The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-02-29
NEW MONEY MILESTONE
MARKS NATIONS GROWTH
Congress will Set the Seventh That the Develop
ment Of the United States Has Required So, s1o,->
184, 900.

~~NH$NHNNNSNNN OBSERVATION-DISCLOSURES
After several attempts at constructive
Legislation the so-called independent
treasury system" was established,
by which the Government made its
collections and disbursements in
specie only and kept its funds in the
Icustody OF its own officers. This left
the country dependent on the State
banks for banking facilities and led
to the development of the business
along many new lines, some of them
hazardous. and paved the way for
the fourth great change, in the estab-
lishment Of the national bank system
in 1868.
REASONS FOR PRESENT SYSTEM.
Like all OF the great changes be-
lore 1t this was an emergency meas
ure, calculated not to establish an
ideal system but to meet a critical
situation. The Government was faced
with the necessity Of finding a new
market for the enormous bond issues
OF the Civil War and at the same
time OF establishing solid currency
as opposed to the flood of depreciat-
ed legal-tender paper which seemed to
threaten. The national banks in
corporated under the new law were
granted the privilege which they now
possess of issuing notes secured by
deposits Of Government bonds, and
the notes of the tate banks were
taxed out of existence.
Since that time the turning points
OF Importance have been the Sher-
man Bill OF 1873. the Free Silver agi-
tation OF 1896 aud the amendment of
the National Bank Law in 1900, re-
ducing the minimum required capital
ization OF national banks from $780,
600 to $4,000.
! The Aldr'ch Bill, If passed by Con-
gress, Will not cause any such rad
ical readjustment Of the monetary
system as did the other great changes
Just reviewed; for example. the Gre
alton OF the national banks or the
founding OF the United States bank.
On the other hand. 1t Is aimed, as
an emergency measure, to put an
end forever to any possible recur-
renee of such financial panic as the
country has just weathered, due 10
the impossibillty OF securing enough
currency to meet sudden demand.
The attitude of both houses toward
this proposition is epitomized in the
following unpublished statement OF
one of the leaders OF Congress.
.The bill is not intended to yieid
n profit to the banks, but II IS IN
tended to render 1t unnecessary 10
even take the currency out ! may
20 farther and say to render " nm
possible for the national banks OF
the country to suspend payment TO
their creditors and at the same time
escape the appointment OF receivers
to wind up their affairs II such
law had been on statute BOOK III
October there would have been no
suspenson OF payment by the banks.
VESTS BOND HOLDINGS UNDER
ESTIMATED.
Many new facts regarding the
financial work of the country have
been unearthed as result OF the
present investigation. One OF the
most surprising of these is the fact
that he West has parted company
with the East in so far as mun1cipai
loans are concerned and now fiin-
Iances It's own public Improvements
The N. w. Harris report to Speaker
Cannon again serves as authority.
"The West is a much larger owner
of bonds than Is generally sup
posed" writes Mr.. Harris, "and Is
increasing more rapidly than the
Fast and will undoubtedly continue
SO to do. Municipal bonds issued In
the West are now clearly all pur-
chased by western investors. while
New York investors have always fav-
ored railway bonds, so that New
York has never been much Of mar
ket for municipal issues. or course,
! municipal bonds originating In the
State of New York. are bought by
1.-THE New York Savings Banks. How
! ever, am sure that OF late years
} there have been more municipal bonds
which were issued in the State of
, New York which have been bought
by and are now owned In the West
than there have been western muni-
|cipal bonds Is concerned, their value
J lis by no means controlled by Wall
: Street"
| This statement, coming from one
: whose leadership In municipal bonds
lis as real though silent. as Morg-
| JAMS Industrial issues, explains the
! support which many western bankers
0 ARE giving to the Aldrlch Bill IN
3 spite of the assertions of its oppon'
s 'ents that 1t Is drafted in the inter.
I ,ests OF eastern institutions.
: VIEWS OF WESTERN FlNAN
h OIERS.
Q One OF these bankers writes
n ''There Is no doubt but we neet
some form OF elastic currency ant
: with this properly secured by muni
d ripal, state and county bonds as orig
8 inally proposed there is 10 doubt 1