The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1906-12-28
MONEY REFORM AGAIN.

The house committee on banking
and currency has decided to make ia.
vorable report on an elastic currency
bill but slightly different from that rec
commended by the bankers committee.
Secretary Shaw, meanwhile, has been
down in New York and has announced
that he will take measures to tide the
stringency until the middle of next
month, at least. Congress might do
well, before passing such q measure,
to consult the needs of the west. Ne
braska bankers have expressed their
objection to such procedure and 1t Is
plainly against the interests of the
west and for the interests Of Wall
street that such action Is being sought
by the east. What becomes particular.
ly offensive to the west is the contin-
ued statement, even in eastern mag
partial, that the stringency arises
when the west wants to borrow mon
ey with which to move the crops"
AS a matter of fact the west is not
wanting to borrow money. The west
has been loaning money to the east
all summer and the east can't be
weened away from it's superfluous
cash. The money belongs to the west.
All the west asks is that the east send
back what belongs to us. When the
panic of 1898 came along and wiped
out the west because the eastern
banker called for his money he had
loaned out here, there was no clamor
to force the government into a ficti-
tious currency reform to help us out.
The east allowed us to suffer along as
turned the trick and the shoe is
pinching down near the Manhattan end
of the boot. And pressure is brought
to bear upon congress to pass an emer-
gency bill that will allow the New
York bankers to issue more money
than they have, for the purpose of pay
ing off their debts.
1t strikes many as highly ridiculous
that the east should call this relief,
since it is only going deeper into debt
1t used to be a populistic theory that
the government, instead of paying in.
terest on its debts in foreign lands
ought to issue false or elastic" cur
rency, If you will, sell it to local tax.
payers and save the interest. 1t was
argued that no security in the shape
of gold was essential, since a govern.
ments stability rested primarily upon
the governments ability to raise taxes
anyway, so that an assessment upon
the people was enough for security.
1t looks as If the new elastic cur.
rency idea were but the same old pop
ulistic idea in new clothes. Bryan
wanted elastic currency with silver as
a security, at stretched valuation, and
he was labelled dangerous. Now con.
gress is seriously considering a very
much more dangerous move.
1t has been suggested to The News
by one prominent Nebraska banker
that good remedy for this so-called
stringency, would be to shut down the
payment of interest on deposit by
banks, In which case, it was argued
the western banks would have no need
for getting interest on their idle funds
in the summer, would not be forced
to loan to New York, and would not
create a stringency, therefore, when
the crops began to move, by asking
back those deposits.
Western congressman will oppose
the measure in congress. For the
sake of sterling stability in the cur.
rency system of this country, and in
order to calm down speculation rather
than to encourage it, it is to be hoped
that the measure will fail.