The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-07-26
TROUBLE ON CURRENCY BILL.

The revolt by number of Demo
cratic Representatives against the cur
reucy bill in its present form is the
most natural thing in the world. These
Democrats do not believe IN the concen-
trated control OF money. They do not
believe in the Wilson bin at all, and
their idea is that if the Government
is going to issue notes, these notes
should be put forth on the phghted
faith of the Government, and not on
assets Of banks. That is, If the Gov.
ernment is going TO issue currency, 1t
should issue that currency on It's own
account aud responsibility, and discon-
meet itself altogether from the banks,
in so fer as it issues currency at all.
Another thing that they object to is
the exchange OF 2 per cent bonds for
the s per cents. Under the Wilson
tariff bill the per cent bonds would
be gradually retired and per cent
bonds issued in place of them. The :
per cent bonds, some 800 100000 Of
them. are used as a basis for the issue
of National bank notes. The per
cent bonds now outstanding do not
have the currency privilege. and
neither will the 3 per cent bonds that
will be issued in place OF the per
cent have any currency privilege. If
the plan of the Wilson currency bill is
fully brought into play, there will be
no Government bond. secured note is
sues at all. The note issues VIII be
based upon the assets of the banks
and of such approved collateral as the
banks can furnish for the notes that
they will issue. This change will cost
the Government ] per cent on sfOu'-
100000; that is to say, the Govern
ment will pay $7,o0o,0o0 year on ac-
count of this "reformed currency
system There may be reasonable
doubt, however, as some of the Demo
cratic members OF Congress appear to
doubt. whether the Government will
get sufficient value received for its
100000 thus contributed annually IN
interest on the higher-rate bonds, to
Justify the expense.
The currency bill provides that the
banks must pay interest on deposits OF
public money at rates TO be fixed from
month to month by the Secretary of
the Treasury. But the proposition to
invite competitive bids for such de-
posits seems to be absurd, since the
repositories would be the fiscal agents
of the Government, and the Govern
ment would get all the profit of the
reserve banks, above the per cent
accumulative dividend on their stock
and the surplus reserve Of 90 per cent.
The proposal. therefore, to charge in
terest on public deposits would thus
be merely shifting of accounts and
would net the Government nothing
whatever,
A very lively fight is evidently in
prospect on this currency bill; and it
IS extremely doubtful il that measure
can he worked through the present
Congress, designed as it is as sort
of insurance against distress upon the
passage Of the Wilson, Underwood
tariff bill That President Wilson is
so urgent for the passage of the cur
rency bill, means that he wishes to
close any avenue Of possible blame
worthlness on account Of the Demo
cratic tariff bill But the Democratic
Congressman evidently have no fears
of evil attending the passage Of the
tariff bill. and so they are not likely
to adopt this safety measure Of pro-
lection which. President Wilson so
streuuously commends. They don be-
lieve that the Federal treasury ought
to be called upon to pay S7,000,00o in
surance against the contingent disas-
ters Of Democratic tariff legislation,
since they firmly believe that no such
disaster, will come