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
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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
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raS srMt Alk Tua MgCau. CO. NtTii
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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--
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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.