Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1907-01-01

money AhhatAOAAs
The Bankers Association, having
agreed upon a plan for asset currency,
it behooves the balance of us to inquire
into the matter and see we are not
buncoed when Congress takes up finan-
cial legislation The recommendation
of the bankers is that credit bank notes
may be issued by the national banks
equal to 10 per cent of their bond-se-
cured circulation, subject TO tax at
the rate of 21a per cent per annum
upon the average amount outstanding
They also propose that If at any time
in the future the present proportion OF
the outstanding unmatured United
States bonds to the total capitalization
of all existing national banks shall
diminish. then the authorized issue or
credit notes shall be increased to a cor
respondingly greater percentage of its
bond-secured notes"
That would seem to give the banks
the right to issue more than 40 per cent
of extra notes. without security, when
the present United States bonds, upon
which their notes are now secured, shall
become due and those secured notes are
retired or reissued upon bonds raar
have been refunded This would in
dictate there is a colored individual hid
den in the bankers wocdpile
But without taking time to examine
all the details of this proposed issue of
asset currency, the first thing to deter
mine is if more money is needed. Is
there enough money in circulation to do
the business of the country without
further imitation? In 1896, there was
$21.41 per capita in circulation; that
amount is now increased to over So
per capita and tho increased produc-
ton of gold is adding over 81 per an
mum to that amount, while the con-
slant increase of the national bank
currency from the organization of new
banks is another cause of imitation. SO
that with the volume of money III cir
culation increased 80 per cent per cap
tia since 1896 and still increasing year
by year much faster than the growth
of population, the bankers make this
demand for this asset currency on the
plea that more money is needed. The
most competent and impartial political
economists hold that this money infia-
ton, which IS worldwide as far as the
increase in the volume of gold is con-
cerned, is responsible in part for the
great advance in the price of commodi-
ties, measured il gold, to meet and
reciprocate the diminishing purchas-
ing power of gold that is, the guam
titative theory Of money.
AS there is now over S500,000,0C0 of
United States bonds deposited to Sc
cure bank currency, the proposed in
crease by the bankers of 40 per cent of
asset currency would make a further
imitation of over S200000,000. or about
$3.50 per capita. The question of fur
Their infation of the currency, with a
still greater advance in the average
price of everything, measured in gold,
is therefore the first question to be set
tied and the details of whether the
banks shall be granted this further
enormous Increase of circulation with
out giving any security can be settled
later.
1t must certainly appear to everyone
outside of the Wall street interests and
the bankers themselves that the pro
posed asset currency is not needed, for
there is no complaint of too little money
to do the business of the country and
indeed there is abundant evidence that
if the ffenzied financiers and bankers
were moi interested In drawing to New
York money needed elsewhere to loan
on the watered stocks of railroads and
trusts at big interest. there would be
a plethora Of money.
If you feel that this asset currency
bill is against your interest. you should
write to your Senator's and Represen-
tatives and demand that they vote
against the asset currency proposition
on the primary ground that further in
fiation Of the currency is not needed.