Jasper County Democrat, Volume 16, Number 102, Rensselaer, Jasper County, 28 March 1914 — New System of Currency Will Save Us From Repetition of 1907 Panic [ARTICLE]

New System of Currency Will Save Us From Repetition of 1907 Panic

By LESLIE M. SHAW,

Former Secretary of Treasury

THE ONLY ELEMENT OF ELASTICITY IN THE NEW CURRENCY LAW IS THAT WHICH PERMITS THE FEDERAL RESERVE BOARD TO LOWER THE RESERVE REQUIREMENT, AND THAT IS NOT AUTOMATIC ELASTICITY. IT IS OFFICIAL RELIEF MADE NECESSARY BY THE WANT OF ELASTICITY. IT WILL SAVE US FROM A REPETITION OF 1907. : »s at k Whether the new sv-lem will succeed in XG OUR CREDIT SYSTEM IS PROBLEMATICAL and will depend largely on the wisdom of the hoard. In other countries when a hill of is sold on six tv or ninety days’ time the seller makes lvis draft upon the purchaser, who, after examining the goods, accepts. Then when the seller indorses this acceptance there is created a piece of paper affording the best bank asset known to man. ' * M, IF WISELY DIRECTED AND ENCOURAGED THE NEW SYSTEM SHOULD AFFORD THOSE ENGAGED IN COMMERCE—I USE THE WORD IN ITS BROADEST SENSE—FACILITIES FOR REALIZING UPON CREDDITS GROWING OUT OF COMMERCE APPROXIMATING THOSE ENJOYED BY THEIR COMPETITORS IN OTHER COUNTRIES.