The midland journal. (Rising Sun, Md.) 1885-1947, 1913-07-11
FRIDAY. JULY II. 1918.
Mr.. Bryan on The Currency Bill,

Asr. Bryan On the Currency Bill.
The currency bill. prepared by Chair
man Owen, Of the Senate. and Chairman
Glass. Of the House, in conjunction With
President Wilson and Secretary McAdoo,
Is now before the country for discussion.
1t is known as the Presidents bill, be-
canse his influence was paramount in
reconciling the differences existing be-
tween those favoring currency legislation.
The president, 10 his message to Con-
gress, urged immediate action and WIS
delicious in ,hs language that he eui-
ployed. He poin ed ont the need Of leg
islation which will enable the business
world TO make use Of it's securities ID
times Of emergency.
The first question to be considered is
whether there should be immediate leg
islation. II would be hard to answer this
question in the negative. in view Of the
fact that the need for cnrren-y legislation
has been emphasized IN every quarter
and by all who have cared to EXPIRE S
themselves on the subject.
As matter of fact. the Fundamental
principles involved in currency legislation
are so we'll understood that no delay,
however extended, and no investigation.
however thorough. would he liye'y to
change the minds of those whose duty ii
is TO act npon the matter.
When the bill is considered npon its
merits, one at once realizes that ii ii
written from the standpoint Of The PEG.
Pile rather than from the standpoint Of
the financiers. The latter are quite unan.
imous in the belief that the issue Of
money is "a junction Of the banks" an
that ''the government ought not to 60
into the banking business Z The demo:
cratic party, however, has consistently
taken the position that the Issue Of
money Is "a function Of the government
and should not be delega ed to banks II
all depends upon the point of view from
which one considers this question CT. for
that matter. any public question.
The bill involves three fundamental
principles First, The notes issned must
be issued BY the government and not by
the banks. Second. The issue must be
controlled BY public servants aud no. by
prisate institutions or Individuals. Third.
The emergency currency issued must b.
issued through state banks as well as
through national banks
The bill as prepared observes these
three requirements. The right Of gov
eminent to Issue money is not snrren-
dered to the banks; The control over the
motley so issued is not reiinqpished by
the government; and national anks are
nat given monopoly Of The benefits
flowing from the issue Of these emergency
notes.
The regional reserve banks will prove
OF great advantage to business. Each
reserve bank will be commercial center
and this center will be much nearer 10
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 q security for their re-
serves that Is lacking under the present
system--a security which will 90 far
toward preventing panics
TIE right to borrow treasury notes oil
an squitable basis. with ut having 10 put
up ,onds. is distinct benefit. aud yet
benefit which can he granted with adj
vantage TO the community represented as
we'll as with safety TO the government.
When bank is compelled to put up
bonds IS a security. II has already parted
with as much money as Il can possibly
borrow upon them. Hence houd basis
reduces to minimum the advant ges 10
be derived from borrowing.
The regional reserve bank, represent
lag as Il does the banks OF It's district,
would be financially good for the money
borrowed even if il was not required 10
pul up specific security. but its security
Is made greater by the fact that collateral
will he put up to secure each loan.
1t is possible. under this plan to pro-
ideimuediale relief TO any section of
the G untry. and thus cure in the very
beginning condition which. il allowed
to continue. might precipiiate panic.
II is not contsnded that the bill is per-
feet IN detail. No one. or even few,
can hope 10 drsf. any measure npon any
important subject which will in every
detail be satisfactory 10 the 500 senators
and representatives WHO mus pass upon
II. Whatever defects /, may have will be
brought ous by disc ussion and cured BY
But. considering the principles insol-
we'd. ~ho can affnrd to oppose SO wise
measure IS that now ofered9 No, the