The independent. [volume] (Lincoln, Neb.) 1902-1907, 1906-02-01
Elasticity in the Currency

Elasticity in the Currency
Paulio, Hawaii, Jan. 9.-To the Editor of The
Independent: The president in his late message
to congress said
In my message of December g. 1902 to the
congress, | said: Interest rates are a potent
factor in business activity and in order that these
may be equazed to meet the varying needs of
the and of widely separated communi-
ties, and to prevent the recurrence of financial
stringencies which injuriousy affect legitimate
business, 1t is necessary that there should be an
element of elasticity in our monetary system
Banks are the natural servants of commerce, and
upon them should be placed as far as practicable
the burden OF furnishing and maintaining a cir
cuatlon adequate to supply the needs of our
diversified industries and our domestic and for
elSn commerce, and the issue of this should be
so regulated that sufficient supply should be
always available for the business interests of the
country"
TO the above We say amen. But how it is
" NC aohe the president has made no suggestion,
leaFhlg us 10 oelleve it can be done by our pres
ent private banks, if congress will help them.
assert without any fear of being mistaken
that those great, good and important recommend
atlons OF our president cannot be made available
by or with our present private banks without
graft ROBBERY. | will also assert, without any
rear OF belng mistaken, that every item demand
ed by the president could be impaired to the in
dustrles OF our country Justly and effectively
without thought of graft robbery by and through
the administration of a system of government
a w
fich and poor, to be the money power thew he
ing the owners of this the richest most power
iui ana important money system on earth it he
ing owned by SO.O0o000 people and backed bv
s ,pS ninety billions OF wealth. This banking
uepartment-aS it should be called-shon,d be
organized with parent bank at the seat of pov
eminent with president vice president and hank
attorney as its directors and the nostofioo 81
every county seat in every state and territory
OF this country should be advanced to the dgnity
a and; ~
MADE president of the bank as well as postmaster
ana MS salary increased to pay for his evtra
labor and responsibility
~ course the loans of this department are
pupiic money made OF gold and silver coined unon
a ratio OF l6 to / and government hankino FL az
pai lnehl notes, all a full legal tender for ali do
ihestc purposes for which money is ueod IVA =;
lodhed by the banks to the administration ~
states, 10 counties, to municipalities tn banlons
TO farmers, to merchants to cornorations ~ -
every cltlzen demanding It and furnishes tho W
M, , eu security, such as government state mimic
tpai ana county bonds, and gold and silver hn1I;on
att PEI cent oI tnelr market value and real
estate at one-haf of it's taxable value for on
interest OF three per cent per annum interest ,
aple haf yearly in advance '' pay
foI ms banking department would be the monav.
n osa ~ lor our whole country, from which all
couia draw upon the same terms NV nrasent; 81
me required security whether living in Naw w,
aiaeha vi any other part of the country Tboro
cdnhol De much complication. nor will tha ov
p ana pe DIS great as some think in organizina
" ,,a administering this banking department as
,,r ucn OF the business is running in the treas
han i1partnent and would be transferred to this
h is departments, besides this denartmant
pays us own way whether its expense ba MIL
ravar I.,e' ana IN addition will yield millions Of
leNenue yearly for government use which NO OH
br s 80 department has ever done, and
o ~ us reduction of interest we are fold 90 Inv u
SV ~ VIII be saved yearly 10 tha woaIth
If if se producers OF our country and prevent as
~ "9ulu' an future money panics and imnart 10
our president "e suggested by
None of these government banks can ovor 10