The Washington herald., 1913-06-22
THE PROPOSED CURRENCY BILL HAS SPLENDID features

ment officials as to main things-Hereto-
fore one Of the chief arguments against
the direct issuance of currency by the
government has been the claim that the
placing in the government of a discre-
tionary power TO issue IL would be plac-
ing too much power in its hands: but oy
laying down the rule that no currency
shall be issued except when IL Is needed
to maintain the average OF prices there
is taken away all discretionary power to
go wrong.
Take the present situation, for example.
for the past few months the business Of
the country has been needing E7Ivrs bEpk
credits, or more currency and bank
credits, the need being shown in a falling
price level but the fear of many people
has been that when the new currency law
should be enacted 1t would b. If such
character as to leave with government
officials a discretionary power TO Issue
currency and thereby result liz 4 perua-
nent imitation of its volume. and thus
raise the price level That Is not to be
IL the proposed bill become a law Tie
command is that the national board shall
SC control the volume of currency in cir
culation as to promote "a suitable price
level
Space will permit only a very brief
enumeration of some of the other prin-
cipal features Of the proposed law.
The control through the national board
is to be fully in the appointees of the
President. Therefore. the bankers will
not he in control For the past forty
years or more the leading speculative
bankers have controlled TO a limited ex-
tent the volume of money and credit.
and thereby have controlled, within
somewhat narrow limits, the price level.
For example. the stock market has been
controlled within narrow limits bv con-
trolling the rate for money Thus. the
few on the inside have traded on what
in many respects was a certainty That
Is not speculation, il is using loaded dice.
and thereby vast fortunes have been
piled up. Under the new regime the
loaded dice in Wall Street are to be
cast aside.
Also. under the old regime. our BUSH
ness men and the country's affairs in
general were subject to a strinS.n,
money market whenever a foreign gov
eminent saw ft to reach out and take
10 itself or within its borders any CON-
siderable volume of gold. gold being a
weapon OF war: and foreign bankers
have been able at will to raise money
rates within our country; and so have
the great foreign Spectators: but THAT
can no longer occur should the admins
tration bill become a law. The national
board will be in duty bound to 50 issue
ana Withdraw the currency that sta
bility In the money market. and thereby
stability in the price level win be main
tanned.
Quite likely there are minor details in
the bill that will be changed BY the
Rouse committee on Banking and Cur
rency' ana the House may change what
me committee suggests, and the Senate
Committee may propose alterations. and
so may the Senate. for free and fair
debate and opportunity to amend Are
part OF the programme But that son,s-
thing should be done. and in the near
future, is clearly apparent. The bank
ers are refusing to take out the needed
additions to the currency. for which
they would have to pay at the rate OF
fering.