Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1908-05-27
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Currency and Finance.
The House committee ON banking and
currency having dangled along With
the emergency currency measures, has
ut last laid all of them aside, includ-
ing the Aldrich bill, which passed the
Senate, and has ordered a report and
bill to create a currency commission to
report to Congress next December and
to conane It's field of inquiry to the;
United States. =.
Also another bill has been agreed to
by the House leaders providing for
wthat may be called an asset emergency
currency based on the securities held
by the bank, commercial paper, bonds.
etc. The bill also provides for com
mission Of IS members, of whom six
shall be named by the House, six by
the Senate and six by the President.
II either of these commissions is au-
thorized by Congress, 1t will be quite
as difficult to get an agreement on q
general measure for the reform Of the
currency us the commit tee on banking
and currency has found it to be. There
are two schools Of finance amongst the
national bankers, one favorlng, a gem
eral reorganization Of the financial sys-
tenn with bank assets as basis for cur
rency--what they call scientific sys-'
tem-and the other school intent on
leaving our present system, such as 1t
is, with nm enlargement Of the basis
for bank currency to include municipal
and railroad bonds as security for e1ner-
gency currency which is to draw inter
est. Then we have another and more
radical school who want bank deposits
secured by the government, which is be-
| ing tried as an experiment by the State
of Oklahoma as far as her State banks
are concerned, and such national banks
as are willing to be included, with the
abolition OF bank currency and In its
place greenbacks issued by the govern
ment.
1t will be very difficult for the pro-
posed commission to harmonic these
conflicting interests unless other than
bankers and those whom they can influ-
ence are appointed on the commission.
The President will probably be guild
ed by leading Wall street bankers in
selecting the members Of the commits
sion he is called upon to appoint, not
perhaps from a desire to give them the
opportunity to control the financial sit
uation, but because he regards most OF
these princes of finance as the only
oracles that understand the real needs
Of the country and OF the banking in
terests. Those members appointed by
Congress will undoubtedly be politi-
clans, whose fitness and knowledge Of
finance may be very limited. The nee
esslties OF the people for sound banking
and currency does not seem to be con-
sldered by Republican Congressman, or
the President, but It Is matter OF
vast impor tnace to every one.
The present system Of national bank
currency was invented to force the sale
and demand for government bonds, and
there Is no doubt that 1t is Of constant
inducement for the Issue Of more
bonds, and now the treasury surplus
Is being rapidly, diminished BY the fall
Ing off In receipts from customs and In
|'ternal revenue taxes In consequence of
the business depression, there will; be
more Panama canal bonds issued in the
near future, and excuses found for
bond issues to preserve the national
bank currency.
AS every bond issued by the govern
ment Is mortgage on the property OF
the people that must be met, both for
the interest and principal, by increased
taration, 1t is Of paramount Importance
| to the taxpayers that the issue Of bonds
for. public works should cease, and the
4 necessary revenue for the government
be raised by taxes. Under the bonding
system the people pay twice over. They
pay interest and principal, while the
surplus in the treasury, the proceeds
Of taxes and bonds Is loaned without
interest to the banks
| A commission Of bankers would nat
urally propose that any new banking
law will favor the banks; but com.
mission composed chiefly Of expert
financial economists and business men
Of high character with an eminent law.
4 yer or two to pass upon the legal as.
poets Of the new law would be more
likely to conserve the interests Of all
classes. fla proper commission is au.
thorized It is probable that Congress
4 will accept Its findings, and for years
we would have to adapt the business OF
the whole country to 1t, whether fol-
veal or woe. There is nothing that re.
/ quires 80 much foresight and care as
the laws that govern the financial at.
fairs Of the government and the people
Campaign Fund Publicity.
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