New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-06-24

President Wilson in his message 10 Oonsie''
shows an understanding Of the defects in our cur
rency system. He says:
We must have a currency not rigid as now o St
readily elasticay responsive to sound credit w
expa nding and contracting credits OF eNeIEuaS
,r5neacti0rs The normal ebb and flow Of personal
and corporate dealings. Our banking laws mus
,nobiiza reserves. must not permit the concentld-
tion anywhere in a few hands of the monetary re
sources of the country their use for specuauoe
purposes in such volume as to hinder or lmpeue re-
stand in the way OF other Ho'e I'ei''i''N' 49,
fruitful uses.
The trouble is that the administrations proposed
plan does not provide for an elastic currency III
the first Mace the present bond secured currency
retained. This currency is totally ineasttc Often
# Is outstanding in an amount much in excess OF
the needs OF business The public is assured that
this defect in the existing system can be taken care
of later but why should the curing of'it be post
poned? 1t is one of the fundamental faults let
the Democratic programme is to leave 1t FOR correc
ton in subsequent legislation. The public has no
assurance that If the present bill is passed this SUD-
seouent legislation will be passed, or any lhul-
cation as to what its nature will be If 1t Is passed
And the Democratic plan for issuing emergency
currency is cumbersome and will not secure tna'
degree Of elasticity which might have been optalneu
II the Bryante fear Of banks which characterlzes
II throughout had not prevented the doing OF the
obvious thing Mr.. Bryan insists that the emer-
gency notes shall be issued by the government Ap-
parentlv in the Democratic view the only institution
untitled to issue note is a bank. John Jones may
Issue his note and It may be accepted by every one
who knows John Jones. And William Smith may
issue his But a bank should not issue It's noteS
because forsooth. Of the Democratic doctrine that
only the government must issue the money!
Even the Democratic donkey ought TO know oy
this time that banknote is not money. 1t Is not
money any more than John Jones's note or Will
lam Smiths note is money. II is a promise to pay
money II passes current where William Smiths
or John Jones's note does not because bank is
better known than William Smith or John Jones
and frs credit is better established. II govern
mont does its duty il will merely that the banks
credit is so good and that its note issue is so safe
guarded that the public may accept its notes with
out question If this is done the banknote issues
will rise and fall with the volume OF business.
They spring from business itself Such a currency
is elastic in a true sense. 1t is. as the President
saws. responsive to the ebb and flow Of personal
and corporate dealings" The currency provided for
in the Democratic plan will not be completely So
Neither will the Democratic plan TO mobilize re
serves be sccessfu-at least not TO such an extent
rs IN produce the most economical and effective use
Of them With its regional system It stops tlmldly
short Of the thorough organization Of the countrys
banking syEtem that will bring about the needed
results