The river press. [volume] (Fort Benton, Mont.) 1880-current, 1908-04-01
CURRENCY PROBLEM.
Wisconsin National Banker
Thinks He Has Solved It.

jHlnkS ne mas S0Ive0 II.
A GOVERNMENTAL SYSTEM.
G. E. latimer Believes His Plan Would
Place Our Currency Beyond Realm Of
Politics and Reach Of Men Who
Might Use Il For Private Ends.
c. F. Latimer, vice president OF the
Northern National bank Of Ashland.
Wis.,, has formulated a scheme deal
ing with the currency problem. He
calls it a government currency, safe,
flexible and uniform. In opening his
article on the subject Mr.. Ladmer re-
fers to the various plans which he
says have failed to meet the approval
Of the people and to the central bank
Of issue, which he believes would
meet with strong opposition, as it
would In all probability be managed
by the other banks and SAVIOR Of mo-
nopoly. He then discusses the pres
emit currency, deploring its lack Of
dexibility and uniformity. In refer
ence to the national bank note he says:
1T Is wrong in principle and would
not float except for the guarantee Of
Uncle Sam, and he, out Of the kindness
Of his heart pays the bank 2 per cent
interest upon bonds deposited for the
privilege of going good for the banks
notes. Practically all that a national
bank now does in the way of issuing
these notes is for the president and
cashier to sign them, and this is more
often done with a stamp than other
wise.
Sat this time we are witness to the
fact that u government Is issuing
many millions of bonds to be used in
aiding the national banks to secure
circulation and not for the legitimate
needs Of the government, as the gov
eminent now has on deposit with the
national banks over 5000, 600, 900, mon
ey which has been deposited from
time to time t 0 facilitate the business
Of our country"
AS to other paper money in circula-
ton, Mr.. Latimer believes the cur
rency issued directly by the govern
ment to be the best protected and the
most useful of all our paper money.
Continuing. he says:
"Any paper currency not protected
by a good coin reserve or guaranteed
directly or indirectly by a government
meets with little or no favor. In our
own country we have a currency to
the amount Of $3.50, 100000 issued d.
rectly by the government. Until there
was a disposition on the part of the
government to redeem this paper
ey on demand In coin it was badly de-
preciated. Later on, when there was
a doubt in the minds Of the people as
to whether the holder of the currency
was to get gold or silver when the pa
per was presented, came the endless
chain,' which nearly exhausted the
gold in the United States treasury
and would probably have done SO If
the president had not issued bonds to
protect the reserve. AS soon as this
was done and it became known that
the currency would be redeemed in as
good coin as used by any nation Oh
earth the trouble ceased. and no II
has since doubted the value Of our
legal tender notes.
"Such being the case, why not an
large upon the proposition and by 50
doing simplify our paper money and
place it beyond the realm of politics?
"Have Il board Of commissioners or
governors. appointed by the president
and confirmed by the senate, of not
less than nine or more than fifteen
men who by experience in Il financial
way are qualified to fill a trust of
great responsibility, men who will in
no way be identified with the different
banking interests Of the country and
will therefore be entirely independent
In their actions, to hold their positions
for life and to be paid salaries such as
the responsibility and dignity of such
positions are worth, placing them, as
are Il judges of the supreme court,
above reproach; make the secretary Of
the treasury an ex officio member Of
this body: place in charge Of this body
Of governors or commissioners our en-
tire treasury system, giving them pow
.er to issue government notes, backed
by a coin reserve Of not less than 40
per cent; refund the legal tenders and
treasury notes into a new form Of gov
eminent note; refund the national bank
notes into government notes Of like
character; take the gold and silver GER
tificates and do likewise. To do all OF
this and procure the necessary coin for
reserve it may be necessary to issue
United States bonds to quite an ex-
tent, possibly $500, 600, 900, but as some
5000, OOO.O 900 will be surrendered by the
banks the bond issue will be reduced
about $780, 900. The ultimate saw
ing to the government will be a large
sum Of money. The coin purchases
will be naturally from the banks, as
they will have no further use for coin
except for export, and it can her be
procured on demand by the p~resenta-
ton Of government notes or by the
nreSentation Of securities. the kind OF