Bisbee daily review., 1913-12-20
CURRENCY REFORM

CURRENCY REFORM
 Western bankers especially have been insstent en care consideration of currency Legislation The prom ised enactment early week of the owenAass mea- ure may call forth expressions of apprehension from some quarters This should be The bill will moi have been passed in Its main provisions have been under discussion for years During the pro longed supremacy of the Republican party since te Cirai War banking and currency reforms have been neglected although the demands have been persistent There was ample material with which to draft an ade- auat bill when President Wilson assumed office and the essential thing get the system started The necessities of new party vigorously upon its pledges made possible such broad legislation will be contained in the measure, sf Only few currency and banking experts in the country could with reasonable safety put figures on paper in an attempt to how the bill would vorE out Its success will depend the policies pursued by the men in control the situation; rst the Hen in control Of the present national banking sysem second the man who will manage the regional reserve banks and lastly and most important, the federal reserve board itself
 It must be borne mi.d that the bill be amended where 1t is found unworkaoIe True it is usually very difficult amend general legislation but this bill creates
 
 many details operation, which may call for amend ment in the law, will be vital involve political principles.
 than any other thing tending to alienate conE. dence in the beginning is the statement made by Senator Ehu Root that pronounces of sound money.
 Mir Root argument in the main is: dD That the proposed Federal reserve as obligations of the United o,,r greenbacks @ that under tue mechanism of the bill, which would start the Federal reserve banks on with of capital and deposits these notes could be issued three times that amount $1S17OOOoOn, to the displacement gold the substitution of great paper money inhalation.
 The first contention is MT. vandeIips and has been repeatedly answered. It is at war with the common understanding of what is fiat and is against the of expert opinion. The proposed notes will be issued tho the Government but at the instance Of the banks. They will respond to the needs Of the needs of busi- expressed shortme and actual bnsness paper. They irredeemable fully redeemable in gold. They are the opposite Of nat money.
 The second contention by the simple fact that the said s5SG OO6Oe0 where money is used create bank credits to at four times (25 per cent the in effecting changes. s25449OOOOO whereas under the proposed system the theoretical bank note credits would be limited to olly three times sum. Is this imitation?
 The fact Is that bankhote have been provided thoroughly guarded against non-redemption than these Federal reserve notes.
 They protected ana limited b. 3 3s-i3 per cent cash god by bills representing actual mer- chsHdise ready for the way to market; by the credit of the diseounng hanks by the irdorssment of member hank hy the double liability of member bank: ly the double liability member bank stoskheaers; by
 frstlcn te Of the issuing Federal reserve bank; Hy tie restraining powers Of the Federal Re serve Board