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VOIjUME;.13,j "number i
A Timely Query as to Central Bank Literature
, v ArnfliOB , fovor of a central bank and an asset currency? It costs
Who is putting np the money for the widespread pubUcahon JJTa the interested few are able to carry on
money; who is furnishing it, and why? The unorganized masses are at a great disadvantage wnen
a expensive campaign to secure the special privileges which they desire.
A Central Bank and by Democrats, Too
The following editorial appeared In "Financial
America," In New York, a financial publication:
Currency reform rumors will not down. Tho
latest is, Indeed, the most acceptable that has
como to our earn for somo time In fact,
throughout tho wholo campaign. What a sur
prise it would be how amazing, how astound
ing if tho democrats should swing around to
tho point of view that would permit their vision
aplcndld to rest on nothing but a central bank!
Stranger mutations havo happened, but
despito tho rumors that thoro are indications
favoring tho establishment of a central bank in
this country, It will bo woll not to put our
faith in them at this time.
Much prejudice ignorant and unfounded is
believed to exist In this country against a cen
tral bank. This is said to spring from tho fate
of tho second bank of the United States and Its
political embroilments in tho Jackson-Clay
I3tddlo episode. All tho factB and circumstances
connected with tho bank's downfall took place
covonty-flvo years ago; aTe only understood In
their full significance by students of history,
and, under no concolvablo circumstance, could
they bo repeated today.
Nor could a banking institution modelled
aftor tho Dank of tho United States be estab
lished in America in tho present; nor is thoro
anyono fatuous enough oven to recommend such
an attempt. Still, with this wholo transaction
befoggod and clouded, and with never an honest
attempt having been mado to clarify or explain
It to tho people, our timorous reformers and
craven politicians havo permitted tho belief to
gain ground that any sort of a central bank
established in this country must inevitably be
come tho football of politics, tho bono of party
Somo one rattles tho dry bones of Andrew
Jackson and central bank advocates run for
cover. And that's about as far as tho proposal
to instituto a central bank in tho United States
has over progressed.
Sovoral emlnont bankers, in tho last flvo-ycars,
prosontod plans for tho establishment of a cen
tral bank, discussod them before intelligent as
oomblagcs of bankers, buslnossmen and sound
economists, and in our opinion, at least, ably
demonstrated their case. The press was frankly
receptive and much publicity was given these
proposals. Tho roal stumbling block tho fate
of tho old Bank of tho United Statos however,
was never explained away. Seemingly, a policy
of silence on that material point was adopted,
and to no constructive ond.
Among thoso who submitted central bank
plans wero Messrs. George M. Reynolds, George
B. Roborts, Lyman J. Gage, William 13. Ridgoly,
N. W. Harris, Paul M. Warburg, Charles H.
Treat, Andrew J. Frame, Charles A. Wright,
Edward B. Vreoland, and Victor Morawetz. Tho
New York chamber of commerco also favored a
central bank, and so did several senators and
representatives in congress.
This enumeration includes mon who served
aB tho highest finance officers of the government
a treasurer, a controller of tho currency, a
director of tho mint, and a secretary of tho
treasury of tho United States ominont bankers
at large, somo legislators and one economio
writer of authority. Yet their teachings and
admonitions wore largely negatived by a foolish
and unreasoning projudico to remove or cope
with which an intelligent attempt has never
boon made; and tho result was a compromise
offering the reserve association of the national
monetary commission which has not been uni
versally approved and, probably, will never be
If, as rumor saith, a plain central bank with
.branches, is proposed, in which the people as
well as tho government and the banks iay be
come owners, the institution being under strict
government supervision perhaps, a controlling
direction, a new and a far more acceptable plan
for currency and banking reform than the re
nerve association, will be originated.
Such a proposal would not be open to the
objection that it was a bankers offering entirely
intended to give that fraternity greater control
of the money and credit of the country. The
people and the government being owners jointly
with the bankers would tend largely to popu
larize such an Institution, and lead to an intelli
gent concentration of the present scattered bank
ing reserves and to harmonious co-operation in
stead of the present isolation among our 25,000
odd banking institutions tho two chief vices
of our present system.
Such an evolution would make for a cohesive
and co-ordinated banking system not for domi
nant centralization of banking power; for pro
tection of the credit system of the country from
control by tho "interests;" for equality and
entire Independence among the banks; for elas
ticity in currency through rediscountirig; and for
the establishment of a nation-wide discount
market. A popular central bank would givo
us these needed facilities. Financial America.
A DESERVED TRIBUTE
Tho rally of women to the democracy is one
of the very interesting episodes of tho times.
This week the national woman's democratic
league met in Washington. President-elect Wil
son prepared a message for this convention.
This national assemblage of democratic wo
men is an event well worthy to command the
attention of any statesman from the next presi
dent down. Womankind constitutes more than
half the population of this country. That femi
nine influence, in all ages of tho world, has
exerted an immense weight in affairs of govern
ment, is a well known fact.
In several states, women voted at the election
last November. But apart from participation
in tho contest at tho polls, the share of women
in bringing about tho change of administration
at Washington was an important one.
Among the achievements of the democratic
party is to be reckoned the fact that it con
vinced American women of the justice of its
The issues of the late election were issues
that struck very close to tho hearts, heads and
homes of women.
High cost of living, brought about by the
trusts and tariff, caused women to take a1 deeper
interest in questions of public economy than they
had ever taken before in this United States
The canvassing of these questions in the
homes of the land, the plain, matter-of-fact
logic of tho wives who told their husbands how
difficult it was to fill the market-basket, worked
in the minds of husbands, and the result was
seen when the votes of thoso husbands were
The nation owes a great debt to the women of
the democracy. Buffalo (N. Y.) Times.
WHY NOT STAY AND FIGHT IT?
We respond to the farewells of Joseph W.
Bailey, senator from Texas, with regret tem
pered with resignation and hope. He sees in
the initiative and referendum the end of repre
sentative government. We see in it nothing but
the extension of popular government.
It is as old as American liberty. We have had
It always. It comes to us now under a high
sounding name. It is going to submit many
questions to the people, some of them trifling
no doubt. Yet we have had this power from the
?TrBA a,nLwe are exercising it somewhere in the
United States every year.
Just now in the nation we are about to recall
by constitutional amendment an income-tax de
cision and we are preparing to recall the method
by which United States senators have been
If Mr. Bailey is so apprehensive of popular
rule, why does he not stay in public life and
fight it? New York World.
ONE NEW YEAR'S RESOLUTION
New Orleans Times-Democrat: A lot of Mr
Bryan's dearest enemies might start the New
Year right by resolving not to do any more wor
rying over whether the Nebraskan is to enter
President Wilson's cabinet. ntep
INTERFERENCE BY FEDERAL COURT
Governor Byrno of South Dakota, in his first
message to the legislature, spoke plainly of in
terference with state laws by federal court.
Tho governor said: "It would seem that no
effective regulation of freight and passenger
rates on state lines is possible so long as the
lower federal courts are permitted to annul
and bring to naught all efforts on tho part of
the people of tho states to secure relief.
"The people do not so much complain of any
specific decisions by the courts as by the con
temptuous way in which they trample on state
laws, and hinder state officials in the per
formance of their duty in enforcing the laws
when no decision or judgment on the merits of
such laws has been rendered. It was the boast
of the representatives of railroads that in thir
teen minutes after the governor had signed at
Pierre the act fixing, passenger fares at 2 cents
per mile, the federal judge at Sioux Falls had
signed his sweeping order restraining the attor
ney general and all state's attorneys from at
tempting to enforce it."
The governor in his message said that vari
ous injunctions and the suits growing out of
passenger and freight rate reduction cases have
been pending for periods ranging from two to
six years, without a decision one way or tho
"In this case," he said, "South Dakota is in
the same condition as many other states and, in
fact, that of all other states where rate regula
tion has been seriously attempted.
"Our stato freight rates are so high as to
practically prohibit exchange of certain classes
of commodities between different parts of tho
state and to work serious injustice to shippers
of nearly all classes. For instance, the rate on
grain, flour, mill stuffs, etc., from Mililer to
Watertown, 150 miles, is equal to the rate from
Miller to Minneapolis, 300 miles. Parties re
cently shipped oats from Brookings to Miller,
paid regular Minneapolis rates to Miller, though
the distance is less than half-"
The governor said, that passenger rates also
were "not only high, but extortionate," and that
he believed the time has come when all public
utilities should be brought under control of the
board of railroad commissioners.
"The law," he said, "should authorize tho
attorney general to call for and examine the
books of any corporation doing business in tho
state, regardless of where its office may be."
Other recommendations include:
Strengthening of corrupt practices act with
effective limitations as to funds.
Enactment of bank deposit guaranty law.
Regulation of investment companies.
Appropriations for state representation at
Enactment of law limiting number of saloons
to not more than one in a town of 1,000 or less
and others in proportion.
Submission of question of amending state
Board of control and a board of regents to
have charge of state institutions.
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