West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1908-01-23
NUMBER l3

movc In thC wrong direction ana tend
TO dlsarrGngc values Co a great extent.
Ihercforc as substantially - per cent
or the coin held by four OF the leading
nations OF tho world Is silver. wo con.
tend that our reserve should loo held 75
per cent I'm gold and - per cent I'm Ell.
yer. That coin is both gold and silver.
THUS far we have procured theo-
retlcally uniform currency. protected
by coin reserve. How about lts flexi-
bility2 How are we 60 issue new cur
rency or withdraw tho old as required3
Tho stock of money I'm the United
States Is something over $4,000. 600. 900.
or this sum $2250. 100000 a. I'm coin or
coin certificates. and OF the coin ST.
ooOOOOOOO Is I'm gold and somo $780,
100000 IL I'm silver. S35O.OOo.0OO IA I'm
legal tender notes aud over $500 Ooo.-
900 Is In national bank notes. All OF
tho above should bo converted into n
new form oc government note, except
Ing the 40 per cent reserve TO bc held
In the treasury, being practically the
percentage of reserve now held hy tho
banks and the treasury. This could be
dono without tho least possible fric-
ton or disturbance aud without the
expansion or contraction OF single
dollar.
ITO Increase tho.amount tho govern
ment could authorize tho banks or
others TO deposit securities against
which notes could bo issued. Railroad
bonds and bonds OF other corporations
which are subject TO great deprecIa.
ton and appreciation should not bo
used as such security, but tho class OF
bonds so deposited should be OF pub
lie character such as municipal, coun-
ty and state, all TO be carefully select
cd with good margin or security,
subject to graduated tax as the cir
cumstancos warrant forcing their
withdrawal when no longer needed.
Public securities could be lodged I'm
advance with the governors or com
missioners That they could bo availa-
bio as security FOR circulation at al
most moments notice.
ITO avoid an accumulation OF funds
In tho treasury In excess of the amount
required for tho reserve and working
balance. deposit any surplus I'm nation
al banks under tho directions OF tho
governors or commsslonorsr taking as
security tho same class OF bonds as
would bo acceptable for an emergency
circulation. The governors or commits
sioncrs should nX rate OF interest TO
be paid upon such deposits so that
whenever there is redundance OF
money the hank. I'm order 20 stop the
payment OF interest. could turn tho de-
poslts into the treasury, whore they
could be held untll again needed. It's
action would bo entirely automatic.
"rho process outlined above would
enhance the value of all classes OF
bonds issued Icy the people, lower the
rate OF interest on the same and
would be n hcalthful stimulus TO tho
development OF all public works.
"Our aim has been TO formulate
plan whereby the currency OF our coun-
try can be placed beyond the realm of
politics. out Of the reach OF men who
might manipulate II for private ends,
TO givo uniform and flexible circu-
lating medium with percentage OF
coin reserve larger than almost any
other nation and backed by the God
given resources Of country unequal
cd In the history OF man, the develop
ment OF which Is still In It's infancy"