The sun., 1913-11-03

Itfcl't OF the note issue provisions
of the House currency bill. which the
Senate is engaged In Transforming.
ranges all the way from the ardent
championship Of Government money by
Mr.. BRYAN TO apol0gistS whose crit
iriSmS are cuuchci in terms OF pussy
footed solicituhe lest an Admiuistra-
| ticn egg be incautiouSly broken. The
| fdyorite line of argument with these
gentle souls is that the only warrant
| for regarding the note issue in the
| House measure as Il movement in the
| direction of fat money is the unfor-
| tunatc language of section II.
They contend that the reality of the
proposed notes is different from their
! unhappy verbal description. They VEN
| ture to suggest that the language
| should be changed. although they as
Seri that the notes are not Ia he
actually allegations of the Government.
no matter what they are called. but
| obligations of the regional banks pro
posed in the bill. They contend that
while the bill speaks awkwardly of
| the notes as advances to the banks. the
| actual process of taking out crcula-
| tion will be practically the same AS
| now and that what the bill mentions
| cumSiy as interest to be- charged ON
! the circulation of the notes is not in
tercst. but "A tax.
! This casustry does, indeed. include
| a mild protest against the general
| association of the Government ana lis
credit with the projected note issue.
J At the same time protest l. weakened
I to the point of extreme debility by
urging that II is. after all. to be 4
bank note issue with sort of GOV
ernmcntal halo. having only senti-
mental appeal To crude notions about
| currency.
The facts are thar in Section II the
House bill provides not for bank notes
with the Government dragged in for
the sake of gratifying popnlistic CON
ccptS hut for G"vcrnment notes with
the banks dragged in for the purpose
of catering to prejudice in favor of
! sound money standards. Nor is the
| language of the section calabl" of sep
aration from its significance. II is
language employed for n definite and
! specific object, and that object is tn the
| last degree dangerous. II is the de
| liberatc expression. to the extent that
| it may be dared N This time, of the
| iial money delusiOn which has period
| ically seized on large numbers of the
American people and forced desperate
! struggles to prevent the country'S cur
rency from being dcba sed or to restore
| it 10 Sorntncss.
II is not alone the language in which
| the House bin Describes the projected
note issue which has caused the fear
, thai fiat money may be injected into
the circulating medium. \ distinct
iiat quality attaches to the provisions
for redemption in lawful money and
for lawful money reserves against the
notes. Promises 10 pay. which ar" cN-
| plicitIy declared 10 be GoNcrumen,
| PROMISES 10 pay, are 10 D' ''nNtFllblt
into similar promises and secured hy
similar promises. This Is of the very
csSenc" of fiat money which is Gus
| tumarily defined as irrrdrrnllblc pIprI
currency not resting ON u specie basis
If linguistic infelicitics We're all tn,
fault which could he aScrihed to til,
note iSSl" under discussion, how did
II come To- withstand the criticism I,
which il WAS subjected while the meas
urc was in the iiulSct There wa,
intent in the ob cctiunabIr phrnsrolugy
for if II did not mcali auything il
Would have been cilug"d. What thai
intent was cannot h" cuuhnued in tn,
light uf the interpret ltiun given /,
IN" note issue section hy WILLIAM j
bRN ~. who has n consistent fla
money record rcuchng back for twcrn,
years. Mr.. BRYAN stands to-day whrr,
h" stood in the early Hu> ana whrr,
he -tnpd ia~t Junr when be rNpyos>r,
> III" following lpplO,Jl of liir issue g.
GoNrruurnl uotr> contemplated lv m,
House h,i.
Tn" notes are To- be- Treasury notes
issued 10y the Government aud loaned [,
. the regional reserve banks. This il IA