Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-10-06

| central bank OF all government funds
| now In the national banks. Perhaps
| that feature of the project would be
J obnoxious to the existing banks, but
| it is hoped that they would find their
| compensation in being relieved from
| their present burden of carrying the
whole weight of responsibility for
increases in the circulating medium
| to meet sudden demands of business.
At any rate. there would be no inter-
ference with the most profitable fea-
ture of the banking business, for the
central institution would not receive
deposits from individuals.
The question as to how the business
man is to benefit by a central bank
is sought to be answered by the state
ment that the project included a pro-
vision for the acceptance of good
commercial paper as a basis for the
issue of money such paper would
represent actual transactions between
solvent concerns-all short time cred
its and sure to be redeemed when
ever the transaction, the sale and de-
livery, was concluded OF course,
there would be reasonable coinage
Such. in brief is a bare outline of
the plan, which, with manifold de-
tails, probably win be laid before
congress as an accompaniment of the
report of the national monetary COM
mission. That it will meet with fierce
and prolonged opposition can not
be doubted and this, too, in spite of
the best efforts of the administration
to have the matter regarded AS nom
political. The mere suggestion of
central bank already has suftced to
agitate deeply the great banking in
terests and the line of division be-
gan to be apparent at the last bank
ers' convention at Chicago. Many of
the bank officers regarded the project
with deep suspicion They were told
that no encroachment upon their
business was contemplated beyond the
withdrawal from their vaults of the
governments funds; but they regard
ed the measure as the opening wedge
for the destruction of the most lucra-
tive portion of their business and
viewed with anything but favor the
plan whereby the government bank
was to enter into competition for the
enormous discount operations which
gave them very great influence in the
industries OF the country. Possibly
their objections can, in measure, be
weakened by recourse to some other
means Of securing a basis for the cir
culating notes of the central bank
than commercial paper, such an en-
larged reserve of gold and silver, or
even gilt-edged mortgages on real
property. But these very suggestions
probably would call forth new army
of enemies to combat the PROPOSE
ton for not only small banks, but
of wealthy individuals, find
a large part of their income in re-
turns from mortgages, while the lock-
ing up in government vaults of hun
dreds of millions in coin or bullion
would arouse bitter opposition from
the advocates of the perfectly elastic
currency 1t may be that the exist
ing political parties will be divided
on this great question and that there
will be a new alignment in congress
when it is broached. Indeed. there
is some reason to believe that the
administration would prefer to wage
the battle on this basis, but the one
assured fact that in the consideration
Of this subject conress in the near
future vii plunge into one of the most
and hard-fought contests it
has known since the days of the six
teen to one" struggle