The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-02-29

seventh since George Washington was
inaugurated president, which Will be
set up by this Congress. like the
Others will point the way to Prosper
ity---in this case to more assured
prosperity.
Currency legislation has right OF
way In Congress. new page OF
american history will be turned. 1t is
30 gravely important that prolonged
debate and consideration are due
there will be plenty of both. Each
previous milestone has been as slowly
and laboriously set up; but each one
with one exception, marked a step
forward, or, as now, readjustment
to new conditions, putting the finan-
cial affairs Of the people upon
sounder basis than before. After the
country had crossed rough and
perilous path OF Panic, each new
milestone. but one. has shown the
way to frmer, smother roads.
The development OF the United
States during the years which have
elapsed since the Civil War exigen-
cies caused the creation of the present
currency system is probably most
forcibly shown by the existing evil
dences OF funded debts-the municipal
and railroad bonds now outstanding.
AT the outset Of the present discus
sion of currency reform Speaker Can
non took steps to secure these fig
,ires, which then were not avail
able.
THE results show that there is at
present the enormous total of $3,516,-
$4,000 Of. railroad and municipal
bonds In the country which would
comply with the terms OF the Aldrich
bill, as basis for emergency circu-
lAtion. These figures are authori-
tat!ve and were furnished to Speaker
Cannon at his request by N. w.
Harris, senior partner of N. w. Har-
ris = Co., OF New York and Boston
and president Of the Harris Trust and
Savings Bank of Chicago, an author,
ity on bonds among the bankers Of
the country. The detailed figures are
as follows: railroad bonds, sl,973,-
100000; municipal bonds, $l,543, 1884,
900. This includes the Indebtedness
OF counties as shown by the census
report Of 1900. A statement OF ac-
tual county Indebtedness to date, II it
could be had. would increase the mu-
nicipal total still further.
NATICN'S FIRST FISCAL MILE
STONE.
The first money milestone was the
establishment OF the first United
States Bank, In 1919 as the result OF
the efforts of Alexander Hamilton.
then Secretary OF the Treasury. Prior
to this time and In the colonial days
banking In the modern sense was
hardly known. Massachusetts had a
bank as early as 1714, which issued
notes secured on real estate and 9TH
or "imperishable commodities. This
bank failed, but some OF its success
ors succeeded although they were
under no proper legal regulation and
engaged In many hazardous ventures.
The founding of the United States
bank and the chartering of banks in
the various states put an end to In
discriminate and unregulated bank
ing and laid the foundations for a
stable and adequate currency system.
The bank was capitalized at 100000
900 and was allowed to assume LA
bilitles to an amount not exceeding
Its capital. AS deposits were not
reckoned among It's liabilities, 1t was
enabled to issue nearly 10000, 900 of
notes. but In practice 1t kept about
half that amount outstanding.
The first bank was thoroughly sue
cessful, but Its charter was not re-
newed IN 1911 and for FIVE years the
government had to depend upon the
State banks, This was a period OF
trouble and disorder, brought about
largely OF the War OF 1872. Banks
suspended specie payments, except in
New England, and business was dis
organized until as a way out of the
difficulties the Second Bank OF the
United States was established In 1876
marking the second milestone In the
country's financial history.
JACKSON SMASHED MILESTONE
NO. Q.
This bank was run on similar'liaes
to Its predecessor and while 1t be-
gan It's existence under a cloud 4
was soon put on its feet by the exec
utive genius OF langdon Cheves, O
South Carolina, brought order ant
prosperity out OF the tangled financia
situation. The respite granted thu
Z country In this way lasted until 1882.
when President Jackson made hi
famous attack upon the bank ant
plunged the country into bitter pol
itical contest which only ended witt
the defeat Of Henry Clay for tn
presidency In 1882 and the expiration
Of the Banks charter In 1896.
This may be called the third mile
y stone, though In way It marke
vetrosression. rather than progress