The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-09-29
Banking and Currency.


Banking and Currency.
along with thousands OF other
business men, was sorely disap-
pointed that congress adjourned
without doing anything to remedy
our present unscientitc, inadequate
and unsound banking and currency
LEGISLATION. The 1907 panic was
largely banking panic, and the
1898 panic might have been far less
severe. had our banking and none
tarv laws been more adequate. Must
we suffer from still other panics De-
fore we learn our lessons? NO other
important country experiences sucn
frequent and severe panics as does
this county. In no other country Is
the currency system based upon and
limited by the country's bonded in
debtedness. In other countries there
Is full cooperation between the ordl-
nary banks so that they rediscount
each others commercial paper, ana
the total capital of all the banks IN
all parts of a country is utilized for
the benefit OF all the industries IN
eall parts of the country. Moreover
in most other countries the banks
issue notes based upon business as
sets. The Canadian and Scotch cur
rency systems are especially elastic
and good. Money stringency is prac-
ticallv unknown in these countries,
because the entire commercial assets
are available as basis for currency.
Thus. by means of rediscounts and
OF we'll safeguarded asset currency,
int q SUBSTANTIALLY
the same in all parts of most other
countries, to the great benefft OF far-
mers and business interests gener-
ally.
I'm my opinion, one OF the great
causes of great industrial corpora
tions and Of centralized wealth and
power in this country is found in our
present banking and currency laws,
which make it comparatively easy
for some classes of producers to OBJ
tain credit in the vicinity OF our
great national reserve banks and
very difficult with other classes OF
producers to obtain credit in their
localities no matter how good their
financial standing or commercial as
sets. Our banking facilities should
be available to all alike, Merchants.
manufacturers, shippers, farmers and
miners should receive as favorable
treatment as do holders of stocks
and bonds. We should not be be-
hind other countries in these mat
tiers.
"Our present Aldrich-Vreeland
emergency currency law is but tenn
porary makeshift so hedged about
with restrictions that it will proha-
bly, not be utilized at all until call
rates for money exceed 10 per cent
for some time. Even now our gov
eminent Ia contemplating renewinx
the bad practice OF depositing Its
millions of treasury gold with our
national banks to keep the interest
rate from soaring during our crop
moving period"
Concerning the political outlook
Mr.. Douglas said:
Nothing. In my opinion, has been
gained by court proceeding against
monopolistic combinations. No anti
trust decision has ever benefited con-
sumers. II deprived of their tariff
and other special privileges that give
them their monopoly power. great
Industrial corporations would be
harmless Indeed. they would be
likely to benefit consumers by giving
them cheap goods; to benefit labor
by providing steady employment at
stable wages, and to benefit inves-
tors by providing a safe investment
for savings.
"If Woodrow Wilson is elected
president on the. 9Th day of next
November. which today seems assur-
ed, believe his administration will
show to the people of this country
his fitness as leader and that rare
quality OF craftsmanship which is
needed more at this time than ever
before since the foundation OF this
republic Boston. Mass Globe.