The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-01
CURRENCY LAW COLLAPSE.

| when the Aldrlchs Vreeland emer
gency currency law was passed, The
Tribune declared that it was inconslst
ent with itself; that one provision
contradicted another, and that in prac
tice it would he found impossible
to put it into effect. The business
interests of the country. especially IL
the East, were disposed to look upon
it as step IN amelioration of de.
pressed condition; they appeared tt
think that anything having the label
AldrIch'' upon it, must have merit
and accordingly many banks spoke in
thankful terms upon getting the en-
actmcnt. And Apostle Smoot was
especially loud.moutbed in its praise.
But the first thing noted was that
while banks were allowed to go into
combinations for the issue of emer'
gency currency. there was no way pro-
vided for them to get out; while the
Secretary of the Treasury was invested
with extraordinary powers, there was
no way provided whereby he could
exercise those powers; and while
one part of the law provided that the
emergency currency contemplated must
be under the control of the banking
associations in their several districts,
another part of the law allowed every
bank, and each for itself, to deal Gi~
rect with the Secretary Of the Treas
ur,y, and thus get what emergency
currency it wanted And so the banks
and the Secretary of the Treasury
both gave it up; no banking associa-
tions are formed, and the Secretary of
the Treasury has provided no emer-
gency currency.
The Financier, great weekly maga"
zine OF New York, puts the case
! squarely in this way, or the complete
! failure OF the law:
! While the act OF May 3Oth authorized
I tho issue OF emergency currency by Ma
! tional currency associations, the manner
and form OF and security for such enls-
sions being clearly defined, and while the
! provision was also made by this act Tor
/ the Issue by individual banks, members
! OF such associations. OF emergency cur
rency against other classes or security
! than that provided for associations,
| neither associations OF banks nor lndi-
/ vidual institutions are on record az nav
| ing taken advantage OF such provisions;
and emergency notes as such do not. as
! 8. matter OF fact, exist The law OF LAY
| last was so lmperfcctly constructed and
! II contained so many restrictive pro-
! visions that when attempts Were made
1 to administer 10 obstacles were disclosed
! which were nsuUnountable. Though the
| Secretary of the Treasury was given au-
! thority to exercise discretion in so Inter-
! prcting It's provisions as TO make ~ oper-
ative TO limited extent; he refrained
from taking the responsibility or de-
clined to act, and therefore banks were
unwilling 10 acccdc TO the most import
! ant OF Its provisions, which governed or
their regulation. Consequently. this law
proved abortive of Its purpose. and II is
now regarded as dead letter and an
! incumbTance upon the statute book.
That is miserable outcome for
! legislation that was touted so loudly as
measure of relief from the financial
stringency. But nothing bettor was to
have been expected from the ignorant
and forced and hurried attempt to
make showing Of helpfuluess for
political purposes, This is evidently
the opinion Of the FIuaucier, as we
note from its further discussion Of this
matter, urging expert financial men
and practical bankers 20 lend their aid,
as follows:
The ect OF May $oth Is even more
striking Illustration than has ever been
presented In our history Of the crudity
OF the ideas Of the so o-called statesmen
who undertake TO legislate on financial
questions, II also seems TO disclose the
TACT that while these representatives Of
the people have nebulous Idea OF what
! the country needs they founder Ia maze
OF impossible propositions when they
undertake TO give expression. In framing
81 ant n. IN
needs can he satisfied The National
! currency law OF 1862 dealt successfully
with one Of the most difficult situations
that has confronted any country IN the
world, IL, with comparatively slight
amendments. contributed to the financing
Of the Civil war. The reconstructed act
could be applied 10 any statute ior an
entire decade; then the National bank act
OF 1915 was created. with the old cur
| necessary by changed conditions, eff
ciently established the currency for nearly
a quarter OF q century. There Were
statesmen thon who directed the policies
| OF the Government and assisted I'm
framing financial legislation. Even when
heFetical and visionary plans were sought
combAted with energy. the failure 10
prevent destructive legislation. favorlng
me silver heresyi speedily brought about
the remedy. It's iniquitous character he
ing so manifest that the people who hys-
terically demanded the passage OF the law
as veh"mcn'lv insisted upon It's repeal
The act Of 1900 accomplished the pur-
pnse that vas intended; the law was
framed hy statesmen who took counsel
with bankers as they did In 1874, when
the act for the resumption OF specie pay
rncnts was under consideration The
measure of 1900 was not perfect. but il
was administered by a banker. Secre-
tary GaSe, who was the equal OF any Of
his predecessors. and II stands today
without change IN text or efficiency.
] ater legislation on financial matters has
been abortiyc. The reasons therefor are
| clear: politics has been a dominating
! factor In Congress and In executive poll
| cjes: the public interests have been sub
ordinated by political exigcpcies. the
' couns"ls OF bankers, eminent in their pro-
lesSlon and who have made an almost
| Vfr!ong study of the needs o! the country
| ana or remedies that would be effective
tor relief. have been rejected aud the ONLY
, tangible result OF last years financial
leeisIation is prolonged and expensive
1unk"t abroad and the imposition OF n
! currency commission which will he fruit
icss ot benefit. The banking community
nave cause for complaint AT their treat
,nent by the incompetent statesmen al