Daily press. [volume] (Newport News, Va.) 1896-current, 1910-12-09
SUFFICIENT ASSETS IS
GIVEN AS The REMEDY
Mr.. Roberts Declares the Way Bust
ness Is Done Through Clearing
Houses Is All Right and Proper, But
Machinery Is Necessary to Back Up
the Financial Institution.
(By Associated Pross)

tBy ASSOc.dtcd frCSS)
PHILADELPHIA. PA, Dec. S.-"The
Need For Currency Reform" was dis
cussed by Senator Aldrich, chairman
of lhe National Monetary Commission; \
Senator Burton, a member of the COM
mission: assistant secretary of the
treasury and a former secretary of
the commission, and Director Roberts,
OF the mint, at a special session at the
Academy Of Political and Social Sci
ence held here tonight.
Director Roberts, IN his address.
said:
The most encouraging feature of
this campaign for more scientific
currency system, is the fact that it
is now generally admitted that some
thing is seriously wrong in the pres
ent system. 1t has always seemed 10
a great many people that if all our
money was good and the supply in
CT easing from year TO year in what
appeared to be an adequate amount.
nothing more was TO be desired No
body can say that a monetary stock
OF $50 per capita is not. on general
principles. large enough. or that an
increase from s2s to s35 in ten years
OF the controversy. The contention
is sor an elastic element in the cur
ren@y, and elasticity means confrac-
ton as well as expansion. There must
be contraction after expansion, in or
der to regain the power to expand
again.
Needs Not Known.
Then. again, it has been a COM
N 81 l. ho
ton Of the government TO furnish the
money of the country. and that the
bank should have nothing to do with
the supply: that they should simply
receise money on deposit and loan Il
or DAY ii out on demand
This sounds plausible for undoubt-
edly Il is the function of the govern
ment to define what shall be legal ten
. der, and to supervise and safeguard
the currency supply, but neither the
government nor any other body can
determine in advance how much
money will be required from time to
time. No authority can determine how
much money the people of this coun-
try will want 10 use or to handle in
the year 1911. Nobody can tell with
in hundreds of millions of dollars what
yer, OF what proportion of that bust
ness will be handled by means of pri-
yate Instruments of exchange or what
portion will require cash: nor can any
one tell how much of the SIG. 0d0. 000.-
900 OF bank deposits may be called
for in cash at any time All of these
demands are uncertain and fiuctuating
and they ar edirected not TO the gov
eminent. not to the officers Of the
treasury, hut to the banks. II is the
province Of the government to-super-
wise the supply. but the demand &C.
tually falls upon the banks. and the
supply must be afforded through the
banks. ~
Not Money Payments.
The fact IS that the great bulk of
the payments in a country like the
United States are net made in money.
Money has become the small change
Of the business world The drafts and,
checks that represent the payments
of commerce meet IN 7he clearing
house and practicslly offset and cancel
themselves. Nineten;hs Of the so
called bank deposits are not made in
money, but are simply credits that
arise in the exchanges. They are paw
able IN money and on demand. but II
the hanks are called upon te liquidaie
an undue proper ion Of them at any
time. IL simply can not be done We
fall into Just such a deadlock as We
had in 1907.
The South. for example. at This
season Of the year. hv the sale OF its
cotton crop. is creating heavy cred
its. or deposits in New York and
cher cities. In The usual order OF
ereu's these win he drawn upon 20
pay fof the Sonih's purchases out
side. and the entire exchange will be
eferfed by the handling Of compare
lively ii-le money. n the South should
attempt 90 withdraw ali Of these de
posifs IN cash. il would disturb the
financial equilibrium Of the whole
world
Not ocne With Cold.
50 when 2 man says ne does not
bciis'-e IN an elastic currency. or that
II al or money Is a. good as gold
nothing more IS required. or that the
banks should have nothing 70 DO with
issuing currency. hc ovcriooks tire fact
thai tho business ~ tho coanfry e NOT
DONG With geld. or with any kind OF
r1on7v buf ~ mems 81 hank credit:
and when this crcdii receives a shock