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About The morning Astorian. (Astoria, Or.) 1899-1930 | View Entire Issue (March 14, 1908)
SATURDAY, MARCH 14, 1901. "'I I. iT ' " " ' ' THE MORNING ASTORIAN, ASTOMA. OREGON. 8 7:3MonigI First Performance WUipe,Giyen At The nit Mil I HCOKMCKCIAtpCRTfjH BETWEEN PirTEENTH SIXTEENTH uream Moving Pictures 1 , and Illustrated Songs PERFORMANCES tASTINO ONE HOUR, ' PUN AND AMUSEMENT FOR ALL Admission 10c -Children 5c PROGRAM CHANGES MONDAY ' ' WEDNESDAY AND SATURDAY 0 8WCBS.fo DAinnoFOVfDzn. Fir;pKTiuxra AfetiufiRrfy, riniSlfwOiY ClOSSETGDSYEQS poirrtArOtORXQON. Mora than two-thlrdt of your Ufa yoa wear shoes. Did you mr think of that? The Dr. A Reed Cushion Shoe Wit built to gWa your fatt comfort two-tbtrdi of your llfi; tha rtit yon eltap. The W. L Douglas Shoe Hat world-wide reputation. Waar ona and ba op to data. s. aTgimre 543 BOND STREET. Oppotlta Fishar Broa. Beat kinds of logging ihoi, ban made, always on hand. ASTORIA DANCING SCHOOL Kearney Mall, Exchange St Opposite Skating Rink A special Course of 10 Lessons for Ladies. The latest and most approved ideas in Dancing. $2.50 for full Course. School opens every after noon and evening. Tel. Black 2415. ttittij . 60 YEARS' vT VyKXPERIENCB T 1 1 11. I HiillUMM.lllh i wmm American Banking System Worst mmstmm i MI. fill', "Bank Circulation Based Upon Oold Kesarvea ana a complete Extinc tion of All Qovarnment Credit Are at This Time Counsels of Perfection AnTonainnillnf holnn mid amonpii' n mar oiSoVl? m""umi our opinion froo wUl.M an Mwia. notfc without in Scientific American. 4 hmidnomolT HlnitraM wtkly. Isrwtl oh i(in fnnrmutiUii.il. Bolil byll ntwidMierj, iMitHT did iraplicltf. .uWiDilon In numtwri) t SO l; SMI Tr.. UWn. W"J. r '. hair AtmiMtraMj raS srMt Alk Tua MgCau. CO. NtTii rr."' riAi. Americans have many advantages upon which we may plume ourselves as being in advance of other nations, but we have at least one humiliation to lccn sclf glorification, Our bunking syctm is the worst in the civilicd world, The itateitinen of 1860 did not have a clean state to begin with. Govern ment credit was then precarious and needed support, and the temptation to use banking for this purpose prov ed irrcnistablc. Sound banking was sacrificed to sustain the National credit when it was resolved that 'the currency should be placed upon Gov ernment bonds, which, in the opinion of Mr. Gage, ex-Secretary of "the Treasury, resulted in giving a mark etable value to these twenty per cent higher than they would have other wise reached. ' ' The result is that our banking capi tal is diverted to the extent of $1,250,- 000,000 invested In Government bonds by the banks, because currency issued must be based upon an equal amount of these bonds deposited in the Treas ury, A reserve of twcntylfive . per cent against deposits must be kept in cash and reserve of five per cent against circulation kept in Washing ton for note redemption. Mr. Fowler the able Chairman of the Finance Committee in the House, states that the loss caused by this reaches $150, 1X10,000 annually. Ranking capital in France, Germany, England .Scotland, Canada, etc. escapes this toss, because tlirir currency is based upon the as sets of the banks. None of their cap ital is locked up in bonds as security for notes. Ranks keep the reserves which experience proves to be ncces sary. This, then, is clear that banks in other countries start with a great ad van (age over ours, which are heavily handicapped. There is another important advan tage these banks possess over ours Currency based upon the assets of banks rests chiefly upon trade bills In the nature of things, the bank is called upon to issue or redeem notes just as business requires. Business brisk, more notes are needed, and they remain in circulation; business dull, less notes needed, and some are promptly returned to the banks for redemption. Ail is elastic and outo malic. The law in European nations does not restrict the issue of currency e'iial to the resources of the banks, csccpt that when the Bank of Eng land was reorganized in 1844 the Gov crnmcnt owed it eleven milion pounds and it was agreed that the Bank might issue uncovered notes to this amount, but any issued beyond this should be covered by gold. The practice in emergencies if for the Government to allow the Bank to disregard this and to issue additional currency uncovered, but the Bank must at all times redeem notes In gold upon presentation. In ordinary times' the amount of notes issued by the banks docs not exceed much, if any, one-balf the amount issuable. Canada's overage is fifty-four cent, Scotland's is less. We hear the reply, "AH this would be a great improvement upon our system, except , that our bank notes have the bonds of the Government behind them, the best of all securities. Our people would never agree to ac cept bank notes without this. Other nations have not this undoubted sec urity." Let us look into this. Take Can ada as an example, which has a oroner manner of banking modeled after the Scotch system. Canadian banks issue notes based upon assets, These are secured in the following manner: ' ' ' First. They are a first lien upon all the resources of the bank. Second. Every stockholder is li able to an amount equal to the par value" of his stock to meet the debts of the bank upon this the notes have also a first lien. Third. The' Government taxed the batik five pef censor their average circulation until a fund was obtained, ,M, Ul, lit' ' ':' 'I' the proceeds of which are' ample to! pay any treasonable lot upon notes, and' this ftlmi i Government jAowf hold. If it should ever be found Insufficient, the tax it promptly to be increased.' ' This Special fund, how ever, has never yet been called upon for a dollar. The interest upon it is now returned to the banks at super fluous security; ' : ; : No bank in Canada or in any of the other countries possessed of proper banking has ever failed to be paid upon demand. Ci tnj.are this with the security we have for tur currency from Govern ment b.Mids which have been sold in g"M for a shade over one-third their face falue (greenbacks fell to thirty six cents,) and they may sell so again should we be drawn into a serious war. They are at a fictiitious price to-day equal to twenty per cent. It is not true, therefore, that these are the best security. The Government secures the legal tender note by keeping in Washing ton a reserve of nearly fifty per cent in gold (150 as against 346 millions), but the only redemption fund against our currency is five per cent in legal tender paper money, which the banks are required to maintain in Washing ton against their circulation. There is only one substance in the world which cannot fall in value, be cause it is in itself the world's stand ard of value, and that it gold, which the banks of civilizated nations have as their reserve. There never was a time, and there never can be a time, as far as we can tee, when a million dollars' worth of gold will not redeem a million dol lars' worth of debt. Hence the cur rency of European nations is absolu tely secure," being based on gold, while the currency of our country is not. A serious war would affect it, because our bonds would fall in value. Other nations go through wars, their bank notes never affected, because the reserves held in their own vaults are in gold. Their business world goes on much as usual. Ours would be in constant danger of collapse. Men have railed against gold as if it had received some adventitous ad vantage over other articles. Not so; gold has made itself the standard of value for the same reason that the North Star is made the North Star it is the nearest star to the true north around which the solar system re volves. It wanders less from, and re mains nearer to, the center than any other object. It changes its position less. To object to gold as the stand ard of value, therefore, is as if we were to refuse to call the star nearest of all stars to the true north, the North Star. Man found that gold possessed many advantages as a metal and was the one that fluctuat ed least in value; there fore its merits have made it the standard of value. That is all. If another metal appears that keeps truer to uniform value, it will displace gold and make itself the standard, as the star Lyra, tinder pre sent conditions, will finally displace the present North Star. Some men high in authority these days seem to be haunted and affright ed by the dread specter of war, and clamor for four battle-ships this year when last year the Tresident announ ccd to the world that no increase of our navy was required, but only one battle-ship per year to keep the pre sent navy effective. Those thus af flicted ponder upon the consequences that would befall our whole financial fabric if, under the strain of war, its basis crumbled even in a small degree compared with that which occurred during the Civil War. France, when overcome, the enemy besieging her capital, moved on in all peaceful busi ness departments in perfect safenity. Gold commanded one per cent pre mium for a few days, owing to the disorder reigning in Taris, which rcn- deerd it difficult for people to attend to business needs. With this excep tion all went on as before from start to finish. As a war, measure, ' the President should not delay asking Congress before it adjourns to lay the foundation the only possible foundation for a safe and perfect banking sysetm, by separating t the banks from the Government and re quiring them to keep reserves in gold coin as European banks do. A be ginning might be made by enacting 4-- Utrjri li r I 11 liil mm iim 5 S9l ! li The Boston Closes It's Bows TO DAY and forever to the buying public. All must go now NOW prices no object come and get the goods most any old price .takes them. From 9 to l6 O'CjlQcJc special We will close out one big Jot of men's 75c, $1 .anch)jy $125 dress shirts for Lu. -.rl;.. A.S. Ladies' $1.00 and $1.50 Wrappers, extra good dualities : .i Ladies' 75c and $1.00 Fine Kimonos will go .today 5) (TTK for only : il C Last dean up on Boys' Suits, sizes 3 to 7 years, ,QT-f while they '.last...:::.:..........:: il..:..:.2:i.i:..: Come early and stay all day. Many, lots still large and some small, but our prices today will'keep our score of clerks on the jump, and we will ask the customers to be patient. We will do our best to see that all are waited on tore At ttie tsig tsiue sign Successor to the Morse Department Store Try JELL-O, the dainty, appetiz ing economical dessert Can be pre pared Instantly simply add, boiling water and serve when cool. Flavored Just right; sweetened Just right; per fect in every way. A 10c. package makes enough dessert for a large family. All grocers tell it Don't ac cept substitutes. JELL-0 complies with all Pure. Food 'Laws. Seven flavors: Lemon, Orange, Raspberry, Strawberry, Chocolate, Cherry, Peach. ..II '. J.. .l.v v.J . .11.,. 'fits i that after a certain date banks should keep increasing amounts of their re serves against deposits and circulat ing notes in coin; as this increased, the bonds now held for security being released. This is practically the In dianapolis plan, which has won wide acceptance. Gold coin can easily be obtained. There is twelve hundred millions of dollars of it in the country to-day, with power to increase this, since our exports exceed our imports. Details should be left to the future, whether the European plan of one central bank or the Canadian plan of establishing a point of redemption in each district be adopted, or an or ganization of all National banks be made to co-ordinate the system and have authority in emergency to auth orize an extension of notes issue as central European banks have under Government authority, all our banks to be responsible pro rata for such additional issues. All these and other secondary questions are not now in order. To-day's duty is sim ply to make a beginning toward basing our banking system upon gold, instead of Government bonds liable to fluctuation under exceptional con ditions. To reach proper banking we need no revolution. We should make haste slowly. All our progress should be tentative, avoiding any thing like shock to our present sys tern so fraught with danger and rapidly assuming proportions that threaten recurrent disasters. j v We only need to turn our faces and1 keep them in the right direction by beginning to inject more gold direct ly into our present system little by little, until, in the fullness of time, we can establish a banking system complete in itself, such as that which the leading nations and even Canada now so happily possess. v When we at last become fuly pre pared for the substitution of asset for bond secured currency, this can eas ily be accomplished without causing even a ripple of disturbance, thus re lieving the Government from all part in our banking, as other Governments are relieved under their systems which work so admirably. Our present plan is primarily an in strument designed, to strengthen pub lic credit, and scarcely deserves to rank as a banking system at all. Public credit no longer needs , this support. Let us therefore, gradually, up-TO-oaTE pairjr Aimy oa the lookout for the mot pprov4 wy of doing thtnea, have tecared the right to ci the well known pba, , ataina, varm sites, made and aold under the mask at ffllEQUALITY A aaark that etuUea any one, novice or expert, to get, without doubt, exactly Che right finish for wood orewtai, old or new, Inaida or out. WtMBfWr. bajrim., aik for oopy of tM tmlrtiiiii rrinit, "TM ewncaoa ana awataarUrtntlciJn. . ALLEN WALL PAPER AND PAINT CO. llth & Bond Sole Agts. (mrff All iTtfEi 0 tssal Maraschino Cherries DELICIOUS Ti'y'em 75c and 1.00 a bottle at the AMERICAN IMPORTING CO. 1 4 589 Commercial Street A not hastily, but slowly, very slowly, frightening neither the ' most ignor ant nor the most timid, transform it into the instrument which the country so imperatively needs, if it is to be secure, as other countries are, against financial cataclysms, either in peace or in war. Men in public life who keep before them this important task will' live long in the grateful memories of their future countrymen, for our present plan is one of the greatest of mistakes pardonable only because made under the pressing conditions surrounding the Republic after the Civil War. . We that' read in the Senate recently Senator Lodge, one of its leading members, declared that "banks circul ation based upon gold reserves and a complete extinction of ' all govern ment credit are at this moment coun sels of perfection." This is true in deed. Senator Lodge has all the leading authorities upon banking af fairs known, to the writer in agree ment with him. The statesmen of to day, when dealing with the subject, will have no excuse to offer if they fail to turn the country in the direc tion of this perfection. There is but one right path.