New-York tribune., 1908-05-19
GARFIELD CURRENCY" :"
Director NesceN Explains Issue of
Reclamation Scrip.

Washington. May 1S-F. H. Newell. director of
the reclamation service, called before the SEN
ate Committee Irrigation this morning
plain the issue of what Senators have named Car
field currency, after the Secretary of IL Interior
who is the sole designer and patentee of the new
government token money which is circulating in
the Far West.
Mr. Newell told the committee that The reclama-
ton service, with the approval of the Secretary of
the Interior was Issuing this sort OF currency, but
said that inasmuch 1t only obligated the govern
ment to meet its liability in 1t not
money within the meaning of the iaw-only watered
stock. so to speak The director said the reclama
ton service had money. but enjoyed abundant
credit Therefore # able to facilitate the work
OF various water associations by indorsng their
notes, payable IN water and paid out for labor and
dependent on sufficient rain. In this way numerous
collateral irrigation bitches from federal projects
are being constructed. and while there is spe-
cific legal authorization of federal Endorsement
or the assumption of liabilities not authorized by
Congress. there being no specific prohibition in the
law, the attorneys for the Interior Department
sarded themselves we'll within their rights IN
advising the Secretary TO issue the token money
and later redeem 1t with water.
1t Is the most socalistic departure this govern
ment has ever engaged il.' said one member Of
the committee to-day. 1T is precisely the scheme
advocated by Beilamy in. Looking Backward the
issuance of a certificate of Indebtedness in the
name Of the community Cn this instance of the
water right company, with the governments in
dorsemenD in acknowledgment (paynent) of la Dor
performed and redeemable in commodities, in this
instance in water. Mr.. Newell told there
none of this token money in circulation,
paratively little had been issued thus far, but how
long do you suppose 1t will be before the stores
are flooded with II? For instance, suppose that
farmer performs services to the amount of $500 and
receives therefor Garfield currency When the
water is turned he will begin pay his water
rate in ten equal annual instruments Assume that
his first payment is 500 What will he do? Why.
he will take his $50 certifcate-they issued in
all amounts-to the government agent and cash il,
pay his $50 and receive certificate for $3.50 in ex-
change. He more money for water for
year, he needs cash or he will take
his certificate the store and cash it at. say 10
per cent discount. He will get credit in grocer
les and feed of s405 The grocer will hunt for a
man who larger water rates-say $50. He
will sell the certificate TO him at say per cent
discount or s.27 The storekeeper makes so 50
on the transaction besides the profit s405 worth
of goods II is a beautiful scheme-for the store
keeper
The Irrigation Committee seems at loss what
70 do in the premises AS il is so late in the ses-
sion the members fear they cannot get any action
bv both houses of Congress. Individual Republican
members however. purpose to see Secretary Gar
field and urge him to suspend this branch of D-
rector NeweITs activities until the next session of
Congress There Is also some apprehension. ap-
narently that the reclamation people will raise
the cry of politics" II any attempt is made to In
terrere with their operations. and that this may
work against Senators and Representatives in the
coming election.