Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-11-14
THE ASSET CUR.
RENCY SCHEME
FINANCIAL STRINGENCY Will Be
USED TO URGE IT.
The Scheme Pushed for Years bv the
rrenzied finanCiers, Who Brought
o" the Present Furry, will be
Urged In Congress as a panacea
for PaniCS.

IOT V6UlCS.
There Is such a similarity between
the editorials in the city dailies de.
manding an asset Currency as to sug.
gest that the editorials are written
IN response to a suggestion from the
money centers, says Bryan's Com
moner. The big financiers have
either brought on the present string.
ency to compel the government to au.
thorize an asset currency or they
have promptly taken advantage oi
the panic to urge the scheme which
they have had in mind for years
Several years ago Secretary Shaw
stated that we must either have 9
perpetual debt or the bank note.
would have "some other basis" The
"some other basis" referred to Is the
asset basis. When 1t became apparen,
that the public would not tolerate ar
asset currency the fnanciers asket
for an emergency currency based or
assets. This was only a subterfugt
and the republican leaders were
afraid to press it at the last session
Now 1t is to be brought forward al
If it were new remedy, just thought
of as a panic cure. 1t is a panic
breeder instead of panacea; II
would aggravate rather than relieve
the situation. 1t would increase the
banks liabilities just at time when
depositors are fearful that the bank
can not meet present liabilities. The
need Of elasticity has been very much
exaggerated; if banks would prepare
in advance for moving crops" and
for such other future demands as may
reasonably expected they would not
be confronted by SO many "emergen-
cies." The trouble is that they loan
to the limit in ordinary times and
therefore have no reserve available
for the unusual demands. Another
trouble is that the banks are en-
couraged to keep large part of their
reserve in reserve cities and there
fore shock in any of the big cities
disturbs banking everywhere. Just
now the country banks can not use
their reserves because the big city
banks will not allow deposits to be
When the same money is counted
over and over in the reserves of sew
eral banks the withdrawal of one
thousand dollars results in shrinkage
of several times that sum.
The democrats should be on their
guard and resist this concerted de-
mand for an asset currency. It
would simply increase Wall Streets
control over the nations finances and
that control is tyrannical enough
now. Such elasticity as is necessary
should be controlled by the govern
ment and not by the banks. The gov
ernment could furnish certain
of elasticity by increasing
and decreasing government deposits
to the needs of business;
or it could provide for the temporary
issue of treasury notes on govern
ment bonds whenever a holder of
bonds is willing to surrender the in
terest; or it could issue treasury
notes in any emergency. But none
Of these plans will suit the finan-
ciers; they insist upon absolute con-
troll of the nations finances-they to
reap the advantage while the public
bears the burden and takes the
chances.
But the democrats in the senate
and house are in duty bound to look
at the question from the standpoint
Of the people, and oppose the asset
currency in whatever form it may
appear. They may also have to op-
pose the great central bank, which is
a part of a scheme of the financiers.
And they will find that the same in
fluences which are behind the asset
currency and the central bank are
behind the presidents plan for ma
tional incorporation of railroads.
They are all part of plutocracy's
plan to increase it's hold upon the
What we need just now is not an
currency but greater Sc
curity for depositors. The depositors
are scared-unnecessar scared in
most cases-but scared. The govern
ment is going to recommend postal
fCopt;puo6 IN mao four\