The Montgomery advertiser., 1907-11-24

be printed in the size of our present bank bills and coin certificates. evi- dently with the intent and purpose that they would circulate as cur rency. Of course. 1t is clear that in- asmuch as they were to draw interest and be sold to the people and be sold to the people in the form of popular loan 1t was never con- templated to deliver to the buyer a It, tie certificate the size of a five dollar bill. It was to be an investment draw ing interest and therefore In the na- ture of a bond and not a piece of cur rency. If 1t were not for the interest which may and probably will bring about their return in order that the holders may collect interest we should have forced into our circulation $l00.- 900 900 of pure fiat, or greenback cur rency as 1t is being printed in the form of bank bills and nit in form of bond, will not this be actual effect upon the country until they are retired?
 Tt Is stated that the government will not tolerate them as reserve in national bank reserves but the fact that the question has arisen shows the dam ger of It's issuance in this form. AL though a national bank may not be permitted to hold them. will not State bank or trust company seek them, anx-
  part of their reserves in order that they may be earning per cent interest on their reserves instead of nothing as would be the case if they should hold gold. which Is the only true and prop CT reserve for the bank to hold?
 The present experience is only an- other startling instance that ought to warn us to convert our present green backs to gold certificates and teach the present generation and all who come after us that there can be but one hon. est reserve and that in our country is gold coin. because gold is our standard value and therefore gold Is it's own re- deemer."
 Must Oct Normally.
 we must anticipate the possibility in the fture of having a president who. wanting the people to think that he is little father" will some time say. The government will see that the people will not suffer if only the people themselves will act in a nor- mal way But how can any one act normally in these abnormal times? Our national finances must be put in such condition that here can be no mis- understanding, such as the president must have of the situation. For in his letter to the secretary of the treasury he says:
 November 1 4there was in the treasury $904.000. 900 of gold Any of the people might ask him then Why don't you put 1t into the banks instead of increasing the national interest bearing debt of sI50,000, ,000r Of course his answer must be. We'll $150.- 100000 of that is up against the $S46.- 100000 of greenbacks as a reserve. The remaining $750, 900 900 of gold Is prac- tically all in the government ware- house and some of the warehouse re- ceipts of gold certificates are in the Philippines, some in Hawaii Alaska. Porto Rico. and some In Europe and many are in the wheat fields of the North west. the cornfields of the Middle west and in the cotton fields of the South. Therefore a very great part of what said was in the treasury pos sibly all of it, might just as we'll be in the mines of Colorado, California, Alaska and South Africa as where 1t Is
 scould any candid. intelligent and fair-minded man say that he had s90i,- 900. .o00 in the bank to his credit when he knew that there were outstanding against it certified checks to the amount of $904. 4.00o. 900?
 Action Was Surprising.
 Under the circumstances I, assert that the action of the administration was certainly surprising to any one who was at all familiar with the bank ing situation on Friday. November 14, that considering the fact that the gov ernment had 40.0oo.oo0 of cash on hand and would not have any more to speak of Immediately after the bonds were sold; 1t was certainly extraordi- nary that 1t was unwarranted in in- creasing the national interest bearing debt $I50, 0,000.0 900; and that 1t was un- fortunate from every point of view, es- economically.
 q believe that the effect is bound to be disturbing to the banking condition because the transaction Is a forced one and has no direct relation to the com merce of the country as did the import of gold on the part of the banks. as this operation was related to our com ing export and strictly business