The chronicle=news., 1913-06-24
CURRENCY REFORM
Mo0TED QUESTION

| flucnce and II very intimate political
friend OF William II. Seward--pub.
llshod an article which embodies the
results Of prolonged and thoughtful
study In this country and In Europe.
At that time agitation had begun for
tariff revision with Intent to modify
or alter the rates In the Morrill, tar
iff measure. which was enacted Ia
the early part of the Civil War. Gen
eral Webb was persuaded that there
could be no permanently satisfactory
adjustment OF the tariff to ressop.
able American business Interests and
OF such u kind .as to provide adequate
Government revenue unless there
were simultaneously the establish
mcnt OF our banking and currency
system upon the soundcst of pria-
c!plcs. General Webb insisted that
n wcil-pcrfected tariff law and u
perfected banking ind currency sys.
TEN would each supplement the 9th.
.r. and both together would 10 hand
In hand In NO far ns American pros
perity was concerned.
II has been for some time the opin-
ion OF those who were presumed To
have good understanding OF what the
purposes aud views of President
Woodrow Wilson are that some weeks
before he was Inau:urntcd ms Prcs!-
dent he became convinced that rcne-
dIal tariff legislation. In order to nc-
compiIsh tho perfect work which he
planned. stood In need. also. Of rem
edial banking and currency reform.
For this reason some Of President
Wilson's friends have expected that
he would at the first opportunity
make known TO Congress his reasons
for recommending that at the same
session In which new tariff law was
enacted there should also be enacted
new currency law. which. even
though II would not be regarded ~
completely satisfactory. would serve
to pave the way for perfected leG's-
lation ut later date.
President Wilson IL spoken OF here
as acting In sympathy with the view
taken by both his predecessor. Presi-
dent Taft. and also TO some extent
with tho view taken by President
Roosevelt. Colonel Roosevelt 10 quot
ed as having said TO his friends on
visit to ST. Louis two yearS ago
that finance was one subject oi
which he knew little or nothing.
Finance was N much \ mystery to -
1t was supposed to have been 10 Presi-
dent Lincoln. hut he knew the tenn
per Of tho American people. and hc
was pcrsudadcd that they would not
be willing to accept any measure for.
mulatcd for pcrfccting our banking
and currency system II II were idcn-
titled with the name OF Senator Al
drich. Colonel Roosevelt means by
this statement, that II was vital. II
the currency system were to be per-
fcctcd, that political as well as eco
nomic question questions should be
carefully considered. Il
President Taft warmly recommend
ed action by Congress which would
tend to improve our banking and
currency system.
It seems now to be established that
no currency reform measure ident'-
fled by the name OF Senator Aldrich
is possible. and yet there can be. II
is thought, no Improvement Of the
currency system unless some Of the
fundamental principles embodies In
the report Of the National Monetary
Commis ission be accepted.
In some parts OF the country there
seems to prevail very strong public
sentiment In favor OF the absolute
and exclusive control by the Govern
mcnt OF the machinery for issuing
money or It's paper representative.
and not only this. but. Furthermore.
the exclusive employment OF Govern
ment-issued money. thereby putting
the national banks In the United
States in the same category as are
the state banks. Yet the great fin
ancial heart of the world. which is
London, does not know any such
thing as ISSUED money.
1t is thought here to be extremely
doubtful whether the House OF Rep
resentatives at Washington would
furnish majority sufficient to pass
n bill which made the Government at
Washington an exclusive issuer OF
money; but bill OF that kind could
not get through the senate. Appar-
emily President Wilson is anxious to
secure at this session of Congress at
least partial legislation whereby
bank reserves can be maintained
within certain regional districts and
by means of which the quality OF