The Churchill county standard. (Fallon, Nev.) 1908-1920, 1908-03-12
PUT SILVER IN
THE PEOPLES
POCKETS.
Nevada's Senior Senator
Talks on the Currency
Question.
Treasury Certificates Should
Be Issued Against Coin
in the Vaults.

WASHINGTON, March 3.-Senators
McCumber of North Dakota and New
lands of Nevada today spoke at length
on the Aldrich bill.
Mr.. McCumber was opposed to any
expansion of currency except to save
the country from catastrophe he said.
He favored government guarantee OF
deposits in national banks. During
colloqpy with Senator Carter, the lat
ter, commenting on savings banks, said;
"There ought to be clear way OPEN
ed from the back door of the failed
banks to the penitentiary."
Declaring that currency legislation
should be directed more to the security
of depositofs than to the creation of an
emergency currency, Senator Newlands
gave careful analysis of certain fea-
lures OF the pending bill.
The only way to secure depositors,
he said, "is by ample capital and the
reserves. The capital and the reserves
together constitute the security Of the
depositors and should in all cases
amount to between 80 and 40 per cent
of the stock. The capital should amount
to at least 10 per cent of the deposits and
should be invested in interest-bearing
securities, and the reserve, which
should amount to at least 20 or 25 per
cent, should be kept in cash in the
vaults OF each bank and not intrusted
to other banks"
Viewing the State and National banks
as one system, Mr.. Newlands contend-
ed it was obvious that the amount of
reserves kept in the banks was insufiici-
ent and would have to be gradually in
creased. He urged that the nation
should gradually retire the various
forms of United States notes such as
silver certificates, gold certificates and
greenbacks, and substitute for one
form of United States notes for coin
now backing the silver certificates, and
the gold certificates should gradually
be placed in the redemption fund of
the Treasury as security for this gener-
al form Of United States notes.
The United States Treasury, under
existing conditions, was practically en-
gagged In banking, he said. Fifty per
cent gold reserve was considered suffi.
cient for the note issue of bank of
issue. There should be no reason, he
continued why the United States should
not be able, in periods of emergency,
to increase the issue of notes upon the
gold and silver coin in its vaults to
meet any emergency.
The feature OF Senator Newlands' ad-
dress was his suggestion as to increas-
ing the bank reserves by means of SUBJ
stituting silver in the pockets OF the
people for legal tender and gold, thus
enabling gold and the legal tender to
drift into the banks and increase their
lawful reserves.
After showing that the gold produc.
tion of the world was not sufficient to
accomplish this, Newlands suggested
an issue of additional silver certificates
based upon the purchase OF silver. He
alluded to the fact that in his debate
with Senator Aldrich year ago he had
drawn from the Senator from Rhode
Island the admission that the country
could make an enlarged use of subsidi-
AIRY coinage without endangering the
gold standard and ought to do so.
The use OF these silver certificates;
Senator Newlands said, would aid in
drawing gold from the pockets OF the
people and increasing the gold reserves
held by the banks and such silver GER
tificates would be equally useful as full
legal tender money for the peoples use
He urged that now was the time for
thoroupb-poinp legislation