The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-03-21


try, though in the financial CIRCLES
of New York it is considered an i'm
portant measure. During the break
in the stocks no reference has been
made to the Aldrich bill. showing the
decline has not been due so much TO
financial conditions as ii has been
due to the revelations concerning the
general conduct of the railroads.
The bill provides for the issue of
gold certificates and greenbacks of a
less denomination than at present al
lowed. This is said to be in response
to a deman dfrom the west for small
bills at harvest time Farmers COM
planned that it was impossible TO pay
off labor with $40 and $40 bills. the
only denominations to he had of To-
cal banks. This ought to have called
for the use OF So gold pieces and sill
yer dollars. putting these metals into
circulation. but so accustomed have
our people grown to the Use of pa
per money that when it is as good as
gold they prefer tito gold
The second provision authorizes
the government TO accept as eollater-
al for deposits other bonds than gov
eminent bonds.
Heretofore banks securing govern
ment deposits had to put up govern
ment bonds as security. This redue-
ed the amount of bonds available for
the use of other banks seeking to en-
large their circulation. BY substitute
ing Just as good collateral for the
government deposits government
bonds can be released and utilized
for the purpose Of decreasing national
bank circulation.
The secretary of the treasury in
1902 gave to the Law the interpreted
ton authorizing this substitution. He
was severely criticised and il has
been doubtful if his successor would
nut the same Interpretation upon the
law. To avoid further concern on
that point this new law definitely au-
thorizes a transactiun that was per-
fectly safe, the effect of which is To
give greater elasticity to the cur
rency.
Heretofore the government has de
posted with the banks only the re-
ceipts from internal taxes. The Gus
toms receipts were payable IN gold
and the government held this special
gold fund for the redemption of its
own gold obligation. Now that all
obligations are payable in gold there
is no necessity for this distinction
yet the government has bee neompell-
ed to accumulate all the revenues
from customs in its vaults and when
the receipts exceed the expenditures
it has TO this extent contracted the
currency, unwisely and unnecessari-
". Hereafter the customs receipts /.
will he deposited with the banks with
the collateral required for other de-
posts.
Another feature of the Aldrich bill I
is that it changes the present law
concerning the retirement in any one i
month of national pank notes. 1t /
was supposed that this limitation of
S3,000.000 month for the retire
ment OF national bank notes would .
prevent the contraction of the cur
rency; it has had the opposite effect. |
Banks will not take ont emergency I
currency because they are not permit
ted to retire il when the emergency
passes. Under the Aldrich law the
amount they may retire is raised
from s3,000,000 to 100000 This
gives them greater latitude and it is
believed that when the money mar
let is tight-that is, when there is
not sufficient currency to meet the 4
demands of trade-the banks will /,
more readily enlarge their issue.
When the stringency passe sthey may
curtail it,
These are the main provisions of /,
the Aldrich bill and the only legisla
ton OF the late congress affecting the
currency. On the whole they seem
TO be satisfactory they give elastic
ity to the currency without in any
manner impairing its stability.