The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-06-25
A CHAOTIC SCHEME.

The Tribune on Saturday last made
an analysis Of the reported provisions
of the proposed administration cur
rency bill, which, although tentative,
appears to fit the bill as now reported
80 closely as could be done. We
showed the disadvantages under which
the National banks would be put by
this proposed currency measure, and
stated: "We Judge that mainly the
| State banks and trust companies
| would stay ont of this scheme, and we
| Judge further that National banks
would be glad to close out their bust
ness as National banks and reorga
nizo as State banks and trust com
panies, after the passage of this
bill; since if they were State banks
or trust companies they would be al
lowed to handle their resources in
their own way, and be accountable UNI
der the law for their liabilities" "
This view is precisely that taken,
as reported in the dispatches yester-
day morning, by Charles B. Forgan,
chairman of the Chicago Clearing
House Association, president of the
First National bank Of Chicago. and
one Of the fifteen bankers appointed to
answer questions propounded by Con-
gress with relation to National money
matters. Mr.. Forgan makes public q
statement Of his objection to the bill,
declaring that the proposed law would
turn over the banks affairs to poll
ticians. His summing up is, "I can
not conceive of such chaotic
measure being enacted into law by
Congress. If the National banks
would have such law forced on them,
they would have to give mp their
charters and become State banks In
self-defense. Precisely the same
view as that taken by The Tribune.
The National banks, under this
proposition, would be required to put
up their reserves in the association in
after putting up these reserves they
would have no possible control over
them; as Mr.. Forgan states, that con-
troll would be in the hands of poll
ticians. These politicians being, by
virtue of the Office they might be ap-
pointed TO, custodians Of other peo-
ple's money, and the bankers would
never know, for any length of time,
who was to have custody of their
money. No wonder Mr., Forgan says
that "There is CONSERVATION among
the bankers over the bill -
c
currency, that is even a worse propo-
sition now than has ever been re-
ported heretofore. The Government
would issue it's own notes, taking as
security the credit assets of the bank.
No deposit OF bonds would be required,
but the Government would lend It's
treasury notes to the banks. at their
need. of course for n consideration,
There is no doubt but this comes from
the old greenback currency idea, and
il will be Justly asked, If the Govern:
ment is going to supply currency IN
this way, why it cannot furnish all OF
il, according to the old greenback con-
tention. A mixed currency, partly
from the banks and partly from the
Nation, especially with the Nation
standing ready, at the behest OF poll
t;cians, to flood the country with cur
rency practically unsecured, and GER
tainly based upon Immediately un-
available assets, would surely meet the
condition which Mr.. Forgan describes
as chaotic.
1t does not seem possible that any
such law as this could pass either
house of Congress, on the merits or
dement's of 1t. With the immense
Democratic majority in the lower
house, its passage might be forced
with party pressure; but surely IN the
Senate there should be sufficient re-
sistance TO the enactment of any such
measure as this TO save the country
from its peril.