Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-06

Lor TINS money LOT Wmcn Coh8Iess uAu
fought 50 many forensic battles. The
spider, that creature which places its
brand upon all things that remain in
somnolent qaietude. spun its web over
the money boards. The dust OF pass
ing seasons accumulated. The. guards
obese and gray. and yet no demand
came for that over which they watched
The original law had provided that
this emergency act should be enectiVe
for but six years. BY the end OF that
time it was expected that new legisla-
ton would have superseded this safety
makeshift. But the end OF the six
year term was approaching and there
was in power a different party from
that which passed the old bill. 1t had
theories of its own on bank legislation.
But it took long time to work them
out. In fact, the day Of the death
knell of the emergency currency act
approached and there was nothing
ready to take its place. 1t looked as
though the nation might get along
no banker had asked for piece OF
emergency currency in all that time.
But the democrats thought it the
part Of wisdom to extend the life Of
the emer-
Life Of Emergency sency cur
Law Extended a Year.osns '' se l r.,
while they were, working out their
scheme for reserve banks. This was
done before the appointed time for the
demise of the old law, which would
have taken place in May, 1914.
So that $6eo.oe0.oo0 Of cobwebbed
money, the Rip Van Wrinkle Of the
financial world, was still slumbering
peacefully when the war broke out. a
year ago. The law under which it ex-
listed was on the last lap of the ex-
tension that had been granted it.
That democratic extension of repub-
usefulness. For, in the fall of 1914.
there was a near-crisis that might
have become real but for this reserve
fund.
The great war had broken and the
houses were un1h4e to handle the sit
uation. There was need of additional
actual money to meet the situation.
The old emergency currency act pro-
vided that banks might in these emer-
tions Of not less than ten. each guaran-
teeing the obligations Of the others
These banks might deposit certain
sorts of securities and upon them be
granted blocks of this currency filed
away at Washington. The occasion for
waited for SO long had arrived.
The guards OF the great vaults were
awakened, the spiders were put to
fight, the dust Of those six years was
shaken of. Wherever group of banks
Haunted the distress signal and pro-
duced securities in accordance with
regulations there were hurried large
packages of currency. Some fifty tons
of this. paper money were hustled out
to one. point and another. Altogether
was used and it is not at all improbable
that it prevented one of the worst
financial panics the nation has ever
known. The presence of these large
amounts of actual money made it pos
sible for the banks to meet all obli-
cations, to stand the demands for cash
that are always made by the public
when there is financial disturbance.
The Treasury did not want this spe-
cial issue of money to remain long
among t h e
Interest FORCES people, and it
Money Back Again. r .n.ssi ORE. pro iO
terest should be paid on it. Interest
is not paid on any other of the gov
eminent issues of paper money when
eiiVy oiS oOtp dhu 81 II USSdIht " Tile
advantage of banks getting this issue
that it should return the emergency
currency as soon as it was possible.
So, within a few months Of the time
the Treasury Department sent out this
fifty tons of special paper money, IL
was practically all back again. AS i,
came in it was cut to pieces in the
machines that are made for the pur-
pose and kept at the department, was
torn up and beaten to pulp: When
it had assumed a condition like unto
a much masticated spit-baD it was
sold to a manufacturer of curios for
SEQ a ton and turned into souvenirs in
the form of miniature Washington
Monuments and Capitols for the delec-
tation of the tourist.
During the past year almost every
body who handles money at all has
wrapped up some of this emergency
currency in his roll and never known
it, The only difference between 1t and
other paper money lies in the legend
that is printed across it's face. Where
the ordinary note reads United States
bonds deposited at the Treasury" the
emergency currency reads, United
States bonds and other securities"
Now that the old law is dead, the
balance of the currency in the big
vault at Washington has been turned
into the regular channels and the doors
Of that storehouse thrown open to the
funds employed in ordinary Treasury
business.