The Butler weekly times. (Butler, Mo.) 1881-1918, 1907-12-19
Too Much For Horace White,

Mr. Cortelyou's finsnciering is too
much for Horace White. Ii will be
remembered that Mr.. White was at
one time editor OF the New York
Evening Post and was conspic-
uous as a champion OF the single
gold standard in 1896: Writing 30
the editor Of the Evening Post MIR.
White says:
Permit me to say that concur In
your criticism of the action OF the
treasury department In issuing a lot
Of three per cent certificates Of In.
debtedness at this iuncture, and to
add that the objections are equally
valid against Issuing Panama canal
bonds. Both are schemes to borrow
money from she public at interest in
order to lend is 80 banks without in
terest, at a time when the govern.
ment already has S240,156,431
(minus small working bslance) al.
ready loaned In she same way.s There
Is no pretense that either class OF
obligationsi put out TO obtain mon
ey for any governmental purpose.
The ayowed purpose is TO relieve
the money pinch. You have shown
that the money pinch was already
relaxing, as indicated by the decline
In the premiums on currency, both
here and In Chicago. You have
pointed out how the premiums on
currency relaxed and disappeared
without government interference in
1898. You have argued truly that
the treasury department, by "butt-
ing in" at this iuncture, deprives
the public OF those lessons In prud.
ence and seli-dependence which are
greatly needed as helps to ward of
like calamities hereafter.
Ii seems to me that something
more might useiully be said In the
way Of pointing out the real nature
OF the action taken at Washington.
Mr.. Cortelyou with much simplicity,
begins by saying that he has already
placed more than $2OO,OOO,OOO In
the banks. Upon this money the
depository banks are receiving rates
OF interest varying from six to thirty
per cent. II We take the lowest fig
ure the income from this source Il
$12,000,000; but 1t is much more
because, being legal tender money II
can be counted as cash reserves
forming the basis Of loans at thu
rate OF 81 OF discounts to 81 OF cash
1t may be assumed that the prof
derivable from these government
depositsi Is at the rate OF $50, 900, 00(
per annum in the aggregate. Now
Mr.. Cortelyou comes forward In ,
breathless way and says to the PEG
pie, and President Roosevelt echoe
him for vice-verss): 81 have ex
hausted my means for loaning none,
to the banks free of interest. l cal
not place another cent there excep
by borrowing. Congress has givel
me only two resources In the way Q
loans, both designed for quite differ
ent purposes-one for digging th
Panama canal, the other for the wa
with Spain. l will try both, to th
extent OF $50, 100000, II necessary
So please buy these securities. l vii
pay you interest at two per cent o.
the Panama bonds, and at three pc
cent on the Spanish war scrip, an,
then | shall be able TO Increase m,
loans to the banks Without interest
Perhaps they will use some OF thes
securities to increase their own cir
culation.
Now II the banks had originate
this system OF government financiel
Ing they might be Justly ciarse
among the hateful trusts, for eve
the Standard Oil gouges the publ
deeper, but they are not censurabl
In this way since the government II
self originated 1t and even now rushe
forward with new millions and hui
: dreds OF millions and presses 1t upo
. the bankers; and, like little JAG
Homer, who sat In corner, el
claims, what a good boy am ~
II were q banker l suppose
should do what they do; that is, a,
cept the free offerings OF generou
government. | do not know VIII
anybody should reject the nugget
L.. - h. laaa-1lo-k