The silver state news. [volume] (Winnemucca, Nev.) 1907-1909, 1908-07-21
MORE PROFITABLE TO
GOVERNMENT THAN TO BANKS
The Law. which is an Administration
Measure, Little Understood by
the Masses

Inc Democrats OF the country seem
to be trying to make an issue in the
campaign of the Aldrich vreelands
currency measure, no doubt relying on
the fact that not one voter in a thou
sand has read it or is even remotely
familiar with its provisions In order
that its readers might learn something
of the history OF the law, the Silver
State News secured the following in
terview on the subject from Senator
Nixon during his recent visit to the
city:
:" How did you enjoy your reception,
senatorg"
Very much, indeed, was the reply.
was particularly gratifed to see
the large crowd OF old friends and
neighhors present, and at the spirit of
good fellowship exhibited This is the
first time | had ever seen the building.
aud | was much impressed with rs
appearance, and glad to see that the
people Of Winnemueea were pleased
with it.
''While the election Of Taft and
sherman is generally conceded, Sen
ator. what do you consider their chane-
IS for carrying Nevada7'
Excellent, was the ready reply
9 But our party workers must not take
il for granted that the ticket is going
to win hands down. We must make 4
good fight and in particular effect a
thorough organization of our forces
throughout the state
THE Democratic state press is Sc
verely eriticising the Aldrich- Nreelana
currency bill, Senator. What is your
opinion Of the lawl'i
~ voted for it, considering it a
good law. and most certainly have
since had no reason to change my
mind. When congress convened last
December, the country was in the
throes of a panic. and the people, ire
spective of party, demanded remedial
legislation. The bin IN question was
first submitted to the president for his
approval, and after it had passed hoih
branches of congress was signed by
him. so it may be fairly called an adj
ministration measure. / regard Sen
ator Aldrich as one of the keenest
economists and most patriotic states
men in the country. This measure
was not just what he wanted, but was
in the nature of compromise between
the conservatives. led by himself. and
the radicals. 1t is my firm conviction
that had the law been in force last
year that the panic would never have
been felt outside of New York city.
"The law is not generally under
outside of the fnanciers of the country
have taken time to read it. 1t is the
only financial measure enacted since
the close of the civil war that has
Injured to the interest of the govern
ment. One feature of the law is the
section that requires depositaries Of
government funds to pay rate of
interest on same that may be deter
mined by the secretary Of the treasury
The initial rate fixed by this official
was one per cent per annum, and as
result several Of the great New York
banks turned their government dcpos-
its back into the national treasury
Under the terms Of the laws banks
avaiIing themselves of the increased
circulation are required to pay at the
rate of five per cent a year the first
mouth and at the rate of one per
cent additional for each succeeding
month until the interest reaches 10 per
cent per annum From the New York
incident referred TO il can be seen
that the banks will be unable to profit
ably avail themselves Of the provisions
of the measure during normal times.
can securities used as basis for
currency must be approved by the see
retary of the treasury, and as a
further precautien banks outside Of
clearing house associations may pre-
sent only municipal, county or state
bonds. As rule these securities are
gilt-edged'