Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-08-05
CURRENCY REFORM AND TIGHT MONEY

turnout the country and loans exceed
ingly difficult to obtain at the Very
season Of the year when business is
normally in need of the greatest
amount of bank loan transportation
the defects of our present banking
system and the urgent need of action
by the present congress become mat
ters Of general public interest.
Congress has banking and cur
rency reform bill before il and the
president is determined that something
shall be done in the way of reform
but the trouble is that the democrats.
always tinctured with fiatism in the
traditional philosophy of their party.
have devised bill which scares the
hard money bankers and instead of re-
ieving the country's business conges-
ton with the prospect of freer bank
ing the present bill is responsible for
much of the tightness that has become
So acute.
The fundamentals over which the
democrats and the banks disagree are
as 10 note issues and control of the
federal reserve associations. The dem
ocrats fearing that the bankers would
obtain a death grip upon the money
ana the business Of the country have
provided that the president shall an
point the board which shall direct the
AFFAIRS OF the federal reserve associa-
tons. The bankers believe that the In
terested banks which put up the re-
serves should name bankers from their
place their funds within the control Of
political appointees.
| The democrats desiring to protec, ALL
OF the people from any manipulation of
the money market by self interested
bankers have provided that the govern
ment shall issue all Of the currency
when the bankers wanted an asset
bank note currency to be issued BY the
reserve banks in response to actual
business needs and based upon the
ability Of banks to pay from the prom
ises of the business public which in
turn are secured by actual property.
There is little doubt among students
of finance that an emergency or ba nix
note currency should be issued nv the
banks themselves and be guaranteed
| by the banks just as banks now are
back of bank drafts and personal
/ checks. bank note Fundamentally is
blank bank draft made out in con-
Venient denominations and payable 70
! bearer. Its function is to provide a
quick substitute for currency when
needed without Initiating the country
with money when not needed. If issued
BY the banks it will be retired by the
banks. 1t VIII always stand ready as
an idler to take up the slack In the bel:
/ OF commerce. With it the belts will
not slip and stop the wheels Of trade
There is no sound reason for the gov
eminent issuing bank note currency
direct. 1t should merely regulate its
issue as it regulates all banking op-
erations.
AS to control of reserve associations
the bankers themselves must admi,
that there is grave danger in entrust-
ing absolute power over the money OF
the country to one set Of men skilled
and experienced as they may be. It is
true that the bankers as a class control
most OF it now but they are disorgan
lied. 1ndividualism rules among then
which keeps them close to the public
as competition does In trade. To merge
them and consolidate them into re.
gional reserve associations is to Gre
ate legalized bankers trust and there
must be no small amount Of care exer.
gress should not ask the bankers to pu,
their money absolutely within the con
troll of political appointees nor shoul1
the bankers ask congress to turn the
country over absolutely to them. A
joint board Of bankers and government
officials must be devised.
But whatever is done should be done
quickly or the patient will die while
the doctors in consultation disagree
Tightness at the banks. has becom.
acute and unless relieved shortly Their,
will be closing down Of mills, unem.
ployment and hard times for which
there is no economic occasion at thiI
time