"WWW pjtrnwn -Trf-T.m- - jfg -WflnwFVt " The WILLIAn J. BRYAN, EDITOR AND PROPRIETOR. Vol, 3. No. 38. Lincoln, Nebraska, October 9, 1903. Whole No. 142. imiipunnmWMJW "'IM.' Commoner. DODGING THE ISSUE On another pago will bo found an editorial from the Register and Leader of Des Moines, la. It ia reproduced because it present $ a good speci men of the reasoning used to support an asset currency. It will be noticed that the Des Moines paper starts out with a denial that there "is likely to be an asset currency measure enacted. It denies that there is any expression of public sentiment that would justify the expectation of the passage of such a bill. It then suggests that congress is likely to make provision for an emergency cur rency. It will be noted that cue Register and Leader avoids a general discussion of the prin ciple and hides behind an exigency. It quotes, however, with arprovaban argument made in be half of an asset currency by tho United States In vestor, and It is to A,-' argument that attention is now directed. The Investor takes tho total amount of assets and the total amount of liabili ties of the national banks, and from that con structs an argument in favor of a currency based on assets. And note the argument. We are grave ly told that there would still be a margin of $483, 000,000 between the assets and the liabilities, but as the liabilities are $4,386,000,000, it would seem that the margin of assets would only be a little more ,than 10 per cent above the liabilities. Would any bank bo. willing to loan a merchant $9,000 if his total assets w,ere only $10,000? In loaning on .real estate, the most permanent form of property, .the money loaners . insist that the loffn shall not be. more than two-thirds of tho present market value of the property, and yet we are told that an asset cu. y Is safe if tho ,,-,', tties are. near ly 90 per cent of tho face valuo ol the assets. The weakest point in this argument is that It is based on averages, wherea-. the currency would bo issued by individual banks. Nothing is more deceptive than an "average." Those rho apolo gize for any evil condition always hide behind an average. If you point out to '-hem that an in creasing number of people are being endangered by a bad system, they tell you that "the average" wealth of the United States is increasing. While money is being taken from f.he many and put. Into the pockets of the few, the apologists for the sys tem use the average to retur . in figures what tho poor lose in fact Those who study social and economic conditions must consider not merely the total accumulation of wealth, but the equity of Its distribution. So, In considering an asset currency. It is not sufficient to take the total assets of tho banks, and thoir total liabilities, and insist that there is a sufficient margin to permit the issue of an asset currency (even upon this basis the mar gin Is not sufficient to cover the dangers of a panic or of an industrial depression), we must remem ber that an asset curency is issued by individual banks and tho .value of such a currency depends, not upon the margin between the total assets of all the banks and the total liabilities of all tho banks, but upon the margin between this partic ular bank's assets and liabilities. If a bank Issues an asset currency and then its officials embezzle the money, what is to become of the currency? A few failures of this kind would soon throw dis credit on the entire system and currency issued by good banks would share the odium with the cur-, rency issued by !md banks. Tho present bank currency, whllo obnoxious to democratic principles and gross favoritism to tho banking element, has at least tho morlt of be ing secure. Tho government holds tho bonds and tho currency is therefore sao, but an asset cur rency is not safo and Duld not be made safo for, if the bank had to put up security tho very pur pose of tho emergency currency would bo de feated. If,. for Insjanc a bank had to put up any kind of bonds it would have 'jo first buy tho bonds, and probably at a premium, so that it would ob tain in currency less money than it paid for tho bonds. Such a currency could not, thoreforo, bo of any assistance in rn onorfency. If the cur rency is unsecured it might possibly relieve tho bank in ono way, but it would be almost sure to embarrass It in another, for wr-'le it might give it moro ready money today it would be likely to de prive it of deposits tomorrow. The Des Moines Register and Leader is wise in avoiding any general discussion of the asset cur rency, for it cannot bo defend' d, but it is a little inconsistent to dodge the question itself and, while protesting that the enactment of an asset currency is improbable, yet at tho same time presont by indirection an argument in favor of such a depart ure from sound finance. Legitimate Banking. The Wall Street Journal accuses Mr. Bryan of being opposed to banks, and then It proceeds to quote Daniel Webster on the usefulness of banks. The trouble with the Wall Street Journal Is that it forms its opinions without regard to facts, and then inflicts those opinions upon the public. Mr. Bryan is not opposed tj banks, and nothing that he has ever said can be tortured into support of the Journal's statement Mr. Bryan is opposed to banks of issue, and in that position he has honorable company. Whether Daniel Webster can be included in that number is not a matter of vital importance, but it is certain that Thomas Jeffer son and Andrew Jackson were among the number of those who opposed banks of Issue, and they are quite as good company, at least from a demo cratic point, aa Daniel Webster and the Wall Street Journal. The democratic party is not opposed to banks of deposit and discount, nor is it opposed to tho use of credit There Is no reason, however, why the government should loan the people's mney to the banks and thus put tho national treasury under the control of the financiers. In another column will be found some reasons why The Commoner opposes tho Aldrtch bill and bills of that kind. If the Wall Street Journal de sires to treat the matter In a candid and honest way, let it answer the objections to the Aldrlch bill and not bolster up a bad cause by misrepre senting the position of those who are opposed to Wall street's financial policies. JJJ The postoffice department Informs us that an unusually large number of dead letters were left undelivered in tho dead letter department last year But thib may not be an indication of grow ing carelessness on the part of the people. It may be an indication that some of the employes were too busy dong work on "side lines." THE ALDRICH BILL To Secretnry Shaw: You are quoted as having expressed yoursolf In favor of tho Aldrlch bill or of somo measure of like character. Tho object of this bill 16 to onnblo tho government to deposit In tho national banks a much larger sum than it has been in the habit of depositing. It has been esti mated that according to tho provisions of the Aldrlch bill something like three hundred millions of government monoy could bo deposited with var ious national banks. Notwithstanding tho fact that the republican nationnl platfor.n of 1888 con demned tho loaning of tho government's monoy "without interest to pot barks," you have loaned more money to pot hanks without Interest than any formor secretary of the treasury, and tho pur . poso of tho Aldrlch bill is to still further increase these loans. There are cerLiln objections to tho Aldrlch bill, and you ought to bo prepared to meet them beforo you urgo such a measuro upon congress. jTh tho first pmco tho loaning Of government money to the banks is an act of favoritism. The secre- tary of tho treasury has to select the banks. Whether he selects justly or unjustly Is a ques tion which tho public cannot pass upon, because it has not tho facts beforo ltIt is a fact that ono of tho Now York city banks urged Its claim to consideration on tho grornu that its directors rendered valuable assistance to tho republican party In tho prcceeding campaign. Tho power of tho government to thus reward political friends and to withhold deroslts fror.. political opponents is a tremendous power 'n tho hands of an ad ministration that is disposed to uoo it for per sonal or party adva"fago. What has happened sinco 1888 to V . ko j loaning of government monoy to pet tanks leas reprehensible than it was then? , 1 Second Tho leaning of fovrnment money to . tho banks makes the government dependent upom tho banks. If it loans a large sum (as it is doing now) it is hardly at liberty to withdraw ths mon oy, for tho withdrawal of a considerable sum would disturb business and threaten a panic,! if the government goes into tho business of loaning money to tho banks it will bo difficult to with draw deposits, and what is therefore regarded as an emergency deposit is ve: aot to guw Into a permanent deposit Third By loaning the government's surplus to tho national banks these powerful institutions are given a pecuniary interest In tho maintenance of high taxes and in the ccfjgction of large rev enues, for the moro money tho government col lects tho more It has to depositJUt is evident that every banker who has a largo government deposit is permanently interested in preventing any reduction of taxation, hewever onerous the burden may become to the people. Can we afford to array so potent an Interest against a reduction of taxation? Is it not difflcult'enougb now for ths taxpayer to secure a hearing? Will it not je more difficult when the national banks, profit largely by heavy taxation? Can the people afford to use their own money to hire the national banks to work against them. T Fourth The Aidrich hill provides for the pay ment of Interest at tho rate of 1 per ccntj Some opposition has been expressed to this provision, II m II s1