Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1913-12-26
COMMENTS ON
CURRENCY BILL
Beneficial Effects Of New
Law Incalculable. Eman-
cipaton Of Credit
HIGH LONDON OPINION
Gives the Government Con-
troll Of Money Instead
of Wall Street

When President Wilson signed the
administration currency bill Tuesday
he signed an emancipation proclama-
ton for the credit OF the nation which,
under the obsolete and inadequate
currency and banking laws, has been
held in control by few great fl
nanciers who have used their power to
subjugate business and industry in
many branches. The new measure
places the United States in control of
that which has been controlled by q
group of capitalists and spreads the
bank reserves all over the country
instead of allowing them to be con-
gested in New York City.
The first effect of the new measure
will be to set fre a large amount of
gold and legal tender and render the
sums released available for currency
and additional loans. The banks in
the future will have to keep a much
smaller reserve against their de-
more than $7,OOO,OOO will be released
for active use. The second direct ef-
feet will be provision for more
elastic note circulation in proportion
to the gold held. A provision by which
nearly SO in notes may be issued with
backing of only 81 in gold will en-
lob b1o tho Initial Ctofoc fo provido II.
with very large amount of notes
without increasing it's existing gold
reserve.
Sir George Paish, editor of the
London Statist, who has been visit
ing in the United States, and who is-
recognized as one of the greatest
financial authorities in the world, says
with reference to the new law:
The main function of the new
federal reserve banks may be to
hold the reserves of the national
banks and to issue notes. By
means of the deposits of the ma
tional banks the federal reserve
UduhS Will TtCClVO SulIlCleut
quantity of gold or gold certifi-
Gates to enable them to set up the
necessary reserves and to issue
large amount of notes. Indeed,
it is evident that the federal re-
serve notes will gradually take
the place of gold certificates in
nj hat hn Init
States will need to import no
gold from abroad or to retain for
currency or for banking the gold
produced by their own mines for
many years. The importance of
this will be evident when it is
realized that the gold certificates
in circulation in the last ten years
have increased from $377,O00,000
to $1,008. 100000, an increase in
single decade of not less than
$631 100000 or at the rate of
over 100000 sterling per an
num- At the present time the am
cunt of gold in the treasury, gold
certificates in circulation, against
which gold is held in the treas
ury, and coin in circulation, is
computed at $1,S67 ,0000 900,
against $1,248.OO000O ten years
ago and less than $6OO,OOO,0OO in
1898. Therefore, in 20 years the
United States has absorbed near
ly $1,000, 100000, or over 260.-
100000 sterling of new gold, an
absorption which would never
have taken place but for the arch
aic character of the banking cur
Under the measure the gold held
will be made to perform much
greater amount of service.
The old currency and banking syst
EN- furnished an easy means for the
creation of a money monopoly that
made good times or hard times, and
created money panics in a period of
material plenty. The new law changes.
this order by ending the domain OF
few men over<>ie finances of the
millions. 1t ta up the clearing
house institution now in operation.
legalizes it and e. ends it. In times
of stress, emergency currency or GER
tificates on commercial assets may be
issued under control of Federal re-
serve board, representing all the re-
serve banks and the public interest.
The new law provides for the recog-
milton of the assets of all as basis
for credit instead Of allowing favor
ed few to use the general credit for
their own profit.
The need of revision and reform
of the currency and banking systems
has been apparent for more than a
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