The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-11-11

legislation to promote banking and to
lessen its. risks.
I do not mean to say that bankers
should omit to do what they can do
properly and safely, to bring about the
improvement of laws regulating bank
ing and currency in the United States,
but it should be carefully considered in
every case whether more is to be lost
than is gained. Confidence, friendly
community of interests between banker
and depositor, and general good WILL
should not be jeopardlzed in the pursuit
OF fadS, or in attempting to persuade
congress to abolish with one fell swoop,
the existing order of things, sub treas
ury and all, as inadequate as they are.
to the requirements of great COM
mercial nation, and to Supplant them
with a financial system a large part OF
which. owing to our peculiar circum-
stances and political institutions, must
necessarily consist of improved theories.
That change is urgent cannot we'll be
denied However, evolution is safe, rev.
olutlOn is dangerous. The banks are
sharing the prosperity of the nation
Conditions improve. in the relation of
the federal treasury with the financial
interests of the country. Congress has
conceded many points in the line Of JUS
tlce and common sense; the secretary OF
the treasury has recently made liberal
rulings. National bank notes can be
issued on better terms than was posi-
bic q few years ago. The stock OF money
y
world grows steadily and rapidly. South
Africa was producing almost 100000 00O
in gold annually before the Boer war.
For two years it added scarcely any
thing to the worlds supply of the basic
money metal of civilization. Now the
mines of the Witwatersrand district, in
and about Johannesburg, are turning
out $5,000,000 a month. The best author
tiles agree that the production will
steadily rise until it reaches $4,000, 600
month, and will remain at or above
that level for a long time.
THE world will surely feel such
changes in the supply of gold. Prices
here have already been forced upward,
exports and the increase in imports,
beyond the dictates of prudence; and in
stlch a movement, this country is never
backward 1t is questionable whether
the lasting good of the American peo-
pie would be conserved by anything
tending strongly to loosen the money
market. Perhaps speculation needs the
check of stiff interest rates. No safe ex-
pansiOn of the most flexible clrculati ting
medium could ever match the desires
of borrowers, in the years Of spectacu-
lar money making and boundiess hopes.
Possibly existing conditions in the LOAF,
market are none too strict to curb over
imitation tendencies.
while we boast of an increase of
81 600 900 in bank deposits through
out the country in the four years last
past, we are not unlQllQIQl Oh l0e 1dct
that during that period the banks have
shown no increase in the amount of
real tangible gold money such as gold,
silver and legal tender. The loans have
/ kept pace with this abnormal growth
in deposits. During this period also we
have become indebted in the way of
/ temporary loans abroad amounting
probably to s20Q. 900, 900. Does this not
show an undue expansion of bank cred
! its, and an overlooking of the money
market with debt?
Shall we not, then. be wisely content
to promote proper financial legislation
simply as American citizens, not striv-
/ ing as an association to furnish ready
made laws on any subject? 1t would
4 be a sorry day if bankers were ever to
forget that they have peculiar respon-
sibilities which dwarf whatever posi-
BILE obligation rests upon them to take
part, as a class, in law making. I can
not believe that the country is ready tC
f accept a bank made scheme of legisla-
/ ton. However, it is more willing now
1 than ever before, to give the banks theil
/ full share in the favOrs of government
in tardy recognition of the fact thai
they are now as they were in Jackson's
day really the simple embodiment of
and receptacles, Of the active industrial
power of the people, and as such, en-
titled to an equitable participation ir
all the Astounding glories of this great
republic"