New-York tribune., 1908-03-08
T,rrRGENCY CURRENCY.
coesfion That Government Make
and Set Ii aside.
rs,to- of -ri,e Tribune.

- Editor cztt'e AIkHaue.
The general discussion of the many plans
III f,- obtaining that elasticity in the
T- yrI,ich seems desirable is having
caT'eie -, wholesome effect The people are
* -, slat the government or the United
Ns .srss behind and makes good each and
So -.rsr dollar TOW in circulation in the United
~ rsrhans through the medium OF the
-. hank note, perhaps directly in its own issues
so' to-iay no one cares whether the national
% - no aas in his pocket are issued by
h'N an irsolvent baT k Now comes the oues-
81 -, issue OF currency Cor in times OF
we '0 10 The automatic return Of said currency
81 needed This would be elasticity plain and
TIE need of money is generally determined
81 ,to Of interest good borrowers with good
h.s-sf are willing TO pay for its use Suppose
-vs-nrnent should manufacture. not Issue,
-hrae or four hundred millions Of currency
Aid entirely apart for and for one
a-lv namely. for leaning On approved security
- ia-,5ereE. legally organized parties at, say,
Irr cent
onisct 70 paying the extra rate OF interest.
- he need was over the borrowers would re-
- no urging, hut would At once pay off the
- The national banks propose 10 put up col
- issue the currency and make the govern
=. si-er-lv responsible. Why bring in the ma
-, nsaks al al? Leave out the super1uous ma
-, II there is any profit in loaning this cur
rri,stion required for the care OF the fund and
e--ssfnE The experience and talent required fr
.ss.r On the integrity Of the borrowers and the
s-o-.rrer of the collateral offered
-,-snr ls;e times the New York Clearing House
- s,a etapo on the judgment of its officers
-.-,s1,r al Of which has been repaid. There
,ss li-tle fuss. 10 red tape, great relief and no
-. r7s5 lie government been in the market with
,7, aaa ~ ready TO loan on absolutely good col
,.-s-s1 Il Is thought by many men Of great
,s-ss7re that no large portion OF il would have
taa- taken a. even CT per cent With s5oo.coo.-
ea IN rsp tie hoarders OF money would have been
active losneTs.
~ bsussrs' commission relates the veto OF q
b-- Of So authorizing issue of s44.ooe.eo OF
s-4sB5scks Such reference seems almost childish
7biuk ef Ie situation in 1913, six years before the
resr1-r.ioa Of specie payments, when il a
osssioa when specie payments cold be resumed
Il zt all when -le country vas full Of wild Green
tscss-s who were in favor Of unlimited paper
money and TO whom financial honesty and integ-
rry Eera Unknown quantities
To-day the government is good for obligations
G. any and a. kinds-just good for obligations
la-lg 10 interest for lis interest bearing bonds
Cord as goId. Good in gold. Could il once be
ss-sGlshed that The government would furnish the
crre-cy needed IN the emergency and that no aid
rpzd b. required from any one the national banks
world le T. the arrangement only as borrowers
sat would b. supplied only as they had the securi-
~ 70 7lt ID DO not cUmoer this idea with de
isA Establish the fact that the government will
NIKE ana hold the emergency currency ready TO
he lOanel when actually required. and a good way
G. iaaring II viii soon come to the front.
When We know exactly what We want TO do it
VII Be comparatively easy find & way to DO it
ne q1est-ou presented is. Shan the government
Do TIE emergency business plainly and simply or
sazI i be done through involved, roundabout ma
tala hank machinery. supervised by the govern
laz and ending u Ii the positive expressed guar
sn1se q Tie so-called national bank issue by the
E0ye-ument2
snce writing the above some parts Of this plan
hzTe been approved by Nj Bryan. This IS hard
5gE-- BIT Il the plan has enough merit il might
ne abe 10 live down even the approval Of Mr.
Bryan JP IT
EeF York, Feb. = 1866