The Washington times., 1906-01-08
Monetary System Elastic.

Al present the elasticity Of our none
taTy system, he said is at fault in that
II does not conform with the demands
of trade. By elasticity. he said was
meant that money should be available
or accessible when and where trade con-
ditions would demand.
The more trade We had the more
money necessarily is required TO carry
that trade on OF 10 stimulate it should
il show signs of weakening
one of the greatest troubles incident
Ia reignS OF periods OF prosperity he
pointed out Were that this country
would be elevated TO the highest PIN
nacle Of success and then left strand
ed. high and dry. for the want Of
available cash TO tide il over a period
of stringency on the money market.
When the period of stringency in
money markets had been passed and
the distribution of money had become
normal again the national banks that
fioated the issue could then begin to call
IN their issue and the trade would not
experience the slightest difficulty in
keeping abreast of the demands
Opinions cf Prominent Bankers.
Charles J. Bell. president of N
American Security aud Trust Compai Y
IN discussing the conditions voiced ~
Jacob II. Schid and concurred in bv ex-
Secretary Of the Treasury Lyman j.
Gage, said. I think Congress should
legisiate 20 correct the evils of the non
elasticity Of our currency. The plan of
issuing an extra amount of bank notes
without Federal security, 10 tide the.
trade over periods Of depression in the
money markets Is a practicable and !.
most get-ar-ablc plan.
Such a plan would serve to eliminate
any Cause Tor Il panic that would prob
ably result II the conditions that are
understood 90 have been felt in Wall
Street recently are TO he regular occur
FENCES. The question is a scientific one
ano one ] consider should be urged up-
On Congress even in preference 10 rail-
way rate or any other legislation"
Question of the Hour.
e. Southard Parker. president OF the
National Metropolitan Citizens Bank.
said the question was too deep and in
vowed 10 discuss in thoroughness with
out having been given careful study.
He indicated. however. that the is
suanee OF money by national banks ON
10 per cent tax plan. would be an
easy way ont OF trouble that brewed for
short periods. Such a plan. however. if
the periods OF stringency in the money
market were Of long duration would he
minated, be probably too expensive.
in that a per cent tax was rather a
high rate of interest 20 be carried on
for a lenthy period.
Plenty of Money in Circulation.
1t is not q question. Mr. Parker claims.
or there not being enough of money In
circulation. but il IS the question Of the
inelasticity OF our currency.
The marketing Of the enormous output
of the farmers and manufacturers is
probably the principal cause of the re-
cent depression in the money centers.
Il cur currency system were more elias
tic, he argued. and could be made to
conform with the demands for trade. II
would be the remedy TO prevent the oc-
eurrences from time 10 time OF such ex-
periences as have Just passed.
No Panic Apprehended.
There is no apparent apprehension felt
that there VIII be a panic in the imme-
date future. he claims. bat some much
NEEDED legislation should be enacted to
obviate possibility of a epettion of the
experiences OF 1893
Bringing il up TO the present, Mr.. Par
ker pointed out TIE quick response made ,
by Chicago bankers i'm coming 10 the
assistance OF the three banks operated /
by John r. Walsh, which, he claimed. |
vas a good illustration that there was
money enough available to .revent a |
crisis arising II IL was proportTonalIy
distributed al all times