The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-19
ALDRICH AND CURRENCY.

Senator Aldrich of Rhode Island
(whose reported declinstion TO servo
another term IN the Senate has been
contradicted, with the result that be
will doubtless be re elected at the ex-
piration Of his present term,) has, it
appears, made good use IF his study of
the banking and currency systems of
Europe. He went across the ocean on
his mission ostensibly to study those
systems with view 10 comparing them
with our OWE and to remedy such de
fects as exist in our currency and bank
ing system, but with the idea that he
had nothing TO Learn on these points.
and that VIC must continue along lust
as we were, He is now quoted, how
ever, 10. the effect that as compared
with European countries we have no
banking system, but Just banking
growth, and that such wholesale sus.
pension of banks as was witnessed IN
the United States last fall could not be
possible in any of the great European
countries. And he concludes that
something has got TO be done TO make
1t impossible here.
This is a remarkable change for Sep
ator AldrIcb to avow. He has been full
Of the idea that he knew all that was
10 be known about the currency aues-
tlon, about banking, and about finar-
clal propositions generally. but moe
especially that BIC was fully informed
as 10 tie best possible legislation on
all these questions. 1t is quite possible
| that the severe criticism upon his i'm
practicable AID uuussble emergency
currency bill, passed at the last ses-
SION of Congress, has taught him some
thing On this point ard opened his
mind to conviction. Ii seemed aston
lshing all the time that any one ol
real intelligence on financial questions
could pavo had much hope of actual re.
suits under that emergency currency
law Experience has shown that there
Is not even one banking association
formed under it; there is no emergency
currency printed, because the Secre.
tary of the Treasury is in doubt MS to
the meaning of the law; and while it
would be easy for banks 10 get into an
emergency association there seems 10
be no way provided for them to pet
out OF 1T after they have got in. Be
sides, the law allows banks to apply in
dlvldnally 10 the Secretary of lie
treasury Tor the emergency currcncv,
winch contradlcts the association pro.
VISIONS. The uncertainty that the See.
retary OF the Treasury labors under
with respect to the meaning of the law
prevents him providing the currency. oi.
1eclolng as TO any security that woulu
be acceptable for such currency. The
law, therefore. ls a dead letter. and is
mover likely to be put into effect at
all. a pitiabe outcome Of much
trumpetcd measure. the weakness OF
winch was seen by experts even before
it was passed
If now Senator Aldrich Will listen
to the advice of men who are really
financial experts in this country. and
men who understand a good deal bet
ter than he does the currency systems
or England, France, Germany and
Italy. we NAV have hopes of getting
a sound banking and currency system.
1t is clearly manifest that government
bonds cannot always suffice as security
for bank issues. Fer, first. the Gov.
eminent ought TO be getting out of
debt. and not increasing its debt. The
idea OF increasing the public debt
merely to allow banks to deposit the
bonds as a. foundation to issue cur
repcy upon Is an abuse OF public ad-
ministration and an injury to the peo-
pile. The National debt should have
been practically. wiped out by this time.
And II would have been but for the
necessity OF keeping the bonds out as
a basis for National bank circulation.
The ipterest'bearing bonds amount prac-
tically 10 one billion dollars, on which
the interest at two per cent is twenty
million dollars. This interest the Deo.
pie have 10 pay. and it is altogether too
much to expect that they will always
remain willing to pay that merely to