The Norfolk weekly news-journal., 1907-12-27


cranks in the house and the senate
would have a chance to air their views,
which, in the course of time, would be
reflected more or less by the people.
Time has shown the wisdom of the
program outlined by the leaders in
the senate. There have been no more
bank failures. Conditions in the mon
ey market are slowly but surely i'm
proving.
1t has been practically agreed by
congressional leaders, with the con-
sent of the president, that there shall
be no yielding to the temptation to
engage in a wholesale reform Of the
financial system.
Quite the contrary program will be
followed. So far as they can do so,
the older senators will turn their entire
attention to the work Of providing for
a strictly emergency currency.
BY that is meant that the only f.
nancial legislation which is to pass
congress at the coming session will
be law providing that currency may
be issued by national banks as an
emergency measure only. 1t will be
so heavily taxed, possibly up to the
rate of Z per cent per annum, that 1t
will be absolutely Improbable after
the emergency has passed away.
After repeated consultations with
the president an agreement has been
positively reached that there shall be
no surrender on the general subject
of asset banking"
Nothing in the way Of permanent
addition to the currency will be pro-
vided for, and the emergency circula-
ton will be made to shade into ma
tional bank notes as closely as pos
sible. The whole idea Of legislation
which will be undertaken next month
will be to provide a purely emergency
circulation without necessitating any
radical change in the existing system.
This can be done much more readily
than most people imagine. The gen
eral proposition agreed upon by the
president and the leading senators is
for a form of national bank notes
backed by approved securities and
taxed not less than per cent and pos
sibly per cent per annum.
1t is a simple matter to make this
emergency circulation just as elastic
as anybody wants to have 1t, and at
the same time to merge it right into
the present bank note, so that there
will be no possible discrimination be-
tween the two.
If it were provided, as at present,
that national banks might issue circu'
lating notes with United States bonds
as security at tax of one-fourth OF
per cent, up to the capital stock OF
the bank, and additional notes backed
| by approved savings bank securities
only, at tax of s or per cent, an
elastic system would be created imme
diately.
| When there was scarcity of money
banks would be only too glad to Dor
row, on their otherwise uncovered Sc
curities, as much money as they need
ed. They could put it out instantly fol
the payment of all obligations.
1t would pass as current and would
be fortified by the guarantee of the
United States. The government would
not lose cent.
There is not the slightest disposi
ton in congress to authorize the ere
alton of a central bank. Such an in
stitution may or may not be a desir
able thing, but it could not be put int
Operation without a practical revolu
ton in our entire system Of currency
and no one in congress desires to TN
dertake such a thing at the presen
time.
Nor is there the slightest likelihood
of the adoption of what is known a
the bankers "asset currency" system
That plan provides for uncovered as
set notes, a certain portion of whic
are taxed at such low rate that the
would probably remain out forever
Not only is congress indisposed to pas
any such measures as this, but 1t
practically certain President Roosevelt
would veto the Fowler bill or anythin
like it if the matter were presented
him for executive action.
Currency legislation of the simples
character is all that will be permitte
to pass through the Sixtieth congress
unless there is radical change {
: opinion at the capitol.
AROUND TOWN.