Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1913-08-14

government" and should not be dele
gated to banks. 1t all depends upon
the point of view from which one. con-
siders this question or, for that matter,
any public question.
President Wilson, In his letter of ac-
ceptance and in his speeches, reiterat-
ed his determination to look at all
questions from the standpoint of the
people rather than from the standpoint
of the privileged few. This was the
central theme of his addresses and he
can not well depart from his position
in the framing of a currency law, es-
pecially since the Democratic party has
never deviated from this position in it's
platforms. If currency reform is to
come under Democratic President, a
Democratic House and Democratic
Senate, it must come along lines in
harmony with Democratic history and
doctrine.
The bill involves three fundamental
principals:
First-notes issued must be issued
by the government and not by the
banks.
Second-The issue must be controlled
by public servants and not by private
institutions or by private individuals.
Third-The emergency currency is
sued must be issued through state
banks as well as through national
banks.
The bill as prepared observes those re-
quirements. The right of the govern
ment to issue money is not surrender
ed 20 the banks; the control over the
money so issued is not relinquished by
the government; and national banks are
not given a monopoly of the benefits
flowing from the issue of these emerg-
ency notes. The people, having safe
guarded their rights in the three par
ticulars above mentioned, can afford
to deal literally with the remaining
provisions of the bill The regional
reserve banks will prove of great ad-
vantage to business. Each reserve
bank will be commercial center and
this center will bemuch nearer to the
extremes than the few large cities are
to the banks which have been compelled
to reach. the public through them.
These regional reserve banks will give
to the Individual banks a security for
their reserves that is lacking under the
present system "a security which will
go far toward preventing panics.
The national banks, however much
they may be inclined to object to the
extension to state banks of the right to
borrow emergency treasury notes, will
find this bill so advantageous as to
make them willing to accept its provis-
ions. The right to borrow treasury
notes on an equitable basis, without
having to put up bonds. is distinct
benefit, and yet a benefit which can be
granted with advantage to the com
munity represented as well as with
safety to the government. When
bank is compelled to put up bonds as
security, it has already parted with as
much money as it can possibly borrow
upon them. Hence bond basis reduces
to minimum the advantages to be ce-
rived from borrowing.
Why should the government require
bonds as security for the loans to be
made when the other security provided
for is adequate? The government can
have no interestsin prescribing onerous
conditions to the banking world. The
regional reserve bank, representing as
it does the banks of its district, would
be financially good for the money bor-
rowed even if it was not required to
put UP specific security. but its security ia
made greater by the fact that collateral
will be put up to secure each of the
loans.
1t is possible, under this plan too, to
provide immediate relief to any section
of the country and thus cure in the very
beginning a condition which, if allowed
to continue, might precipitate panic.
1t is not contended that the bill is
perfect in detail, No one, or even a
few, can hope to draft=any measure up
on any important subject which will in
every detail be satisfactory to the 500
Senators and Representative who must
pass upon it. Whatever defects it may
have will be brought out by discussion
and cured by amendment.
But considering the principles invol-
we'd, who can afford to oppose so wise
a measure as that now offered? Not
the general public, because their rights
are fully protected. Not the state
banks for they come, for the frat
time, into association with the national
banks in the enjoyment of accommo-
dations furnished by the government.
Not the average national bank, because
the President plan is to it life pre-
server. Who, then, can object? Only
two classes: Those who dispute the
right OF the people to issue through
their government the money which the
people need. and those who, distressing
ne representatives chosen by the peo-
pie to guard the public welfare, would
deny to government officials control
over the issuance OF emergency notes.
Panics are4easily among the most hor-
cible of tragedies of national life be7
cause they are contributing cause to-
ward disaster, calamity, adversely and |