The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-11-12
Cumbersome Federal Laws.

| treasury department necessary to Civ
| some relief.
Cumbersome Federal Laws.
Ordinarily the operations of our govern
ment finances add to our difficulties rathe
| than help the situation, and the best tina
the secretary of the treasury can dt
when called OH to help the situation IL
merely to undo some of the harm which
has been done by the operation of Oil
laws for the collection of the revenue anc
the boarding of money In our treasury
The Federal government, under existing
laws, continues to collect a large surplus
revenue and lock n large part of tn.
money collected up in its vaults where II
Is no longer available for business In 1892
there was in the treasury as assets $l5l,
600 900. BY 1897 this had grown to s266..
100000 and on Sept l. 1902, the treasury
had In its vaults as assets 1914. 100000 ol
one-eightit of all the money In the United
States. 1t Is anything but n help to bust.
ness to take money from the people by
taxation, simply to lock it up in this
way. 1t is almost equally harmful tc
take money which is needed for business
enterprises of all kinds and for which the
people would gladly pay 8 or per cent
and buy bonds with it on basis which
nets under 1a per cent; and yet this
is the way the secretary of the treasury
can best undo the harm caused by the
laws now existing. Something should be
done to more nearly eqnalize government
receipts and expenditures. We should
years ago have changed our obsolete sys-
tenn SO that the funds OF the government
can stay in the channels of trade and not
he locked UP in vaults by the hundreds
of millions.
The Weakest Point.
t. t., i.
of our banking system is in its provisions
for dealing with such a situation as
seems before us today. Nothing could
better illustrate the necessity for Il more
elastic banking currency than the de-
mand for it at the present time. Our
banks have been and are being called
upon to furnish the currency and credits
necessary to move enormous crops, prob
ably the largest in volume and value the
country has ever produced. We have
raised over 1000 600 bushels of grain
worth at least l,S00000. and 10, 0O0,000 bales
of cotton worth $3O0.6o000O. With the otli-
er varied products raised the total value
VIII probably be about $1,000, 100000. This
call for currency comes at IL time when
all business is being done on an enormous
scale. OF course this crop does not all
move at once and some of it is used
where 1t is raised. but enough of it to
require very large amount of money
must be financed in some way within Il
few weeks. Much of it is done on bank
credits not requiring actual currency. but
the currency required IS enough in vol
unc to be a large and difficult matter to
handle each year. This year it has been
more so than usual and has been a cause
of considerable anxiety. III the farming
states where this harvest is being gath
cred. there are 9295 banks with $602 900 0O0
k<,l n IN
people who want this money advanced
against these valuable and readily sal
able products own lands valued at Sl3,-
614 100000; have farm implements and ma
chinery worth $761 .0OO000 live stock HTorth
s3,0iSOO0. and raise over $I90O,0o0 worth
of produce each year.
Wants Credit Currency.
1t would not be any undue expansion or
imitation if these banks had the privilege
of issuing In addition to their notes COW
cred by bonds an amount of uncovered
notes equal to say so per cent. Of their
covered issues. Call it credit currency,
asset currency or emergency currency. or
what you will \ small tax will provide
a guarantee fund which will absolutely
protect the noteholdcr and the public A
graduated tax and ample provision for re-
demption will insure the retirement of
them ceases. Such notes have been found
safe and satisfactory in other countries
i hey VIII be moro SO here where we have
abundant basis for the credits and n
great need for such an improvement in
4 banking system which, in all respects
but the lack of elasticity of its currency,
IS most excellent. There has been no sys-
TEN OF banks in this country as good as
our national system, and no system in
hp l,ntt
make this Improvement. which Is almost
all 1t needs. Our people believe in the
1ational banks and we'll they may. Moth
ng could be better than the quality of
heir notes. which have never resulted
II the loss of a dollar to a noteholder,
rhe total loss to depositors since the be-
ginning of the system is about S34. .OOO, 600.
This is only about S-l00 of ! per cent of
he average amount on deposit and the
smallest fraction of the total amount of
deposits handled. With an elastic cur
ency We need ask for little moro inn
'rovement in our national banks. They
would be the best banks in the world.
John Johnston, vice president of the
Marine National bank OF Milwaukee.
spoke on "The Scottish Banking Sys-
en-" and Joseph d. Brown, president
# the Citizens National bank, of Raj
The convention then adjourned until
omorrow.
An informal reception was given the
'isitors in the Palm garden at the ST.
,harles tonight.
The trust section of the American
5ankers' association met this after
loon and heard the reports of commits
ees and several addresses.
A. c. Stewart, of st. Louis, spoke on
The Trustworthiness of Trust Com
'any." Clark Williams. of New York, |
vas heard next on more Adequate
Protection of Municipal Bonds Through
he Certitication of Trust Companies.
Y. O. kittredge, of New York, fol- |
owed. j. ID. Brown, of San Francisco,
poke on 'The Development of Trust |
Companies ON the Pacific Coast"