Omaha daily bee., 1906-12-09

stock may vanish as it did i'm 1884, Es-
1eciauy may this De the case II it is sub
iected 20 the increased burden PROPOSED
and In that case all the benefits the
country has believed 81 achieved by the vic
tory q the gold standard would be put tn
Jeopardy.
The magnitude Of our present stock OF
money is the wonder Of the world. both for
volume and per capita. Compared with
Great Britain. the only country with which
we ought 20 be compared. and the con-
trast is amazing 4 few extracts from
an criticize published In the New York
Bankers magazine for October by an able
English writer will be pertinent in this
connection. lie says:
Many people both in London and New
York seem to dream all the time OF elastic
currencIes tmeaning in reality a constantly
expanding currency. elastic credit and
elastic bank deposits. Give them few
million s0verelgns Of American elgles as
basis, and they will build up on IL pyra-
mlds uf paper wealth. The boldest pyra-
mid builder may be the kesnest buyer Of
gold simply because he has most need
Of IT,
II money. metallic or paper. or both
combined. could make a people happy. the
Americans ought TO be the envy Of the
world They have the largest quantity as
well as the greatest variety OF H. The only
nation which might presume TO compare
itself with them as regards plethora Of
paper is the neighboring republic OF Colon
bia, whose paper dollars run up into hun
dreds Of millions. At the same time the
United States. while eclipsing Colombia on
soft money. can beat France itself on
hard money It is the one and only pos
SCISSOR Of a s3,O00.OOO,OO0 currency-quite
unique distinction in commercial history.
eat the nearest available date to July
l. 1906, the circulation Of the United
Kingdom was. in round numbers, one hun
dred and fifty millions slcrling-less than
one-fourth Of the stock of money which
the Americans find so inadequate and in
elastic
THE comparative volumes OF the two
currencies. British and American, are ir-
reconciliable on any theory Of the rela-
tive amounts Of work they have 70 do.
The only ground on which the Americans
might claim a larger circulation than ours
is that they number 100000 against our
~ 10000 In every other respect the
advantage IS with US Our foreign trade
as a whole, that is imports and exports
combined. is still 40 per cent larger than
theirs.
we come now TO the final and crown
ing PARADOX in this series Of contrasts
between new currency system and an
old one. The new one which, 20 far as
its stock Of money is concerned, ought TO
he much the stronger Of the two, draws
most frequently and systematically on
the foreign money markets
It is asserted that there is no intention
to initiate the currency--thAt the plan is
only to provide elasticity to our existing
money. But there is no proposal to retire
a single dollar Of this money as the other
is issued.
II is true that the proposed bill limits
:he amount Of notes 10 the capital stock,
which is the volume now authorized, for
notes secured by bonds
This limit has never been reaChed-for
the reason that the bonds cannot be had
or will cost too much TO make IL profit
able The average now is said to be about
62h per cent 1t is proposed to issue the
remaining S73A per cent in unsecured
notes.
The imperative necessity for this issue
IS said TO occur in the fall when II is
claimed a critical condition frequently ex-
lists by reason Of the demand upon New
York for money 10 move the crops. The
impression Is actually sought to be con
veyed that notwithstanding our immense
money stock a sufficient quantity of fl
cannot be had TO finance an ordinary trade
movement.
That there is water. water everywher'
and not a drop TO drink" II this is true
the Lublic is certainly interested, and es
peciaily the agricultural producers who's,
crops must be moved.
This extraordinary demand in the fal
has been so constantly asserted that i
may be hazardous TO interpose a doubt
stiu there are facts 10 the contrary whicl
think deserve consideration.
Years ago a large amount Of currenc
was certainly required in this section G
. the country in crop moving times. But hi
has not been the case in late years, and
believe the statistics Of the express CON
panies would confirm the assertion Nor
4 currency than usual may be needed, bJ
y 10 no large extert II is a period whe
= there is a hardening Of money rates ever!
I where, from the fact that merchants an
= manufacturers then make their arrang
= ments for the coming year, and cattle fee,
a ers and grain storers need money to carr
a on their operations. Eat TO satisfy the:
?, ordinary requirements actual currency
e not demanded.
= The reason for this change in the Gu
h rency demand is apparent and what h'
= occurred here has happened almost ever
e where else More currency was needt
y when banks were not so numerous as no
d and trust in them not 50 great Checks