The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-12-05


currency into our sodden mass OF
bond secured banknote circulation,
which never responds 20 the varying
conditions OF commerce because not
directly related To the business OF
the country, we have made bad
condition worse. Think OF pushing
farther a principle CT currency es-
pansion which, although our business
was constantly expanding from. 1852
TO 1891. fell from s3a2, 900, 600 In 1891
to sl25, 900. 600 In 1891. whyY Simply
because Ii was Improbable 10 hold
the bonds for that purpose. Aye,
principle which has proved It's utter
lack OF adaptation TO our needs since
1891 by showing an actual contrac-
ton during the fall OF many OF the
Intervening years and an actual ex-
pansion during the spring months of
many Others.
Again, we shall find when the re-
action comes and the changed condi-
tion Is reflected In our reserves. be-
ginning about.tbe fifteenth OF Janu-
AIRY, II not earlier, and increasing
rapidly during the spring months un-
It'll the reserves In our banks will
probably exceed those of any proceed
ing year since lsOo--that this very
$3.50, 900, 900, UNFORTUNATELY the In
creased debt shall be converted into
bank notes, that these bank notes
will not disappear and be automatic
ally retired; but that they will find i
place In the reserves OF the stat,
banks, In the reserves OF tile trus
companies and TO some extent
though they have no right therein
, the reserves OF the national banks
Now, mark this. That every banl
note held as reserve will displac
, Just that amount of gold and drive 1
out OF the country. This Is just wha
, our silver purchase did from 1879 L
1891. The poorer money always Ia
and invariably will drive out the bet
ter. There will be upward Of on
, per cent profit la the circulation TAX
, en- out on these bonds and so Tn
banks will force them out PERSISTENT
and the counterpart will be tina
noiselessly, imperceptibly. but wit
absolute certainty, the gold will Civ
, place to the bond-secured note To th
4 extent that 1t finds It's way into tn
, reserves Of the various financial II
J. stitutions OF the country.
h During the next few months 20
will note this striking contrast b'
tween these bond-secuied notes an
the credit currency expressed
:, clearing-ho certificates and casl
iers' checks that while the bon,
secured notes will remain to perpi,
and curse us In the future hY n,
a contracting to the extent OF sing
:. dollar from January to July, eve
:, single dollar of credit currency In Il
:, form OF clearing house certitlcat
and cashiers checks, which ha
. come into existence naturally with
:. great urgent need, will dlsappe
" when they are required no longer.
=, Today we have $3.50, 00o, 200 In t
"a banks and therefore by any fair
ference or construction Of the statu'
~ the sale OF these certificates is 4
. lawful.
AL Again. am not aware OF "A
nix statute by which they can he ct
he strued to be lawful basis for la
nd note circulation. However this ~
be, the most unfortunate incidel
,r- to my mind, is tie fact that they
Ter TO be printed In the size of our pr
nix ent bank bills and coin certifica
,r- evidently with the intent aud p
IS, pose that they would circulate
H.. currency.
nd Under the circumstances, ass
ed that the action OF the administ
al tion was certainly surprising 10 q
one who was at all familiar with
nm banking situation on Friday, Move
,en Der Is, considering the fact that
in government had $40, 900, 600 In C
,gs on hand and would not have
tor more TO speak Of Immediately al
is the bonds were sold. II was certaI
.ial extraordinary. IL was unwarran
al 4 In increasing the national inter
law bearing debt $3.50, 900, 900 and, II
mr. most unfortunate from every poin
view, especially economically.
he believe that the effect Is DO
en-. to be disturbing 10 the banking (
az ditions, because the transaction
mi. forced one and has no direct rela
NJ to the commerce Of the country
mis-. did the imports OF gold on the par
f. the banks, as this operation was
osi. lated 10 or coming exports an,
strictly business transaction.
nall All confident that the effect u
hon the situation will be most disast
,ipp economically.
nds For the honor OF the gOyernm
AN. but more particularly and especl
.i,o for the welfare OF the whole couD
ical sincerely1hope that not sing
per cent certificate will be is'
Zoos now, and that the administra
the will have the courage and patriot
M, to withdraw the offer OF the si00,(
ions 600, per cent certificates imD
ately. thereby relieving the pre-