The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1913-08-05
Mr.. McAooo AND The BANKS


1t is a pity that SO good man asd
an official as Secretary 3IcAdoo
should fall into the ways Of the ghost
.ancers on the subject Of the currency
and set UP al sorts of suspicious and
ccusations Of conspiTacies to disturb
the credit of the country, at time
when wise and helpful courses are SO
realty needed to bring conditions
around to safety and security. His
charge that the great banking inter
ests Of New York have conspired TO
deprcciatc the value 81 the two per
cent government bonds is NOT easy OF
specification or proof, and it does not,
moreover, stand to reason II he can
prove his assertion, OF course, that is
mother matter, and having laid the
Indictment he should adduce the evi
dence Failing that his charge can
not be regarded as otherwise than
reckless and mischievous.
It cannot be contended that tho two
per cent bonds are attfactive/ invest
ncnts at par value. The only market
or the securities is with the national
banks, which may use them as Sc
urity for circulation issue or for de
posts and without these privileges
anything near par value. The cur.
.ency at first proposed to exclude tho
iriv.lege of circulation security from
he bonds, but an amendment has
Deen made to the bill restoring this
feature. IT is scarcely to be wonder
d at that the bonds fell off III the
ice of the elimination of the priyi-
ege attaching to them. nor could 1t
he expected that they should recover
.,heir value Immediately upon the pro
pcsal Of the amedment to continue 1t.
rho bin has not been accepted even
by the majority party in congress, and
the form in which 1t viii finally
be passed. That the change in the
haracter of the bonds should have
,een contemplated is sufficient evil
lence of the possibilities OF deprcci-
.ticn by the law of the value of the
securities to have its effect upon the
market, and might very we'll aetbttnt
or the falling off in price without any
such conspiracy at the secretary Of
he treasury alleges.
II, however, the banks have consair
d to depress the value of these
bonds, how does Mr.. McAdoo expect
o get even with them by permitting
he banks to return them as security
1t Ter va,ue? Why should the
banks not be made to bear the penalty
II their alleged act by losing the mar
lin OF security they may have re
duced? What right, in point Of fact
las the secretary OF the treasury to
TX the Yalue OF bonds st par that are
selling considerably below that on the
market 1t is very peculiar pro
seedng and argues rather eff stubborn
emper than of financial wisdom ut
he heads of the treasury department.
II is all very wen sor Representative
Ienry of Texas, and the coterie of
Democrats that is oaVorting with him
10 cut CAptIS ubOuJ tliS tui ithNsf Uut
Il Is, for all that, very serious CUES
ton that is being dealt with and IL
should be handled in a serious and
sensible way, with the object of
smoothing out tho rough places ana
providing basis Of operation that
viii establish credits and allay TN
easinesa. rather than stir suspicion
and hard feeling. Secretary McAdooI
can Go Il great deal better than he is
donig to bring about a reasonable co.
operation between the banking IN
terests and the debtor class" and
he owes it to the country to exert
his abilities in better lines than he
has cast them in his recent Gctiyi-
ties
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Ill ft, ha