The Caucasian. (Shreveport, La.) 1900-192?, 1907-11-12
is 1T A CONSPIRACY?
Is the Asset Currency Scheme Suggest
ed from the Money Centers?

scheme says:
There is such similarity between the
editorials in the city dailies demanding
an asset currency as to suggest that the
editorials are written in response to
suggestion from the money centers.
The big fnanciers have either brought
on the present strlngency to compel the
government to authorize an asset cur
rency or they have promptly taken adj
vantage of 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 a perpetual
debt or the bank notes would have
some other basis" The "some other
basis referred to is the asset basis.
When it became apparent that the pub
lie would not tolerate an asset currency
the financiers asked for an emergency
currency based on assets This was only
subterfuge and the Republican lea 'ers
were afraind to press it at the last ses-
sion. Now it is to be brought forward
as if it were new remedy, just thought
of as a panic cure 1t is a panic breeder
instead of panacea it would aggravate
rather than relieve the situation. It
would increase the banks liabilities Just
at 2 rim. when depositors are fearful
that the bank can not meet present La
hi 5o of al hae
very much exaggerated; if banks would
prepare in advance for moving crops
and for such other future demands as
may be reasonably expected they would
not be confronted by SO many ''emer-
gencies" The trouble is that they loan
to the limit in ordinary times and there
fore have no reserve available for the
unusual demands. Another trouble is
that the banks are encouraged to keep
large part of their reserve in reserve
cities, and therefore shock in any of
the big cities disturbs banking every
where Just now the country banks can
not use their reserves because the big
city banks will not allow deposits to be
withdrawn.
When the same money is counted
over in the reserves of several banks
the withdrawal of one thousand dollars
results in sfrinkage of several times that
sum.
The Democrats should be on their
guard and resist this concerted demand
for an asset currency. 1t 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 government and not by the banks.
The government could furnish certain
amount of elasticity by increasing and
decreasing government deposits accord
ing to the needs of business; or it could
provide for the temporary issue OF
treasury notes on government bonds
whenever a holder of bonds is willing
to surrender the interest; or it could
issue treasury notes in any emergency
But none of these plans will suit the
hnanciers; 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 asset currency in
whatever form it may appear. They may
also have to oppose the great central
bank, which is a part of the scheme of
the hnanciers. And they will find that
the same influences 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 in
crease its hold upon the government.
What we need just now is not an
emergency currency but greater security
for depositors. The depositors are
scared-mnecessarily in most cases
but scared. The government is going to
recommend a postal savings bank, but
according to press dispatches deposits
will not be accepted in excess of two
hundred and fifty dollars from any one
person. This is good as far as it goes,
but it does not go far enough. All bank
depositors should be made to feel secure
and they could be made to feel secure
by guarantee fund raised by small
tax upon deposits. When depositors feel
sure of their money they will not care
to withdraw it, and the money which
will be drawn from hiding places would
more than repay the banks for the small
tax necessary.
The first thing is to release the publ,
from the grip of Wall street and then
when the stock gamblers have to suffer
for their own sins instead of unloading
them on the general public we may ex-
pect legislation in the interest of the