these loans and the bill provides
that other security may be taken in
place Of the bonds. Sccrctrey Shaw
has disrcgnFdcd the lnr ana in making
recent loans TO the banks he has been
taken other security. The intention Of
the law was that all loans .dcplEits-
should be secured hy United States
bonds, so that no less could ever occur.
1t is unlikely that United States bonds
will go below par, but railroad and other
bonds and stock might depreciatr far
bC4O" VIC 81 per ecu ~ ittIF lace NRIuc
that is the requirements Mt p, sent.
The assct currency bill is hardly like
ly to he pushed at tir coming Congress,
but it's principal provision is to allow
the banks to issL their notes without
any security, 9th, than the general as.
sets of the banks, 10 IN amOnni equal to
their capital stock. Srch an imitation
Of the currency g. country would result
in keeping up prices and might lead to
n ]scrious lose to the government il 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 ana profitable
TO the banks, hut the Fowler bill is not
so regarded.
The Democrats will oppose any h!u
that favors the buuks Ut the expense of
the people and it will be well for voters
10 qucstion their Representatives on
their position on this important qucs,
ton.