The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1908-05-01
BOND-SECURED Or ASSET
CURRENCY.

farmers, as wen as uaHulaCsulSlo
and merchants, are directly and Vi
tally interested in the currency leg
islation now before Congress. Last
fall, during the heighth Of industrial
commercial and agricultural pros
perity, all interests received shock
from which they have not yet recov-
cred, and the principal cause Of ii
was our unscentifc, inelastic and
Anticipated system Of currency
which no other nation in the world
would tolerate.
Our currency system affects the
farmer and cotton grower in this
yay: In the late summer and fall o.
each year, they need large amount
of currency with which to pay their
help; and others need it to buy their
grain or Gotten with and 10 pay
transportation and other charges.
1t is estimated that several hundred
millions of dollars are needed for this
special purpose each season. Last
fall, when western and southern
Country banks tried to get back the
money which they had on deposit III
New York, they could not get it, Oh
at least not as much as they needed.
There were two reasons for this:
In the first place, some of the New
York banking interests felt it neces
.arv to use considerable OF their
funds to prevent the market price OF
stocks and bonds from becoming toe
greatly depre ciated; and in the Sec
ond place, the run upon and subse-
uuent closing of, one of New York {
largest trust com panies, scared the
banks to such an extent that they
supmarily suspended cash payments.
and boarded their money for fear OF
possible runs on them. Almost in
stantly banks all over the country
followed New York's example and
naturally, the public became alarm
ed, many depositors insisted upon
withdrawing their funds, and Others
boarded their money instead of &c
posting it, for fear they could not
withdraw it when wanted. Bust
ness, fer the time being, was paral.
wed and everybody suffered. No
other nation in the world suffered in
this way, because other nations had
scientific currency systems, while the
United States had what Andrew
Carnegie calls mot only the worst
system in the world, but the worst
ever devised by the misguided in
genuity of man." The basic trouble
is that our currency is issued against
bonds, which banks can buy to ad-
vantage when they are low and sell
when they are high; consequently
we frequently have an abundance of
currency when it is not needed, there
by stimulating speculation; and We
frequently have shortage whom the
agricultural and commercial inter.
ests need large amounts-and these
interests, through forced sales at
panic prices, or through enforced
liquidation, must therefore pay the
penalty for the shortage
Two remedial currency measures
are now before Congress which are
radically different in principle, and
which vitality affect all business in
terests. One, the Aldrich bill,
makes no pretense of being anything
more than "makeshift;" it would
not only continue our present faulty
bond-secured currency system, but
would extend it in way that many
regard as dangerous to the general
business interests of the country. Il
would provide for the issuance OF
$500,0t0,000 additional currency
based on state, municipal and rail
road bonds, and subject to six per
cent. interest. How many country
banks now own state, municipal OF
railroad bonds? Very few. Conse-
quentIy the additional currency
could only be secured by that class
of banks which have large holdings
of, or interest in, bonds. Would it
be well for the agricultural or com
mercial interests to have said issu-
ance controlled by investment Or
speculative interests p Country
Gentleman.
President Roosevelt sent another