The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1908-03-14

pay any reasonable loss Upon notes,
and this fund The Government now
holds. II II should ever be found
insufficient, the tax Is promptly to be
increased. This special fund, how
ever, has never yet been called upon
for a dollar. The interest upon II Is
now returned to the banks as super
0uous security.
No banks in Canada or in any Of
the other countries possessed Of
proper banking has ever failed to be
paid upon demand.
Compare this with the security we
have ior cur currency from Govern
nent bsnds which have been sold in
g"l,l for 4 shade over one-third their
face falue (greenbacks fell TO thirty
six cents,) and they may sell so again
should we be drawn into serious
war. They are at a fictitious price
to-day equal to twenty per cent II
is not true, therefore, that these are
the best security.
The Government secures the legal
tender notes by keeping in Washing
ton a reserve Of nearly fifty per cent
in gold (ls0 as against $40 millions),
but the only redemption fund against
Our currency is five per cent in legal
tender paper money, which the banks
are required to maintain in Washing.
ton against their circulation.
There is only one substance in the
world which cannot fall in value, be-
cause II is in itself the worlds stand
ard Of value, and that is gold, which
the banks OF civilizated nations have
as their reserve.
There never was time, and there
never can be time, as far as we can
see, when million dollars worth OF
gold will not redeem million dol
lars worth Of debt. Hence the cur
rency OF European nations is absolu-
,cly secure, being based on gold
while she currency OF our country is
not. A serious war would affect it,
because our bonds would fall in value
Other nations 60 through wars, their
bank notes never affected, because
the reserves held in their own vaults
are in gold. Their business world
goes on much as usual. Ours would
be in constant danger of collapse.
Men have rallied against gold as il
il had received some adventitous ad-
vantage over other articles, Not so;
gold has made itself the standard Of
value for the same reason that the
North Star is made the North Star
il is the nearest star 10 the true north,
around which the solar system re.
wolves. II wandcrs less from, and re-
mains nearer TO, the center than any
other object II changes its position
less. To object to gold as the stand
ard of value, therefore. is as il We
were to refuse to call the star nearest
OF all stars to the true north, the
North Star. Man found that gold
possessed many advantages as a
metal and was the one that fluctuat-
ed least in value; there fore its merits
have made il the standard OF value.
That is all. II another metal appears
that keeps truer TO uniform value, il
will displacc gold and make itself the
standard, as the star Lyra, under pre-.
sent conditions, will finally displace
the present North Star.
Some men high in authority these
days seem to be haunted and alright.
ed by the dread specter Of war, and
clamor for four battle-ships this year
when last year the President announ.
ccd to the world that no increase oi
our navy was required, but only one
battle ship per year to keep the pre-
sent navy effective, Those thus af
flicted ponder upon the consequence:
that would befall our whole financial
fabric If, under the strain of war, it;
basis crumbled even in a small degree
compared with that which occurred
during the Civil War France, wher
overcome, the enemy besieging hei
capital, moved on in all peaceful bust
ness departments in perfect scFenity
Gold commanded one per cent pre-
MUM for a few days, owing to the
disorder reigning in Paris, which ren
dcerd it difficult for people to attent
| to business needs. With this excep
ton all went on as before from star
to finish As war measure, tn,
President should not delay asking
| Congress before it adjourns to la.
the foundation-the only possibl,
foundation--for a safe and perfec
banking sysetm, by separating th'
banks from the Government and re