The sun., 1908-01-09

We observe that the measure intro
duced by Senator ALDRICH in respect Of
a special currency reserve has met with
general approval and is assured Of an
early passage. There is, OF course,
some factional opposition, but il is not
likely TO prevail or even TO cause ma
terial delay.
Senator ALDRIcH's bill is a very simple
one and does not aim at anything like
currency reform. II provides that the
Treasury may issue currency up to the
amount Of $3.50, ,OO0, 900, secured by the
same class of obligations at present
recognized as lawful in the case OF saw
ings banks in this State and in Masss-
chusetts; said issue to be taxable at s
per cent The prudential stipulations
and restrictions are adequate and the
whole measure impresses Us as wisely
conceived and ably planned.
If we hight be permitted 10 offer a
criticism. and we do so with the utmost
diffidence. il would be that the tax Of
per cent does not adequately differ
entiate this reserve FROM ordinarily cur
rent money on which the legal rate
conventionally stands at the same figure.
The rate, we venture to think, ought TO be
7 or per cent. At the latter figure the
possibility Of imitation is negli gible.
The great probability is that, sssum-
ing that the Aldrich bill becomes a law,
this generation will not witness a re-
course to it. The very existence Of the
law and the permanent availability Of
the sum it provides will operate very
much as the rate of the Bank Of England
operates in London. A money panic
will bc impossible. except indeed in case
of an overwhelming national calamity,
such as has led in England on occasion
20 the suspension Of the bank act--a
euphemism for the same thing that We
do here under another name
We have plenty of money in the coun-
try, ample for all It's needs, and there is
no dollar Of our currency which cannot
be exchanged at the holders option for
a dollar in gold The statement implies
that our currency is ideal; and in all
practical senses that IA the truth. With
leisure and security we can be trusted
to make it a little more scientific and
technically orthodox; but for the present
it is the part Of wisdom to let it alone.
Given this special currency reserve of
$3.50, 900 900. we think We shall get along
very smoothly and perform all our none
tary functions in peace. We do not be-
lieve that we shall call upon the Treasury
for any Of it, even in the annual crop
moving There is ample money for that
purpose. especially since the wealth of
the country is so much better distributed
and is held in such material volume in
' the vicinity Of productive areas. The
proposition TO draw money out at or
per cent. to move crops does not par
ticularly appeal TO our intelligence.
viii Senator ALDRICH tolerate one
brief interrogation? II ia, Why should not
Government deposits in the banks draw
at least nominal rate Of INTEREST," The
Treasurer Of the United States has had
for some time over $500, 900 on de-
post in national banks. Why should
he not be empowered to receive, say,
. per cent on such balances We have
the idea that II is unwise to challenge
public opinion respecting the discrep-
ancy between public and private depos-
tors, particularly at a time when the
ruling rate for money 10 persistently
high, and. indeed, out Of the reach Of the
class that is best entitled to It's use, 10
wit: the mercantile community. We are
quite aware that the Government has
been deprived Of interest upon its bal
ancss heretofore by the influence Of the
banks themselves. but the present is a
time for sweet reasonableness, unless it
be that we are incapable Of learning the
lesson which our Roosevelt panic should
teach even the most inoorTigible.