Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1907-01-02
Money Imitation.

Money Imitation.
The Bankers Association, having
agreed upon a plan for asset currency,
1t behooves the balance of us to inquire
into the matter and see we are not
buncoed when Congress takes up flnan-
cial legislation. The recommendation
of the bankers Is that credit bank notes
may be issued by the national banks
equal to 40 per cent of their bond-se-
cured circulation. subject to tax at
the rate Of 21a per cent per annum
upon the average amount outstanding"
They also propose that: IF at any time
in the future the present proportion Of
the outstanding unmatured United
States bonds to the total capitalization
Of all existing national banks shall
diminish, then the authorized Issue of
credit notes shall be increased to cor.
respondingly greater percentage of It's
bond-secured notes"
That would seem to give the banks
the right to issue more than 40 per cent
of extra notes, without security, when
the present United States bonds, upon
which their notes are now secured, shall
become due and those secured notes are
retired or reissued upon bonds tnat
have been refunded. This would In
dictate there is colored individual hid
den in the bankers wocdpile.
But without taking time to examine
all the details of this proposed issue of
asset currency, the first thing to deter
mine Is II more money is needed. Is
there enough money in circulation to do
the business of the country without
further imitation? In 1896, there was
$21.41 per capita in circulation; that
amount is now increased to over $32
per capita and the increased produc-
tlon of gold Is adding over 81 per an
| mum to that amount, while the con-
slant increase Of the national bank
currency from the organization of new
banks is another cause of imitation. So
that with the volume of money in cir
culation increased so per cent per cap
ita since 1896 and still increasing year
by year much faster than the growth
/ W iopuie'ti'n' ene oAiS A"AS sAiAe
demand TOT this asset currency on the
plea that more money lis needed. The
most competent and impartial political
economists hold that this money infla-
ton, which Is worldwide rs far as the
increase IN the volume OF gold is con-
cerned, is responsible In part for the
great advance In the price of commodi-
ues, measured IN gold' 70 meet ana
reclprocate the diminishing purchas-
ing power OF eold-tnat 49, the guam
titatlve theory OF money. r
AS there Is no" over $ooO'ooo.oOo OF
united states bonds deposited to Sc
cure pank currency the proposed IN
crease by the bankers OF ~ per cent of
asset currency "onld make turther
lnnation1 OF over $2OO'ooo'ooo, or about
sl.oo per capita: Inc question OF FUR
tner lhnation OF the currency. with a
suii-greater ADVANCE IN the average
price Oh everything, measured IN gold.
| tied and the details of whether the
banks shall be granted this further
enormous increase Of circulation with
out giving any security can be settled
later.
1t must certainly appear to everyone
outside Of the Wall street interests and
the bankers themselves that the pro-
posed asset currency Is not needed, for
there is no complaint of too little money
to do the business of the country and
indeed there is abundant evidence that
| IL the frenzied financiers and bankers
were not interested in drawing to New
York money needed elsewhere to loan
on the watered stocks of railroads and
trusts Mt big interest, there would be
a plethora Of money.
II you feel that this asset currency
bill. is against your interest, you should
write to your Senators and Represen-
tatiyes and demand that they vote
against the asset currency proposition.
on the primary ground that further In
fation OF the currency Is not needed.
me rop. ahd .ne rresident. =.
vp.. pa" - as VIII
ulsya W. pelo,e Tue ieauers agree
" u'soanu .nes WI io'u conference
anu ai..n i.amnu uee'''res theS
m WI au..se tnel iolio ..S ~ JON 'le
.. ~ pa. ~ 40 l"'uen. noose-
.s.. 20 aos ~. sn' Nv" .nat we
'vA rs aso w. We were
fVeit, declares this enthusiastic hoose-
welt convert land we are going to get
into his party IT has been rather dry
picking for the Populist leaders in Kan
sas since the Republicans came back
into power and they evidently want II
chance at the postoffices, or something
equally as good. AS the rank and
file OF the old Populist party are read
ers OF the newspapers. they should re-
fer to the Presidents late message and
read, mark, learn andsinwardly digest
what he says there about the imprac-
ticable or sinister yisfonaries," evident
Il Vwrf war I IpNNtN et Il