The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-11-30

or at least should be, in the highest de-
gree automatic, and the injection of any
thing into the situation which vitality
/ detracts from its automatic character
{ represents an economic loss. 1t is sur
prsing that SO obvious a fact should
have been SO persistently ignored. Moth
ing is SO calculated to weaken ones APP
probation of the alleged keenness of the
American people as their Treasury pol
| icy. We are a very active and energetic
people, and, by reason of our pronounced
assertiveness, we have gained the repu-
tation of being one of the most efficient
races on the face of the earth. Per-
sonally, we are of course disposed to ac-
cept this view; and yet, when we reflect
on the childishhness of so many of our
political and economic policies, we are
! sometimes led to question If our re-
markable success in material affairs is
not due in a maximum degree to our
wonderful natural resources, and in
minimum degree to our native and ac-
quired ability. Of all the acts of short
sightedness which have characterized the
governmental policy Of the American peo-
pie, none can begin to compare with that
OF entrusting such power to one as is
possessed, under our scheme, by the Sec
rotary of the Treasury. A perfected hui
man nature might conceivably be safely
endowed with such functions: but none
of us possess perfection, either of in
telligence or of moral character We
are all liable to blunder and it is a de-
lplorable fact that most of us are not en-
tirely exempt from the pressure of self
interest. Deficiencies of such sorts are
drawbacks enough in the conduct of the
lesser affairs of life; in connection with
great affairs, they assume the character
Of terrible menace. It is a shame
that the functions of the finance minis
ter of this great nation should be such
as to expose him continually to the sus-
picion, however. ill-grounded this may be,
of executing his trust in a spirit not al
together disassociated from the spirit of
vulgar political expedency
"1'he Secretary of the Treasury should
be excluded from such participation in
the affairs of the money market as he is
at present allowed; not only in order
that he may be freed from all danger of
finding himself in a compromising at
titude, but also as a means of remov-
ing a constant and powerful menace to
the economic welfare of the nation"
This clear and able arraignment of
the Roosevelt ADMINISTRATION for using
the wealth and power of the Treasury as
political annex to the party in power
is not made by political paper 1t is
not made during a heated campaign. 1t
is made after the election by a great
financial journal. It is vindication of
the criticism of the policy of playing
politics with the national finances during
a campaign for political ends. The m
lawfulness of the act of Secretary Shaw
is not dwelt upon by the Investor, but
the danger and wrong could hardly be
more strongly emphasized. 1t ought to
convince those who have regarded Re-
publican government as safe and prudent
to readjust their views.
The Investor concludes its able and
powerful article thus:
'The fact must be clear, to any one
who has studied the situation in this
country with any care, that there is too
much politics in our banking and too
much banking in our politics. The one
the other. No Secretary of the Treasury
should be allowed the power to harrass
and unsettle the money market and 10
banker or banking institution should be
allowed the means of coercing the Treas
ury. The finance minister of the Uni
ted States should be precluded from n
necessarily draining the money market
of its nfe-blood at one moment and
subjecting it to a plethora the next. It
is not so much question OF high money
or low money with the money market,
as 1t is question of stable conditions;
and the whole treasury policy Of the ma
ton seems designed to keep monetary
conditions in state of continual fux.
Least of all should the temptation be
thrown in the way of an administration
to use the Treasury as a mere instru-
ment for the perpetuation of itself i'll
power. On the other hand, the Treasury
should be so completely severed from par
ticipation in shaping the destinies of the
money market, as to prevent designing
private interests from attempting to use
1t, consciously or unconsciously for the
promotion of private schemes. The peo-
rle to bring about the desired reform
are the bankers of the nation The le-
sired end will not come about without
agitation and hard work. Ephraim was
rot more Joined to his idols than the
American people have been to their in
dependent treasury system. Of course
the independent treasury system is not
the whole Of the evil. A peculiarly vicious
feature of our system is the power which
the Secretary of the Treasury possesses
by reason Of his having continually
vast amount of redundant revenue to dis
pense as largesses among the national
banks, in the shape of government de-
posits. The time may come when this
particular power may tend materially to
the lowering of the political rectitude
OF the nation 1t is a tremendous in
| strumentalty for one man or one coterie
OF men TO possess. We have here an in
centive to place our taxation laws on
a more scientific basis. We should curb
cur prodigality in the matter of raising
revenue; not only because we arc TAX
ing more moncy out of our pockets than
we can we'll spare, but also because epor-
/ nous redundant revenues are great
| cf IN IF xySri SORTS.