Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-15
THE ONE THING NECESSARY.

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The discussion now going on al
over the country IN regard to finan
cial matters shows very clearly thai 4
large part OF the time Of the coming
session Of congres Is likely to be con.
sumed Ia the consideration OF a null.
tltude Of schemes for the enlargement
Of the volume OF improvement Of the
character Of the currency OF the coun-
try-and all that time we believe viii
be wasted. Congress viii be treat
Ing the patient for the wrong disease.
such work viii be merely an attempt
TO prevent the result without remov-
ing the cause. and In the nature Of
things such efforts must Inevitably
end in failure.
A greater volume of currency
would. OF course. help TO tide US over
such an emergency as the present, but
u would only be a comparatively
short time tn we would have 10 pro-
vide another greater volume to meet
another like emergency. n SO on in
definitely, In an attempt to find the
end OF an endless chain.
What the country needs is not a
greater volume OF money. but a
greater volume OF confidence in the
reservoirs that hold the money. The
people have absolute confidence In the
bills issued by Tho national banks.
because the governmen of the United
States Is behind them Now amend
The law IN such manner as to give the
people equal confidence that their de-
posts In the national banks are equal
~ secure. and then there win be no
necessity for any further tinkering
with the currency. The elasticity.
which Is talked SO much about, Is. not
needed In the currency. but II is need
ed, and greatly needed. In the deposit
taries. The financial doctors are put
ting the plaster on the sound leg.
The aggregate issues of the ma
tional banks, together with the coin
In circulation. make a volume Of sur
rency amply sufficient to do the BUSH
ness OF the country, so long as Il can
be kept In circulation. the deficiency
only occurs when the people get
frightened and take Il out OF cireu-
latlon, As a matter OF fact, only o
very infinltcsimai fraction ~ the
eountry's business Is transacted with
actual currency. nearly everything Is
done with checks, and the value Of the
check Is entirely a matter OF conf
dencc. " you have confidence In the
bank YOU deposit the check To your
credit. and not a dollar Of currency
passes In the transaction, but II you
have doubts you call for the currency
on thc check. and put that somewhere
else. mus assisting by that much in
driving the bank to the wall-not be-
cause YOU need the currency. but be-
cause you are short on confidence. aud
no matter how much elasticity the
currency may have. the failure OF the
bank is only a question of how many
Of rs customers may be short on the
same line.
our so-calied national banks are
only national in part They are vast
is better than the old wildcat"
banks which they succeeded. hut thcy .
are only half a. good as they ought
10 be. How 10 rectify this half evil
aud make our banks entirely good. r.
the question that shouid nov occupy
the attention OF our financial doctors.
to the exclusion " an quack remedies
Aud the best and easiest way TO find
out how this can be done l. 60 take
"a few lessons from Great Britain. The
Bsnk OF England has been the heart
Of the financial system Of that coun-
Try for some centuries aud during all
the time OF IT, existence there has not
a financial crisis there. and yet
experience ach troubles under
our system us regularly as the changes
% the seasons. though not quite az
often. Then why not profit by the
experience OF our neighbors across the s
and adopt the same SYSTEM !
We don't need to be squeamish about
the matter. because England had q
first. We took the language Of The
country and seem 70 be get !
ling along with IL very well why I,
We take her banking sys- !.
lem N Amsricanize o. Just the :
samef J