West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1908-01-23
UUARENCY PROBLEM,
Wisconsin National Banker
Thinks He Has Solved Il.
A GOVERNMENTAL SYSTEM.

c. F.-tatimer Believes His Plan Would
Place Our Currency Beyond Realm Of
Politics and Reach Of Men Who
Might Use II For Private Ends.
G. Il. Latlmcr, vice president of tho
Northern National bank OF Ashland,
WIS, has formulated Il scheme deal
Ing with tho currency problem. IIo
calls IL government currency. safe,
heSiblo and uniform. In opening HIS
article on the subject Mr.. Iatlmer r,-
fors TO the various plans which no
says have failed 20 meet the approval
OF the people and TO tho central bank
OF issue, which ho believes would
meet with strong opposition, as IL
would In all probability be managed
Dy the other banks and SAVIOR OF mo.
nopoly. Ho then discusses tho pres.
ent currency, dcplorlng It's lack of
hexibillty and uniformity. In refer
enco TO tho national bank note he SAYS:
ut is wrong In principle ana would
not float except for tho guarantee of
uncle sam, and he, out of tho kindness
or his heart pays the bank per cent
Interest upon bonds deposited FOR the
privilege OF going good for the banks
notes. Practically all that n national
bank now does In tho way OF issuing
these notes Is for the president and
cashier to sign them, and this IL moro
often done with Il stamp than other
wise.
AT this time we arc witness 90 the
fact that our government IL Issuing
many millions of bonds TO DO used I'm
aiding tho national banks TO secure
circulation and not for tho Legitimate
needs of tho government, as tho gov
ernment now has on deposit with the
national banks over 5000 600, 900, mon
cy which has been deposited from
time TO time 10 facilitate the business
of our country"
AS TO other paper money I'm crculn-
tlon, Mr.. Latimcr believes the cur.
rency issued directly by tho govern.
mcnt TO bo tho best protected and the
most useful of all our paper money
Continuing, he says:
Amy paper currency not protected
by good coin reserve or guaranteed
directly or Indirectly by government
meets with little or no favor In our
own country we have currency TO
the amount of $35O,O00,00O Issued dI-
rectly by the government. Until there
was disposition on the part OF the
government TO redeem this paper mon
oy on demand I'm coin 1t was badly dc.
preclated. Later on, when there was
n doubt I'm the minds OF tho people as
to whether the holder OF tho currency
was TO get gold or silver when the pa
per was presented, came the endless
chain, which nearly exhausted the
gold In the United States treasury
and would probably have done 80 If
the president had not issued bonds ~
protect the reserve. AS soon as this
was done and it became known that
the currency would be redeemed In as
good coin as used by any nation on
earth tho trouble ceased, and no one
has since doubted the value of our
legal tender notes.
such being the case, why not en-
large upon the proposition and by so
doing simplify our paper money and
place It beyond the realm OF politics?
Have board of commissioners or
goyernors, appointed by the president
and confirmed by the senate, OF not
less than nine or more than fifteen
men whosby experience I'm financial
way are qualified 60 I'll n trust OF
great responsibility, men who VIII I'm
no way DO identified with the different
banking interests Of tho country and
Will therefore be entirely independent
In their actions, 20 hold their pos tlons
for life and 10 be paid salaries such as
the responsibility and dignity OF such
positions are worth, plocing them, as
are our Judges Of the supreme court,
above rcproach; make tho secretary OF
the treasury nm ex ofIicio member OF
this body; place I'm charge OF this body
or governors or commissioners our en-
tire treasury system, giving them pow
or to issue government notes, backed
by coin reserve OF not less than 40
per cent; refund the legal tenders and
treasury notes into new form OF gov
ernment note; refund the national bank
notes into government notes OF like
character; take the gold aud silver Ger
tincotes and do likewise. 10 do all OF
this and procure the necessary coin for
reserve &c may DO necessary TO issue
tent possibly $4OOOOO,OOO, but as some
SG00,0OO,OO0 will be surrendered 10y the
banks the bond issue Will be reduced
about $200,OOOOOO The ultimate saw
Ing TO the government Will be n large
sum Of money. The coin purchases
will be naturally from the banks, as
they Will have no further use for coin
except for export, and It can then be
procured on demand by the prcscnta.
tlon OF government notes or by the
presentation OF securities, the kind OF
which we will mention later.
zone might inquire, what is meant
BY tho word "coinT'' ft may be said
that coin should be construed 20 mean
gold only, that gold IS tho only true
measure OF value and that everything
should be measured by the gold stand
ara. We would not depart from that
standard; neither would we wholly ig-
Aoro silver.
Consolidating the gold and silver
coined and in use in four Of the most
progressive nations OF the wOrld-viz.
tho United states. Germany. France
and the United Kiugdom-wc find that
silver Is used 60 the extent OF 2iiL per
cent Of the whole. 10 do away with
this metal as q part Of our circulation
or os n part OF our reserve would be n
II Is very important and in TACT o., is alb
b I'll ma