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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Oct. 27, 1905)
r wuww v,ymvwiv, mvum, 0 OCTOBER 27, 1905 . The, Commoner. - 5 WHEN WILL NATIONAL BANKERS GET ENOUGH? The asset currency plan is being vigorously pushed just now, and Secretary of the Treasury Shaw is conspicuous among its advocates. Mr. Shaw- explains that our currency system is "non- elastic, that it fails to respond in volume to the change in needs of seasons and of localities." Mr. Shaw says that we came nearer to a panic September 30, 1902, than most people appreciate and that an "elastic system" is necessary in order to avoid panics in the future. . Evidently Mr. Shaw does not like the term "asset currency," because he says that his remedy does not contemplate asset currency nor even "emergency currency" in the popular acceptation of that term. He would authorize "additional national bank circulation," explaining "this method involves the right of national banks to increase their circulation in an amount perhaps equal to 50 per cent of their outstanding volume of government secured circulation, on which the bank should pay a tax of 5 or (5 per cent during the time it is maintained, and the government in consideration of this tax should guarantee its redemption." Mr. Shaw would eliminate from the national bank note the statement, "This note is secured by bonds of the United States," and the additional currency would then be identical with that based on government bonds. Mr. Shaw may apply whatever name he sees fit to this plan, but it is nevertheless asset cur rency. He says that bankers would not take advantage of their privileges under his plan ex cept in cases of dire public necessity, and as .i argument in favor of the plan he says "The comptroller of the currency and the bank, issuing the currency would alone know of its existence, it would not e ivertise its existence or our ex tremity, and I can scarcely conceive of condi tions under which it would remain out sixty days. It 'would be retired by a deposit of money at any sub-treasury." Secrecy in public transactions is not desir able and it is not likely that many people will be influenced to support this plan on the theory that bankers would not avail themselves of the privileges offered to them. While conceding to thesT gentlemen a reasonable amount of public spiritedness, they are not so wholly unselfish and so entirely devoted to the public welfare as to overlook these advantages. It is reasonable to believe that if the national bankers were given the privilege which Secretary Shaw hopes to con fer upon them and which he now describes as a precautionary method to bo employed at times of threatened panics, it would como to bo the rule wherein these extraordinary boneflts are offered and .greedily accepted by the national bankers. It Is strange that the men who had so much to say concerning "50 cent dollars" when they applied that term to the silver money are so roady to advocate no-cent dollars. And what docs Secretary Shaw's plan in volve? Let us first look at the present-day privilege enjoyed by the national banker. By depositing government bonds ho can now issue national bank notes to the par value of the bonds. He thus obtains permission to issue these na tional bank notes and use them as money while at the same time he draws from the government interest on the bonds deposited as security' for those notes. If Secretary Shaw's plan were adopted the national banker could issue addi tional currency to the amount of 50 per cent of the value of bank notes he had already issued. For instance, say there are under the present law $450,000,000 in national bank notes out standing. As security for these notes $450,000,000 in government bonds have been deposited. These national bankers aro drawing from the federal government interest on $450,000,000 in govern ment bonds and they are at the same time using $450,000,000 in national bank notes for the pur pose of drawing interest from the people. Secre tary Shaw's plan once put into effect would au thorize these bankers to issuo $225,000,000 ad ditional bank notes, thus having outstanding $675,000,000 in national bank notes, with $450, 000,000 in government bonds as their security. A national bank circulation $450,000,000 of which is secured by government bonds and $225,000,000 of which is mere wind! But Secretary Shaw assures us that this ad ditional currency would be absolutely secure be cause the faith of the government would be bo hind it. If '"memory is not at fault, Secretary Shaw and his associates were wont to laugh at the populist when he talked about "the faith of the government" in connection with the Issue of money. But suppose some of these banks should fail? Secretary Shaw's proposed tax would not provide the redemption fund. From 1893 to 1904 inclusive, according to Bradstreets, we had 308 national bank failures. The assets of these banks were of course not sufficient to pay their liabilities. Suppose Secretary Shaw's plan MR. BRYAN ABROAD Mr. Bryan landed in Yokohama Saturday, Oc tober 14. The Associated Press reports concern ing his experiences follow: Tokio, Oct. i5. William J. Bryan and his family, who arrived at Yokohama Saturday, will spend two weeks in Japan. They will make a visit of five days to Tokio and Marquis Ito, presi dent of the privy council, and Count Okuma leader of the progressive party, will invite Mr. Bryan to a dinner. The Japan-American society will invite Mr. Bryan to address its members at the Young Men's hall October 17. Count Okuma will preside at the function. Tokio, Oct. 18. William J. Bryan today ad dressed an audience of about 10,000 persons, with Count Okuma, the former foreign minister and leader of the progressive party, in the chair. His simple style and clear pronunciation made his speech, which lasted forty minutes, intelligible even to the younger students and called forth ap preciative remarks. Later Mr. Bryan took lunch eon with Count Okuma. The municipality of Tokio has invited Mr. Bryan to attend a public reception, but his time here will not permit him to accept the invitation. Tokio, Oct. 19. The American minister, Lloyd C. Griscom, will present William J. Bryan to the emperor on October 21. Huntington Wilson, sec retary of the American legation, gave a luncheon today in honor of Mr. Bryan. Viscount Aoki, former minister of foreign affairs; Baron Kentaro Kaneko, member of the house or peers, and M. Sakatani, the vice minister of finance, were pres ent. The last mentioned official is a pronounced advocate of the gold standard. Mr. Griscom will give a dinner to Mr. Bryan tomorrow. Marquis Ito, president of the privy council, and Count Okuma, leader of the progressive party, are ex pected to be present. PUSHING THE COMMONER'S CIRCULATION Many Commoner readers are taking advan tage of the special subscription offer In the effort to widen The Commoner's sphere of influence. Yearly subscriptions have been received in num ber as follows: O. G. Whltcomb, Andover, N. Y., 21; J. B. Sunderland, Spencerville, Ohio, 10; W. D. Terhune, Trafalgar, Ind., G; Joel Stockberger, Rochester, Ind., 7; B. D. Tull, Windsor, 111., 6; M. M. Gaunce, Okmulgee, I. T., 6; Malachl Bauter, Watertown, N. Y., 11; N. W. Culp, Alan son, Mich., 6; C. J. Loy, Louise, Tex., 10; F. F. Burns, Penn Yan. N. Y., 10; Otto Blievernicht, Chicago, 111., G; John C. Rhodes, Akron, N. Y., 6; W. B. Tull, Magnolia, Miss., G; Henry Moran, Canton, 111., 7; M. A. Hoyt, Carroll, la., 6t H. M. Shilling, Carthage, nil., 7; W. W. Baylor, Scranton, Pa., G; James Novinger, Novinger, Mo., 6. The following named subscribers have each sent five yearly subscriptions: L. I. Kingsolvor, Powder Springs, Tenn.; M. C. Ufford, Ames, la.; J. V. Phillips, Wellington, 111.; I. S. HenjUm, Ellis, S. Dak.; Dr. B. L. Dawson, Chickasha, I.. T.; Joseph Roop, Frankfort, Ind.; Enoch Baker, Huntington, W. Va.; John Finley, Dowagiac, Mich.; F. H. Jackson, Winchester, Ky.; G. H. Moore, Vassar, Mich.; Clinton Babbitt, Beloit, Wise; H. W. Ford, Lodi, Calif.; Francis M. En banks, Choctaw, Ark.r J. F. Neill, Hlgginsville, Mo.; T. M. Elkins, Duffau, Tex.; J. F. Richard son, Dongola, 111.; E. L. Durham, Bvansville, Ind.; A. E. Lonsway, Tiffin, Ohioj J. J. Moore, Okmul gee I T.; George J. Shelton, Windsor, Mo.; James Stroup, Lorimor, Iowa T. W. Jackson, Colony Centre, Calif.; J. A. Oxford, Elizabeth town, 111.; G. W. Bains, Birmingham, Ala.; W. S. McCollum, Eagleville, Mo.; C. C. Counts Ken tuck, W. Va.; B. M. Nye, Santa Rosa, Calif.; Frank S. Culp, Butler, Ohio; S. A. Porter, Hager City. Wise; R. T. McDaniel, Republic, Mo. Everyone who approves of the work The had been In force and thoHO three hundred and eight banks had issued under the government bond plnn, say, $10,000,000 in nnllonal bank notes, and then under Secretary Shaw's plan had taken advantage of their 50 per cent privilege and Is sued $5,000,000 additional. Would that have been "sound money?" The advocates or the asset cur rency will say Yes, becauso tho faith of the government bolng behind tho wind currency It would be "as good as gold," ana tho holders of notes would not Buffer loss. But tho govern ment would lose, and it would bo nocossary for tho government to pay those note-holders out of tho pockets of tho people Tho logic of tho frenzied financier Ik fear fully and wonderfully made. Ho objects to a law which will rcstoro tho white metal to its functions and remove from It tho disadvantages under which that metal's price has decreased. Ho docs this becnuso he says no Is opposed lo "50 cont dollars;" ho wants "every dollar to bo as good as every othor dollar;" lie wants "honest money," ho is so opposed to tho government it self issuing money that ho Is already clamoring for tho retirement of tho good old greenbacks, And ho does all UiIb claiming that ho Is zealous for the integrity of our currency system. Yet ho is pleading for tho establishment of a system whereby individuals may be given tho privilege of issuing a largo volumo of paper money for tho redemption of which tho government and Ihe government alono shall stand responsible. He boasts that we have tho greatest of monetary systems; that the money question has been set tled and he objects to any further discussion of that question; yet ho is so fearful that panfes may occur becauso of a scarcity of money that ho wants tho peoplo to confer upon tho national bankers tho power to issue a considerable por tion of tho national bank circulation upon mere wind. Whero in 189G ho contondod that wo had money enough, in 1905 ho is pointing with pride to tho marked Increase In tho volumo of our mon ey, and now he Is demanding a further Increase to the extent, doubtless, of several hundred million dollars In national bank notes, without any se curity whatever for their redemption so far as concerns the men who issue them and are given them to loan to tho peoplo. And, strange to say, with all them Incon sistencies and absurditfes the frenzied financier has convinced some well meaning people I hat his plan deserves the support of patriotic, Intelli gent citizens. Commoner is doing Is invited to co-operate along the lines of this special subscription offer. Ac cording to tho terms of this offer cards each good for one year's subscription to The Com moner will be furnished In lots of five, at tho rate of $3 per lot. This places the yearly subscription rato at GO cents. Any one ordering these cards may sell them for $1 each, thus earning a commission of $2 on each lot sold, or ho may sell them at tho cost price and find compensation in the fact that he has contributed t,o the educational campaign. These cards may be paid for when ordered, or they may be ordered and remittance made after they have been sold. A coupon is printed below for the convenience of those who desire to par ticipate in this effort to increase The Commoner's circulation: THE COMMONER'S SPECIAL OFFER Application (or Subscription Cards Publisher Commoner. L am interested In In- 1 r creasing The Commoner's circulation, undde-' LU biro you to .send me a supply oi subscription cards. I agree to use my utmost endeavor to If) sell the cards, and. "will rendt for them attbe. rate, of GO cents-each when sold. 20 zrr Name 2n CQ Box. oa StbmtNo 75 P. O State 7r Indicate hc number of cards wanted by I 00 markinj-afcposite one of the numbers print . ed on yjBfrhis blank. If you beWethe paper Is doing a work that mer its encouragement, fill out the above coupon and mall It to THE COMMONER Llncolt. Ueb. l J 41 in ; ijj