Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1908-01-16
A CURRENCY Plan
As Outlined by Melville B. ingalls,
at Jackson Day Banquet at
Lancaster, 0.
LOCAL BANKS NAY ISSUE
Would Provide Money When and
Where Needed Which Would Be
Guaranteed BY q Redemption
Tax and Collateral.

I
Lancaster, o., Jan. ,9.-Financial
Legislation for the relief Of all sections
Of the country was suggested by Mel
vile q. Ingalls, as a democratic cam
paign principle sure to win and equal
ly sure to benefit the people, in an
address delivered here Wednesday
night at the Jackson day banquet
which has for many years been an
annual feature OF this city.
Taxation Of franchises, tariff reform,
control Of corporation, reform in hank
ing laws and higher grade Of citizen
ship were advocated by Mr.. ingalls,,
who declared that the country was In
the midst Of a panic due to unwise
republican legislation. He said that
the historical effects that have been
made by the republicans to stop this
state Of things, which they themselves
created, and which they have attempt
ed to cure without attacking the foun-
dations Of the evil, have so shaken
public confidence In all corporate man
agement that 1t has revealed the
weakness Of our banking system, and
today there are as many financial
nostrums proposed as the traveller can
see patent medicine advertisements on
the fences Of New England as he
passes through"
eve have bond-secured currency,
and someI want to increase that; still
another strong party would like to al
low the banks to issue currency upon
their assets, with practically no limi-
tation."
AS to remedies he said
Leave our bond-secured currency
for the present alone and If there is
need Of more currency on account Of
panic or for the movement Of crops let
us provide that 1t can be issued by
dividing the country into clearing
house districts and let any bank in
any district apply to the clearing
house committee for more currency.
II they can put up satisfactory col
lateral with such committee, then let
this committee recommend the appli-
cation to the comptroller Of the cur
rency, and II he approves, then Issue
the currency to such bank. The gov
eminent should provide for this by en-
craving plenty of currency, SO that 1t
would all be uniform and need only
the signature Of the local bank of Is
sue and could be put out quickly. 1t
should be taxed sufficient to drive It
out of circulation when 1t was not
needed, and this tax should be used
as an insurance for paying and retir-
ing 1t, and also the expense Of issue.
Every local community then could
get their currency II they needed 1t,
and could put up good collateral sat
isfactory to their neighbors. It would
not be dependent upon Wall street or
Chicago, or any other place but could
be issued by the local points where
1t was needed; where the local com.
munity knew Of its necessity and the |
security that would be put up for 1t.
This surely Is not imitation. Neither |
is 1t controlled by any special infiui
ence. 1t is home rule-governed by |
the local conditions as they exist
either in New York or Texas-not in
the interests Of the spectators, but OF
the people. II by chance any Of the
collateral should fail (which 1t ought
not to do, as the local committee as
well as the comptroller Of the cur
rency pass on it) the tax will in
very short time furnish a fund for its
redemption.
Let us make this a party slogan,
and demand that 1t shall put into the
form of legislation, for the benefit Of
the people. Then let us also provide
by law that the government money
as collected shall be deposited in ma
tional banks, and that these banks
shall pay to the government fair rate
Of interest, say per cent, upon these
deposits. Today this money is dis,
and nothing Is received for
It. Tell me why this should bel The
banks pay and ~ per cent on de-
poslts Of individuals and companies,
and why should not the government
receive INTEREST," 1t would mean, on
the average Of last year, about $4,000
900 or 5000, 000-ho mean income
and thfe oorid ho ,,aad m raduna the