The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-11-07
CURRENCY AND MAKESHIFTS
Saturday Evening POST


ers' Association recommended al
elastic currency system. Since ther
the subject has been discussed
wherever bankers have gathered
and the total output of speeches
resolutions and reports amounts
we Judge, to several long tons. Sc
far as we are able to see, however,
an elastic currency. is no nearer
than it was ten years ago.
With infinite variation in details,
all of the schemes propose that
national banks shall be permitted
to issue circulating notes based upon
their general credit and not, as
now, secured by deposit of govern
ment bonds. In the schemes most
generally favored this unsecured
note issue is subject to stiff tax,
with the idea that thus it would be
resorted to only in times of money
stringency, and called in as soon as
the pinch passed.
All OF these schemes are recog-
nized by those who speak with
most authority as compromises and
makeshifts. Our currency system
is now patchwork comprising a
half dozen kinds Of legal tender
circulating notes. The elastic plan
would put on another patch. Also,
it would place in the hands of
every national bank a power to ex-
pand the currency which admittedly
might, in individual cases, be
abused. The wisest currency-re-
form advocates say this is not the
best solution, but the most exped-
lent one, because congress might
pass an elastic currency bill, but
would not, in view Of popular pre-
judice, adopt the ideal plan Of
central bank Of issue, modelled
upon the German Reichsbank and
the Bank Of France, with a major
ity Of the directors Of such bank
nominated by the government.
We think they are mistaken.
We do not believe there exists any
such popular prejudice as they
allege. On the contrary, the
people, we think, would much
rather lodge the important power
to expand and contract the cur
rency in single institution con-
trolled by the government than
lodge this same important power in
6544 private institutions.
Why not have the best? As this
currency question continues to be
discussed we expect to hear more
Of a government bank and less of
makeshift elastic currency projects.
We note that the Press credits
the Federal company with a divi-
dend Of $40, 900 during October.
We trust the news is true though
the last dividend that we know Of
was one Of $500, 900 declared in
August and paid September Is. In
the natural order the next quarterly
dividend will be declared some
time this month and paid about
December 16.
We like the nerve Of the Spokane
banks calling their clearing house
certificates currency" Since
when was any national bank in
vested with the power to create
currency" at its own sweet will?
If the banks are to issue currency
when they see fit we should like to
see some legislation by demo-
cratic administration governing !
such action.
This new tangled currency is
doubtless necessity, but if so it is
necessity due to republican hard
times.
Schwab on Nevada
Chicago Mining World)
When a man, a self-made Amer
lean millionaire steel manufacturer,
tries his luck as a mine promoter,
with variable success, the specula-
tive fraternity gets busy. For a
time the investing public is hypno-
TIED by the extrayagant newspaper