Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-01-15
Especial Washington Correspondence Of
The ArgusO


The Argus.)
When the national convention meets
in 1908 it will be confronted by the
question as TO whether William ]. Bry-
an shall be nominated for the preSiden-
cy. The Democratic convention nomi-
mates only by twO-thirdS vote. Its
candidate, whoever he may he, must
have two-thirdS of all the delegates in
his support. OF course as a recon-
pense for this the Democratic party
stands for the unit rule Every state
delegation votes asa unit. The only
time when this rule was broken was in
Michigan in 1892, when the state dele
CATION was split. Today there is 10
possibility of break in any state. If
Mr.. Bryan is not the sfavorite of the
whole convention, he will not be nom
mated, and of all men he would he the
last to seek nomination under such
conditions.
Senator Owen on 1.-THE Panic"
OF course Oklahoma is far away
from the financial center of the United
States. Senator Owen has offered as
remedy for the financial panic this
proposition: Let the United States
| treasury advance treasury notes against
acceptable bonds deposited with the
| treasury up to 80 per cent of their
present market value to any person or
| corporation or bank. Let the treasury
charge for these advances of treasury
notes n charge of q per cent per an
mum for the first four months and s
per cent thereafter The measure
which Senator Owen is going to pre-
sent is to a certain extent very much
| like that which the bankers of the
country are going to offer under the
name of an emergency currency. The
chief difference is that the proposition
of the senator from Oklahoma makes
| the issuance of currency part of the
duty of the treasury and not part of
the business of the national banks. He
urges that the currency should be ma
tional currency and not national bank
currency. He says. THE treasury
notes advanced in this manner under
a penalty of and s per cent would
not initiate the currency, but, on the
contrary, would be automatically self
contracting and return to the treasury
immediately the present exigency has
passed"
Men who are in a position to talk
with authority say that the PROPOSE
ton of the bankers for an emergency
lcurrency based upon all sorts of Gu
rious securities will be pressed before
congress, will be reported by the com
nittee on currency and is likely to he
iadopted. Personally | do not believe
this. 1t does not seem possible that
the congress of the United States will
permit the enactment of law which
will allow the banks to issue currency
based upon securities which may oil
may not be thoroughly acceptable
There is a certainty that the committee
on banking and currency in both hous,
and senate will demand some new reg
ulation of the banking currency. Wha
that regulation may be it is too early
to determine. It will not be the conces
sion to the banks of the right to issue
currency based upon any sort of securi
ties. The time has passed when banks
, could be permitted to buy railroad
bond, deposit it in their own vaults ant
then issue money based upon it. Onl,
l last week one of the great railroad sys
: TENS in the south went into the hand
of receiver. If the banks of Virgini;
l land North and South Carolina ha'
l been issuing notes based on the bond
: of the Seaboard Air Line, what woul'
those notes have been worth?
a Undoubtedly the money question
: going to come up again in the mex
= campaign. 1t will not come up in ii
old shape of the free coinage of silvel
l. though many people believe that
e might we'll have been fought out O
e that line and that today the bankin
: system would have been better ha
that fight been won. But 1t mus