Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1908-07-16

recuperatlVe energy OIL our people is
marvellous, and already they are bringing
order out of chaos. We will have the
experience of other panics. Gradually
our wounded industries will limp out OF
the storm, and sooner or later normal
conditions will be restored. But for the
damage already done, and for
inevitable losses yet to accrue, there can
be no restitution. Out of it all
only this poor consolation, that it is a
Republican panic. Not even in the re-
hottest degree can it be charged to the
Democratic party. That is the signiti-
cant fact l wish especially to impress. 1t
proves the falsity of Republican accusa-
ton and the emptiness of Republican
boaSting. Hereafter ar men will give
less heed to traducers when the name of
Bryan is heard.
THE ALDRICH-VREELAND BILL.
Certain Republican leaders in Congress,
like Aldrich and Vreeland, following a
coterie of great bankers n financlers,
affected to believe that the panic was due
to a lack of none and the want of
greater ~fexibility in our currency system.
Thereupon they started in to incubate a
remedy, and the result is the hyphenated
m Iaoa IaW' 6 6no tSis 1 law tnf Aienlc now to
speak. Prior to it's passage national
bank notes were issued only when United
States bonds were deposited to secure
them. The new law makes two radical
Lll9 III lAAD Rdt hhSbAhh 1hhSSt 'AAASH
this law national banks may now under
certain conditions pledge state, county,
town and municipal or district bonds as
the basis of their circulation. Upon, such
bonds the banks may receive circulating
notes equal in amount to ninety per cen
tum of the market vafde-~ofaA tih4Ns~AAAAs4
deposited, the market value to bas S4tus
c~ertained under the direction of the SIS IS
rotary of the Treasury, not to exceed tn
par value of the securities. SeconG.
under this law ten or more national
banks, having an aggregate capital and
surplus of at least S., 900, 900, may or
ganize what is termed a national cur
rency association" The chief purpose of
these associations is to enable al individ-
ual bank, a member of the association,
to use its commercial paper, that is,
lation. If a bank holding membership in
one of these associations should desire
to use its commercial paper to obtain
additional circulation, it would be re-
| quired in the first instance to lay the
proposition before the board of managers
of the association, together with the
securities it offered to pledge. If the
officers of the association should approve
duty to value the securities and trans
nit the proposition to the Comptroller of
the Currency. If in turn that officer
should approve. it, it would then be his
duty to lay it before the Secretary of the
Treasury, and if he should be of opinion
that the conditions contemplated by the
law existed and that all statutory re-
quirements had been complied with, he
would direct the issue of additional cir
c~ulating notes, based on the commercial
securities pledged, to an amount, in his
discretion, not to exceed seventy-fiVe per.
centum of the cash value of the securi~
would be delivered in the first instance
to the currency association for and on
behalf of the particular ban applying
for them. The entire association, under
the law, would be responsible for the re-
demption of the notes, the association
holding the pledged securities to indemni-
fly it. The evident and confessed object
of the law is to enable the larger national
banks to unite their credit and CONNER
cial assets, n by cooperation to utilize
them to obtain additional circulation as
they might have occasion to need it. The
law fixes the aggregate amount that may
be issued under its provisions at $780,
900, 600. All notes issued under the pro-
visions of this act are made subject to a
tax at the rate of 5 per cent per annum
for the first month, and one per cent per
month additional thereafter, until a rate
of 10 per cent per annum is reached. The
notes issued under this law are known as
emergency currency. !" and the tax re-
ferred to is imposed to hasten their early
retirement.
This, in substance, is the remedy GER
tain national bankers and Republican
statesmen, acting in cooperation, pro-
pose as a panic preventive and panacea.
The best feature of the law is the pro-
vision limiting it's continuance to six
years. That is the duration fixed by it's
Terms. / venture to say, however, that
while 1t is claimed to be an experiment,
tentative and temporary, It has been
really put out as a feeler. If the people
endorse the measure, II they ran TO ex-
press their disapproval of 1t, then the
policy 1t inaugurates will be continued.
1t Is the first hesitating step toward
turning our monetary system over to
the national banks. Movements of this
kind gather volume as they go. Is it
possible that the American people are
willing to endorse this dangerous depar-
ture? Here, more h ever before. the
government abdicates the sovereign furc-
ton imposed upon 1t by the constitution
Of making money, and confers that
great p~rerogative, at least in substance,
upon corporations. The high duty Of
providing a safe and adequate currency
to the people is one of the most delicate
and important functions Of our sover-
eighty. 1t is a function the American
people cannot afford to delegate to pri.
vate, or semi-private, public bodies
That is 9 ~prerogative that should Re.
hands of the people, or in the hands OF
their public representatives. 1t Is nc
answer to say that in q great emer-
gency, like that recently. experienced, the
would be greatly strengthened in theii
commercial stress. If that were all Of
Iit, and IL there were no other and highcl
consideration involved, and IL the banks
should In the utmost good faith use tht
law alone for legitimate purposes, 4
might be that no immediate harm woult
result. But the principle is wrong, tn
policy vicious, and both trench upon thu
constitutional privilege and duty Of thu
sovereign government. Moreover, thi,
J law, as 1t Is, may be employed to worl
unspeakable injury. 1t enables bank
and banking associations 70 value thei
own securities and to obtain circulating