The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-07-29
ALTERING THE PROPOSITIONS,

Glass currency bill. Hopeful announce
mcnts arc made from Washington that
these efforts will succeed, and that the
Democrats win Us n party support this
currency bill.
But that would make il Il Democratic
party measure in place of a banking
and currency measure such as ought 20
be passed deliberately on its merits as
n banking and currency proposition.
Of passing such bill on its merits.
and that this legislative proposition is
frankly 10 be made n partisan meas.
ure, depending upon the loyalty Of the
Democratic party and its big majority
in the House TO pass the bill Need
less 20 say, this means Of passing such
a measure as this currency bill ought
to be are about the worst possible. But
as it is designed 10 be an air cushion
for disasters that may come from the
passage Of the tariff revision. perhaps
partisanship in its framing was to be
| expected.
In the meantime. however, certain
amendments TO the bill have been pro-
posed, and apparently accepted. One
Of these makes emergency notes issued
! by the government redeemable in gold,
in place Of "gold or lawful money. -
In this connection, it is stated by
friends OF the measure. that the gov
ernment's now outstanding S36O,ooo,-
600 Of "greenbacks' ought 10 be re-
tired, since they do not fit into any
currency OF banking proposition at all.
II is difficult 10 see, however. why
they do not At into the currency propo-
sition quite as well as the proposition
TO issue emergency notes by the gov
ernment on the faith OF the assets Of
banks. The "greenback' currency pro-
vides government note issues that need
no bracing up by bank assets. And so
well established is this grecnback is.
sue, that every effort made heretofore
20 retire that issue has received so lit
tie support in Congress that the rctir-
ing project has always been inconti.
nently docked. II is true that the
greenbacks' are government credit
currency; but the credit is that of the
government itself and the proposed
emergency notes need no further Sc
curity than the government faith. If
the government is TO issue them
In response TO the criticism on this
banking and currency bill, that it does
not provide any means whereby the
government note emergency currency is
20 be retired after It's issue. q change
has been made in the bin which would
identify tho notes issued by each of
the reserve banks. and would prohibit
all OF such banks from paving out any
but its own emergency notes. This
would require each bank holding any
OF these notes issued by other banks
20 return the same TO the banks that
issued them. The working OF this plan.
il is supposed, would pile up in the
vaults Of every bank issuing emergency
notes. the issue Of such notes which it
had made, and therefore the bank
would lIkely return the notes to the
National treasury for retirement when
they were found TO be redundant.
Blu, inasmuch as there is in this con
uecton q proposition 20 repeal the tax
upon bank circulation in any form.
the likelihood OF banks returning their
notes for retirement is by no means
assured. On the contrary, If any bank
found itself under currency pressure, it
would inevitably pay out again its
emergency notes. II could not. under
tho change a proposed. pay out the
emergency notes Of any other bank.
but each bank could pay out again its
own emergency notes; and very likely
the profit IN using these notes, especially
II the circulation is not taxed. would be
greater than the supposed tendency
10 send those notes to the L. s. Treas.
ury for retirement
Another change in the bill is nro
posed, that whereas the Federal re
serve banks are. as the bill stands.
authorized 10 deal in domestic and for
eigu bills Of exchange under rules and
regulations prescribed by the Federal
Reserve Board, IL il now proposed 70
make this authority requirement. and
80 change the language Of tho bill, so
that these reserve banks must do this
when required by the Federal Reserve
Board. The idea. however. Of requir
ing these Federal reserve banks TO deal
IN domestic and foreign bills OF e1.
change. when there is no necessity for
their doing so. would seem 10 bs an
arbitrary bit Of tyranny, Of no sdvsn.
tage whatever. but OF possible on
tauglcmout and confusion As applied
20 domestic bills Of exchange. a fair
discount Of banking paper as tho means
Of transferring funds from one district
TO another, is supposed in the original
bill 20 work automatically and accord
ing 10 tho demands Of trade; but ac.
cordiug 90 this change, requiring such
discount on tho order Of the Federal
Reserve Board. whether there is bust.
ness demand for IL or not. seems 10 he
simply in the line of extending the
political power and control over the
banks and currency OF the country
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