Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1907-01-10


Than Doubled Since 1873 and In
creased 80 Per Cent Since 1OOO-Be-
ware of Republican Congressmen
With National BANK Connections.
The American bankers committee
have formulated a plan for credit, or
clearance, currency to be issued by ma
tional banks, In addition to the bank
currency now issued with United States
bonds as security. The amount pro-
posed to be issued is not to exceed 80
per cent Of the bond secured circula-
ton outstanding, which amounted to
$4O9,OOO,OOO in 1905, but which has
been largely increased since that date.
The security for this proposed issue Of
credit currency Is rather indefinite, the
report of the committee stating:
Before any bank can issue credit, or
clearance, currency 1t must deposit
with the treasury department or de-
positories to be designated by the COM
mission approved securities Of the
bank passed upon by the comptroller
Of currency's department to an amount
10 per cent in excess Of circulation to
be issued"
The approved securities of the banks
probably mean the notes, secured and
unsecured, that have been discounted
by the banks, but that would seem to
be a very poor security for currency
and quite troublesome to handle on &C.
count of its constantly being paid or
removed. AS the comptroller Of the
currency's office has not shown any
excessive ability In spying out defalca-
tons and other banking Irregularities
In advance of the failure Of banks, 1t
can hardly be trusted under the pres
ent management to exercise further
discretionary powers for the protection
Of the public.
The people will indorse no law pro-
vidlng for bank currency that Is not
redeemable by the government, with
no possibility Of loss for the people or
to pay for loss by taxation.
But there Is another question that
vastly affects all the people in this
scheme for currency imitation, and that
Is its effect upon the price Of commodi-
ties. The present imitation through the
increased output Of gold and the in.
crease Of the national bank currency
from 90 to 100 per cent Of the face
value Of the bonds deposited and the
great number Of new national banks
authorized under the law which re-
duced the necessary capital to $4,000
has inflated the circulating medium
from 1882 per capita in 1878 to over
$32 now, or over 100 per cent and over
so per cent since 1900. To this infla'
ton may be charged part Of the great
Increase in prices, which Is also largely
due to the monopolies created by tariff
protection of the trusts anal combines
The imitation Of the currency and the
prices Of commodities would seem to
have gone far enough for the comfort
and advantage of the people and to
pass laws expressly for the benefit OF
the banking class and the Wall street
spectators is special legislation and
undemocratic.
AS the Republican party Is notorious.
ly favorable to the banking and cor
poration interests, It, Is advisable fol-
voters to pledge candidates for con.
gress and state legislatures who will
elect United States senators, that they
will oppose further imitation of the cur
rency for the benefit of the banks.
The only demand for this asset cur
rency Is from the banks and from the
Wall street spectators, who are con
stantly crying for more money to carry
the burden Of the inflated valuation OF
stocks. which are largely based on nc
real values.