The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-11-22

| what should be done. Bankers in
| conventions for the last quarter of a
century, have adopted resolutions, on
this subject, and requested congress
to aet-but action has been impossi-
Bile. For our senators and representa-
| tives come from all over the United
States, and unfortunately pure bus
mess question has become a political
!. question, as every business question
will do when it is to be determined by
| political action.
Over a very large portion of the
! United States. probably portion.
which contains the larger political
power, there is and has been since the
| issue of the greenback currency, a.
political belief that the federal gov
eminent should issue its promises TO
| pay, and by legislation, declare such
| promises to be good legal tender dol
lars. According to this belief. the
United States, and not the banks.
should have the profit Of promissory
note currency. National banks used
to furnish the same sort of political
capital, that the railroad rebate does
now.
1t was held up to public legislation
that the United States should paw in
| terest to national bank, on the bond
deposited to secure the CURRENCY.
While the banks should also draw in
treest from the public for the use of
the currency
On the other side the commercial
states have truly said, that the con-
tinued issue of government fiat money.
would drive gold out of circulation.
and SO derange the standard of value
and produce infinite distress to all of
us-and severe financial crises, when
this issue has been UP for decision,
have demonstrated to such CONNER
cial states, that their view is correct.
But fiat" money has never been
dead and whenever the reform of the
currency has been before congress
this old powerful idea has blocked
legislation,
Whether it will do so, in the com
ing congress remains to be seen.
The issue of fifty millions of Pana-
ma Canal per cent. bonds and 100
millions of 8 per cent. certificates Of
Indebtedness in order to relieve the
currency trouble will bring out the
old antagonisnls on the currency
question.
On the face of it, this issue is extra
ordinarily wonderful.
The United States has on deposit
in various banks, some 240 millions
and working balance in it's own
treasury of several millions. There
is no need whatever for the United
States, at the present time to borrow
$50 millions, except to increase the
circulation.
The disease may be, as Mr.. Roose-
welt says, simply in the Imagination.
We hope so. But for simple dis
, ease of the imagination the remedy
is strangely heroic.
The United States is to pay in the
course of the year four millions of
dollars, interest on borrowed money,
which it does not want, and which 1t
intends to leave on deposit with the
lenders, and without interest. The
lender is to receive $50 millions of
new currency, which will be put for
good considerations into the circula-
ton, but which of course will yield a
good rate of interest.
In other words the lender is to have
the use Of the money lent Cess the rs
per cent reserve against the deposit)
some 10 millions and the use of $50
millions of new currency, at cost to
the government of four millions of
dollars.
The difficulty about this scheme, is
that the lender has to put up first
class collateral for the $50 millions to
remain on deposit, and II may be that
he has not and cannot get the COL
lateral
Still it is to be hoped that the
scheme will work and that the none
tary stringency will vanish under the
magic Of the "big stick"
Still, my friends, here you have
specimen of the inoapacity of the
United States, to manage, control,
regulate and restrain the currency
business, and in my opinion, you will
find the incapaeity more manifest,
when congress attempts to act
You will also find concerning The
proposed management of interstate
industrial corporate business, similar
political differences of views and be-
liefs, in various parts of the country,
and that the dominant political power
is from states which are either indif-
ferent or hostile to, or out of SYM
pathy with corporate business.
Indeed the whole Rooseveltian at
wealth
1t may be that the business corpora
lions in this city, engaged in business
with New York for example, are de-
sirous Of submitting their business to
the control, regulation and restraint
of congress, after the fashion of this
McCumber act, or of some other
Time will tell Meanwhile there is
little satisfaction, in trying to cali
their attention to what Is proposed to
be done, and masking them to reflect,
how unsuccessfully the government
has managed the bank currency bust
ness which is public matter and to
consider that equal failure will prob
ably attend this new effort of the
government to control, regulate and
restrain private interstate corporate
business. Why? What is the mischief
of the present situation? Let some
one tell. Mr.. Roosevelt does not speci-
fly, nor explain He wants the pow
err, mainly because he thinks he ought
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