The Penn's Grove record., 1908-01-24
The CURRENCY QUESTION
How Paper Money Should Be Issued.


AAOW 1 pRSA AAShA$y W LIZ AccUSas
Commoner
"There are two phrases of currency
question which are demanding atten-
ton. The first relates to the kind of
cnrreEcy we shall have. For years the
banking interests have been endeavor-
ing to secure an asset currency. After
they found that they could not bring
the country to the approval of an asset
currency as a permanent currency, they
changed their tactics and asked for it
as a temporary currency. They have
magnifed the Importance of elasticity
and sent out long diScourses on the in.
jury done to the agricultural sections
by a scarcity of money during the period
of crop moving. The very men who
shouted themselver hoarse declaring
that we had plenty of money in 1896
have been clamoriug for the right to
issue more money even when the pei
capita circulation has increased more
than fifty per cent. These financiels
have seized upon the present financial
stringency to force their plan through
congress, but they have not deceived
the democrats, and it is evident that
many republicans understand the plan.
Steadfast resistance ought to be offered
to any plan that ~contemplates a change
Gin the basis for the bank note circula.
ton. The president indicates that he
is willing to approve of a measure which
will permit the issue of temporary bank
note currency on bonds deposited,
While this would be better than cur.
rency issued on the general assets of the
bank; it is not necessary to make evel
this change.
"Whatever elastic currency is needed
ought to be supplied by the government
by the issue of United States notes like
those now in circulation, and these notes
can be loaned to not only national banks
but state banks. In fact, the security
being regulated by law and the interest
fixed by law, there is no reason why the
loan should not be made to individuals
as well as to banks, and surely there is
no reason why such loaTs should be con-
fined to national banks. We already
have the United States note in circula-
ton, aud it is a legal tender. The
bank note is not a legal tender, and
being redeemable not specifically in
gold OF silver but in lawful money, was
e better than the greenback during
the war, for the banks exercised the
right to redeem their bank notes in
greenbacks.
"There is another kind of emergency
currency that might be provided for.
namely, emergency currency issued upon
government bonds. If banks were
allowed to keep a part of the reserves in
government bonds and allowed to
deposit these bonds as security for a
-HoaE of bank notes whenever they need
ed to use the reserve, they could make
as much money ON that part of the re-
serve as they now do upon the reserve
loaned to other banks. According to
the present law banks are allowed to
count as reserve money deposited in the
national banks of reserve cities, and
they avail themselves of this law
in order to draw interest upon their
reserves. They can not loan the re.
serves to individuals but 10y loaning
them to banks, they derive the income
usually about two per cent. II in
stead of being allowed to keep a part of
the reserves in other banks they were
compelled to keep the reserves in their
own banks but allowed to count govern
ment bonds as. a part of the reserve.
they could protect themselves against
emergencies and yet draw interest upon
SO much OF their deserves as was over
ed by the bonds. There is no reason
why the government bond should not
be made available for borrowing from
the government whether the bond is
held by individuals or by banks, but by
allowing the banks to keep part of the
reserves in the bonds, they could escape
the perils involved N the loaning of
their reserve to other banks.n
Two weeks ago we told the true
democratic idea on the money question
as expounded by jefferson and jackson.
The above shows William j. Bryan's
idea of issuing paper money which is in
accordance with Jefferson's and Jack
sons, the true democratic idea for a gov
eminent by the people. That is the
real reason he is not considered safe nor
sane Sound in mind) by Wall Street
n by those who take their political
opinions from writers in Wall Streets
interest.
While Mr.. Roosevelt has adopted
several OF MI. Bryan's ''radical'' ideas
such as an income and inheritance tax.
strict government supervision and
publicity OF corporation business, vet he
IS a sound Republican and sane and safe
with the money kings of the whole
earth, because he allows them to dictate
the management OF the U. S. Treasury
and favors a central U. S. Bank tor
issuing the paper money which is in
line with the Hamiltonian ideas of
finance.
In six months we will be in the midst
OF a Presidential campaign when these
questions will be discussed amidst preiu.
dice and passion Take nov a Silent.
sober thought as to whether the govern
ment or corporations should issue
money to the people necessary for the
exchange of their products and merchan-
disc.
The Prudential Insurance Comnany