Bisbee daily review., 1913-07-01
THE PROPOSED CURRENCY ACT.

CURRENCSfACF.
 The following editorial from the St, Louis Republic gives a clear idea of the proposed currency act now being discussed throughout the country.
 "The many defects of our currency system may all be summed mp in the inability of the national supply of cash to expand when more money is need. cd and 10 contract when sudden need has passed. Sudden prosperity re guires large amounts of cash to pay wages, as in western harvest fields at this moment. Sudden adversity re quires large amounts Of cash to strengthen bank reserves; when con fidence declines the need for cash in- creases. When these essentially tenn. porary demands cease the additional stock of money must be gotten out Of
 
 the way or it will be source Of weakness and trouble in the business world.
 Our present currency system, by it's cast-iron system of bauk reserves, prevents the amount of cash we have from going as far as it normally would in time of stress. Our present banking system, by it's lack of any provision for centralization of re- sources. has compeIled-or at least permitted-a ceGtralization Of bank ing power by private persons which constitutes a grave possible danger to the nation. as George Baker of the First National Bank of New York ad- mitted before the Puio committee. These are the essential problems which the currency measure just made public by Chairman Glass of the house committee on banking and currency. seeks to solve.
 It is plain from the summary or the birs provisions appearing in the press that the framers of the measure ap- preciate to the full the grave charac- ter of the task of rebuilding the cur -ency system of nation of 95.OOO. .Oo0 people and almost incsleulable wealth. It is apparent also that along with this conservative temper has gone a clear perception Of existing evils and ,he disposition to adopt measures of relief which shall go to the root of them.
 The national banking system the proposed act preserves as nearly without charge as possible. It might be worth while to note in passing that the losses to depositors by tine iailure of national banks last year amounted to about thirtT-seven thou. sands of l per cent of the total amount of deposits. according to statements made before a congression- al committee. No user of national hank notes ever has or ever can suffer loss through them, so long as the gov ernment Itself remains solvent. These facts probably induced the framers oi the proposed act to make almost n, changes m the law governing the in dividuaI national bank. except | tightening up of certain provisions intended to eouhne rational bank more exclusively 10 straight commef cial banking and new provision a to the acceptance of real estate SC carity by country banks, which is evi dentiy inspired by a sense Of our nee' of a better system of rural credits The individual national bank is to b. left ss it is; It's ordinary circulation is to be left as it Is, secured as 1t is But- the banks are to be linked te aether ln . pfF way and new inst tstioh is to come ipto being g4the iE'es eraI Reserve Bank-Nhich will giv tbe local bank resources 1t does no LOW possess in times of strinsene,
 Now let us go back again to th two main troubles with our presen