The mirror. (Stillwater, Minn.) 1894-1925, 1908-03-12

icai as our own writer has told as;
their suspicious are unleashed, and the
run on the bank begins.
The 60th congress is now assembled
in Washington, and one of the ques-
tions before this body is the very one
of which we are striving to make our
self clear, in the short period of time
at our disposal It is a pretty big
problem for either the body of men in |
Washington or in Saltwater, and we |
may both of us have to carry it over
to q assubseQuent session. Something
like two years ago, that great New
York banker Jacob Scheff said in part
before the, chamber of commerce of
that city that tho no present sign
seemed to indicate it, panic against
which all predecessors were mere
child's play, was certain to come.
Crhese may not be exact words and
possibly the two year date is incorrect,
but both are substantially as l have
stately And other great men Of our
public affairs have expressed them
selves to much the same effect. You
with me recalling that President Roose-
welt in his message year ago advised
revision of our currency laws. All
having scented the disturbance afar
off. At those dates neither had Mr..
Scheff, nor Mr.. Roosevelt thought of
gold in over production as having
anything to do with the commercial
horoscope. But both these are in the
nature of prophecies. What we want
is panacea, cure, a preventive.
There is no one who doubts that
something needs attention in our cur
rency laws, and needs it today not
years hence, just after another panic.
There is wide divergence in the
various opinions; but all seem to hun
ger for an elastic currency. hut really
we cannot discuss this point. Cur
rency cannot be so elastic as to meet
the demand under existing statute
provisions. The government acts dis
/ trustfully of its own national banks,
while at the same time lending them
the right to use national to attract the
dear people. But am getting away
from my topic; have tho plan that
would, If put in operation, clear the
atmosphere of panics for all time to
come. The government itself to guar.
antee it's own circulation, and to place
its great reserve to-day our own treas.
Jury has above 900 million dollars in
gold) on deposit with the national
banks on the same terms which they
practice with all their customers
This enormous sum is thus placed in
circulation where it belongs. 1t is alb
surd for wealthy government to de-
msnd Of its people such an enormous
sum just to lock up and report or
hand. Icannot 20 into an exhaustive
argument as to my position, but thinl
it over and believe you. will find thai
my idea is the correct one. Then will
this gold reserve among the people IL
their banks, the government circula
, tion will be backed by the riches of 1t,
own people and the dollar will no
/. fluc.uate.
], A quarter Of q century ago tn,
Farmers Alliance asked for currenc,
based on warehouse receipts of grail
, in store. Today the demand seems t.
! center around some sort of asset sc
I cured circulation. Others want bank
: to issue bills direct, based on deter
mined collateral security. In the sew
: enties l recall the howl for unlimite'
. greenbacks, and in the ninetles "
i heard the silver cry. Gold won, hs
J. served its purpose, and is on trial to
!, day the world over, but, as reserv
j for government like ours, it is abso
: utely useless, and puerile.
J, Ihave tried to show you why believ
Q that it is the over production of goi
t which causes financial crises. 1t
!. certainly . question deserving atter
i tion, aHd unless governments see
r some other method Of guarsntyin
9 their circulation, and thus making
i stable, we will have pauics more FRI
d qnently in the future. It is my ow
9 opinion, and one that express afte
/: mature consideration, that the tim
+ IL coming when the leading goveru
Z ments win agree to clear their 81
f =