The river press. [volume] (Fort Benton, Mont.) 1880-current, 1908-04-01
in the wrong direction and tend

move in the wrong direction and tend
to dlsarrange values to a great extent.
Therefore as substantially 25 per cent
Of the coin held by four of the leadin.
nations OF the world is silver. we con.
tend that our reserve should be held IS
per cent lii gold and % per cent in sill
yer. That coin is both gold and silver.
"Ihus far we have procured theo.
retically Il uniform currency. protected
by n coin reserve. How about its flexi-
bility: How are we to issue new cur
rency or withdraw the old as required?
The stock Of money in the United
States Is something over $4,000, OOO, 900.
OF this sum $3.50, OOO.O 600 Is in coin or
coin certificates. and Of the coin ST.
6OO'OOO.OOO is in gold and some $780,
100000 is in silver. $780, 10000 is in
legal tender notes and over $5O0,O00,-
600 Is In national bank notes. All Of
the above should be converted into q
new form Of government note. except
Ing the 40 per cent reserve to be held
In the treasury. being practically the
percentage Of reserve now held BY the
banks and the treasury. This could be
done without the least possible fric-
ton or disturbance and without the
expansion or contraction Of a single
dollar.
ITO increase the amount the govern.
ment could authorize the banks or
others to deposit securities against
which notes could be issued. Railroad
bonds and bonds Of other corporations
which are subject to great deprecia-
ton and appreciation should not be
used as such security, but the class of
bonds so deposited should be Of a pub
lie character, such as municipal, coun-
ty and state, all to be carefully select
ed with a good margin Of security,
subject to a graduated tax as the cir
cumstances warrant. forcing their
withdrawal when no longer needed.
Public securities could be lodged in
advance with the governors or COM
m%issioners that they could be availa-
BILE as security for circulation at al
most a moments notice.
ITO avoid an accumulation Of funds
In the treasury in excess of the amount
required for the reserve and a working
balance. deposit any surplus In nation
al banks under the directions of the
governors or commissioners, taking as
security the same class Of bonds as
would be acceptable for an emergency
circulation. The governors or commits.
siOners should fix a rate Of interest to
be paid upon such deposits so that
whenever there Is a redundance of
money the bank. in order to stop the
payment of interest, could turn the de.
posits into the treasury. where they
could be held until again needed. Its
action would be entirely automatic.
1.-The process outlined above would
enhance the value of all classes OF
bonds issued by the people, lower the
rate of interest on the same and
would be a healthful stimulus to the
development Of all public works.
"Our aim has been to formulate a
plan whereby the currency of our coun'
try can he placed beyond the realm o!
politics, out of the reach of me who
might manipulate ii for private ends
to give a uniform and flexible circu
lating medium with Il percentage OF
coin reserve larger than almost an!
other nation and backed by the Cos
given u of n country uneQuul
ed in the history Of man, the develop
ment Of which is still in its infancy"