The evening times., 1900-10-04

within five years by much more than 100
| per cent. we have built up credits which
| have enabled US TO subscribe to several
large foreign loans from our surplus
! savings. Russia, Japan, and Great Brit
| ain have touched the fountain OF our
| credit. and abundant streams of wealth
have gushed forth for their use.
The Up ttStl StRses in the meantime
| has heeoLle a colonial power, and is
| profoundly interested in the settlement
of the future Gf China. 1t is probable
| that the interest awakened in the al
| fairs OF the Orient Will lead to large in
| vestments of American capital IN emma
and the Philippines, and that the secu-
rites issued for these investments will
be quoted on the stock exchanges of the
world, like the bonds of the Egyptian
| Government or the Greek guaranteed
| loan. All these events have contributed
to bring New York into the circle of in
ternational money markets and have
| raised the question whether the star OF
financial supremacy was not to move
westward from the precincts of Lombard
Street to our own chief city. These ex-
pectations may require time for their
fulfllment but it is already evident that
New York is to be more important
factor than heretofore among the money
markets Of the world, and may at least
dispute for the second place after Lon
thy cities of the continent.
The Part of Legislation.
t'The magnitude of the transactions now
carried on in New York is shown in a
slight degree by the settlements through
the clearing house, which rose from a lit
| tie less than thirty thousand millions
! (S29, S41, 796, ,924) in 1895 to more than fifty
seven thousand millions ($57, ,36S, ,250,-
in, hon, of
| 1855 were attained in certain earlier years
| of active business operations, but the VOL
ume OF clearipgs was then swelled by
! stock exchange business, which was great
ly reduced Ly the opening OF the Stock Ex-
! change Clearing House in 1892. If the old
method of stock exchange settlement had
! continued il is not unlikely that the clear
| ings of last year would nave attained $75,-
| 00O, eco GOO, or an increase of more than 30
| per cent over the highest previous record
| in 1851 The actual figures Of the clear
[ ings at New York are larger by 25 per
| cent than those at London. heretofore the
! great clearing house of the world. and
| nearly three times the payments into the
! Rank of France, which operates as a sort
| OF clearing house for the traffic Of France.
| The volume of the obligations of the na-
! tionai banks to their country correspond
| ents is added evidence of the volume CT
! business which IS cenLring in the hands
! Of New York financiers. The obligations Of
| New York national banks TO other banks.
including State and private banks, which
| were Cnly 5000, Geo in 1889, rose TO more
| than S425 Gee 090 by the last report TO the
! Comptroller of the Currency. New York
| thus fuly- justifies the declaration OF Mr..
Horace White that the city is "a clearing
| house for the whole country as well as for
| its own immediate traffice.'
! Supremacy among the money markets
| of the world comes only by a combination
| of favorable conditions. 1t comes partly
as the result Of industry, thrift and en-
| terprise. which create a great inves tment
! fund after the necessary machinery OF pro-
| duction aud exchange has been fairly pro-
| ylded at home. but it comes also as the
| result of far-sighted and welI-directed poll
| icy in legislation and in business meth
| DDS. The part OF legislation is small, so
| long as freedom is left TO native skill and
enterprise to develop along natural lines.
/ Legislation becomes important in many
| countries as disturbing and retarding fac
| tor in business progress, and it is against
| such legislation that Intelligent business
| policy should be directed. The part whica
| positive legislation has 10 play In national
economic progress is chiefly to afford the
guarantees OF security and order, the exe-
| cutiOn Of contracts according TO their hon
est terms, and the enforcement by law OF
the highest principles of business honor
ally harmful and often hampers rather than
advances q country in its progress toward
Industrial and financial supremacy"
Mr.. Barnes said in part:
Taxation is a necessary function ot
government. Perhaps IT should be horne
proportionately by those who have made
taxation inevitable and those who expect
to derive the most benefit from the expen-
diture Of the revenue. Most of our pres
ent bank taxes originated in the Spanish
war of 1898 when our people, frenzied by
the loss Of the Maine, OverTan the eartt
with hollow ships and marching armies
Now we must pay the piper who furnished
the field music fer that great Anabasis
If you ask me who is responsible for tht
war and its consequences, l answer. tht
American people. And who viii TSF tht
most advantage from its successful con
duct. The reply is again, the American
people.
ITO provide for this unusual expense
| our comfortable Government which Ea(
enough and to spare under old conditions
enacted the War Revenue law Of 1898
This law seeks to take tithes of capital
rest and tolls of capital in motion. 1t /:
very ingenious and inQuisitive. II search.
es the corners of every mart and bring:
many hidden things to light. If in tht
multitude of your possessions, gentlemen
| there is anything you have overlooked OF
mislaid, the tax collector will ind it foI
you whether you acknowledge his service.
or not.
+-Of course. banks are always a shining
mark when the arrows of assessment arr
| flying The assessors take the famou:
advice which the father gave his son: L
you want money. go where money is.
It makes no difference that we are not tht
owners, but only the custodians, o
wealth. Our incorruptibility. impervioU:
to temptation, makes US fit for our posts
and-keeps US poor. The difference be
tween the tabled Tantalus and ourselve!
is that he could not reach the tempting
treasures dangling before his vision
whereas We can, but we will not There
fore we suffer not only the pains OF Tan
talus. but the additional agony of resist
ance to temptation.
Complains of War Taxes.
without attempting a close and seriou!
| analysis of the revenue law, remark tina
the banks contribute to the country's wa,
fund in Two ways. First, directly in tn,
form of the two-mill rate on capital ant
surplus. A wise and learned ATTORNEY
General decided last spring that surplus
does not include undivided profits Under
this ruling two banks with precisely ths