The Marietta journal and courier. (Marietta, Ga.) 1909-1918, 1913-10-10
WASHINGTON GOSSIP


The one political question that
has always interested me most has
been the money question, and l am
wondering if it wouldn't interest the
readers of the Marietta Journal for
me to write about the currency sys-
tenn of the country and the Currency
bill which will engross the attention
of Congress for the next few months
The Tariff bill having been
signed by President Wilson the Cur
rency measure will now have the
right of way
y s.
Few people think of the several
kinds of money that we have in this
country. 1t is not worth while for
them to do so for it is the we'll set
tied purpose of the Government to
make every dollar the equal of dol
lar in gold
The gold in the Treasury amounts
to about a billion and a quarter of
dollars. Over a billion of this is
represented by the gold certificates,
which are in fact trustee certifi-
Gates for gold deposited in the Treas
ury.
A hundred and fifty million dol
lars of gold is in the vaults owned by
the Government and held as a reserve
fund to redeem on demand Treasury
notes, which are called greenbacks,
the issue of which amounts to "a
little over three hundred million dol
lars. If that gold were exhausted
the Government would issue bonds
and buy more gold, as Cleveland did
in 1894.
The issue of silver certificates
amounts to nearly five hundred mil
lion dollars and is based on silver of
equal amount stored in the Treasury,
but the government would undoubt-
eddy maintain the silver certificates
on gold basis.
The National Bank notes, amount
ing to over seven hundred million
dollars, are secured by an equal
amount of United States bonds,
which, if necessary, could be sold for
gold with which to pay the notes.
1t will be seen that we have sew
eral kinds of money, rather patch
work system, but it is all good and
we have in this Country, l believe,
the largest amount of gold of any
nation in the world.
-
There is on the statute books a
law known as the Aldrich- Vreeland
act, by which there is printed and
awaiting a call from the banks five
hundred million dollars of emergen-
cy currency
This is a form of National Bank
money which would be loaned to
banking associations on proper secur-
ity to meet any sudden demand for
currency as in case of panic. The
rate of interest is such that this cur
rency could be used for only three
or four months, until the scare had
passed. 1t is five per cent to start
with an increase of one per cent a
month until it reaches ten per cent.
This law was passed in 1908 and
will expire by limitation next June.
The fact that it has never beencalled
into use. even in the past Summer
when money was scarce, shows the
strength and conservatism of the
banks of the country.
AS this law is to expire and as it
was intended to be only temporary,
the necessity arises for the passage
of a Currency bin by Congress at
least during the regular session
which starts in December.
s. s. s. s.
The House has recently passed
what is known as the Glass-Owen
bill, which is understood to be an
administration measure and which
has the approval of President Wilson.
Mr.. Glass is Virginia Congressman
and Mr.. Owen is a Senator from
Oklahoma. Neither is regarded as a
financial expert and the bill has gone
through the house under the whip
and spur of party leadership with the
impression that such amendments as
are necessary will be put on in the
Senate.
The main difficulty with the bill
is that it is more of a banking bill
than a currency measure. 1t pro-
vides for an issue of $75O,O00.OOO If
currency to be loaned to banks on re-
discounted paper, but it provides
for this to be done through a new