Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1913-08-28
Editor Tells How Money Can Be Obtained.
Continued from Page Two.

there is now in circulation a dangerously small
amount of lawful money
Legal tender circulation should be expanded to
a point at least where it will a relation
to bank currency as of ) per cent legal tender
to SIS per cent bank money. An issue of " bill
lions in federal good roads notes would establish
that relation and provide economical method
of financing nationwide good roads movement.
We have heard much about the governments
inverted pyramid of promises to pay in gold, and
little about the banking SYSTEMS inverted pyramid
of promises to pay in legal tender After it issues
y billions in federal good roads notes. together
with the proposed 500 million of federal reserve
bank notes, if the currency measure is adopt
ed, still the governments financial pyramid will
be less than half wide at the top and nearly
half larger at the bottom than the inverted pyra-
mid of bank credit money.
Such issue would be help to our financial
system it would render it harder for interests
desiring high money rates to artfcially obstruct
credit; or for big contending interests to hinder
free circulation in the hope of forcing a panic and
influencing congressional action against the COM
mon good. The more legal tender in circulation
and the less credit during periods of great political
changes, such as are now upon this country, the
less danger of artificial panics.
l think have said enough on national finances
to show that the proposed issue of federal good
roads notes is not only justifiable but safe and
warranted by the circumstances aside from the
great saving it would effect in interest charges
against the people.
1t only remains to be said that should the gov
ernment sell its fifty-year 8 per cent bonds, as
the congressional committee proposes they will
not be converted into money but into bank credits
1t will be like farmer taking his grist to mill
and paying and a half bushels of wheat for
having one bushel turned into flour; the farmer
having better mill of his at home for it is
a physical impossbility for the banking system of
the country to pay more than per cent of its
transactions in lawful money, 95 per cent of them
must be paid in bank credit
Instead of the government, then, paying 8 per
cent to the banking system for converting the solid
assets of the states, through the government into
liquid assets (for 1T is not matter of borrowing
money but of liquefyng assets), 1 would have the
government perform the liquefying process directly
and without interest charge, just as it has done
before by converting $50 million dollars of govern
ment bonds into national bank currency and as
1t purposes to do in the present administrations
new currency bill by issuing 500 million dollars
more in federal reserve bank notes. A billion
dollars in liquid assets is needed to finance this
tremendous non-productive enterprise. The states
are willing to guarantee payment in legal tender
or gold coin Will the government liquefy this
asset or pay Y billion dollars in toll to the bank
ing system for doing it?
The time is ripe to strike for a nationwide svs-
tenn of scientific highways. The congressional
temper is right and public sentiment is in favor
OF it. If the plan is intelligently worked out and
presented at the coming regular session of con-
Sress am confident measure can be passed
providing for financing the enterprise by an issue
OF billion dollars in federal good roads notes
John P. Irish of San Francisco: "If the speaker
will agree, would like to ask him a question
Mr. Greer: 81 would be glad to reply if my
information will permit"
Mr. Irish: Would the gentleman make his
federal good roads note full legal tender?"
Mr Greer: Yes, sir, think l have already
stated that the notes should be full legal tender"
Mr. Irish: THAT is where the speaker and
myself must part company. The coming of money
is properly a function of the government but the
issue OF promises to pay is no more a govern
mental function than is the signing of checks or
promssory notes"
Mr. Greer: Il think the gentleman is in error
as TO the necessity of our parting company at that
point 1 agree fully with him that it is no more
proper government function to issue promises
to pay than for the government to sign checks
or promssory notes. | think, from the form of
the gentleman's question, however, that he has
read after Mr. James K. Lynch of the First Ma
tonal Bank of San Francisco. AT least that is
the view he announces in commenting on the pro-
posed Owens revision of the currency measure
now before congress- Possibly the true point at