Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-09-03

of these notes will not advertise the
stringent condition which is the occa-
sion of their existence. The only per-
sons who would know of its existence
would be the comptroller, the bank,
and the few people who would take
sufficient interest in the published
statement of the bank to compare the
volume of circulation with the amount
of government bonds on deposit in the
treasury. Prominent among the ben
efits, if not the principal benefit,
would be the substantial guaranty
against dangerously low rates of inter-
est Each locality would be able
measurably to provide for it's own
emergencies.
But you say this would be no aid to
com merce under ordinary conditions.
reply that under ordinary conditions
the present volume is sufficient, and
the country might we'll rejoice when
ever the comptroller was able to re-
port no dollar of this additional circula-
ton in existence. l do not intimate
that this is the only way to secure
elasticity. l only say it is one way,
and it is an effective way, and it pos
sesses no element of initiation, but
would afford a very respectable cush-
ion against sudden financial concus-
sions. and few people ask more. There
is nothing original or novel in the
scheme. 1t is simply the German
plan slightly modified to conform to
our present system.
And yet important as the element
of elasticity may be, it is not an essen
tial to our prosperity. During the
month of August, 1902, the associated
banks of New York had an average
surplus above their required reserve
of $10,000,000. During August, 1903,
| they had surplus reserve in their
vaults of s22.000,0O0. In the mean
time the trust companies in that city
| increased the reserve in their vaults
| S15,000,000. | have good reason to be-
lieve, in fact. | have very positive as
surance, that banks generally have
safeguarded themselves materially.
The shock that was felt in every CEN
trail reserve city, and promptly COM
municated to every local money cen
ter from the Atlantic to the Pacific
coast, and from the Chain of Lakes to
the Gulf, on September 80, 1902, as
was then predicted, has proven a
blessing. Wherever that shock was
felt little more care has been exer-
cised that it be not repeated in 1903
I am not saying that it will not be re-
peated. I am making no prediction
I am simply saying that during Au-
gust, 1903. the banks of New York
and I believe the banks throughout
the country. were in better condition
to face the annual demand for money
with which to move crops, and with
which to put winter stocks of goods
in the stores, and with which to pur-
chase the winter supply of COAL than
they were twelve months ago.
"In closing this branch of the case,
as we lawyers say, l want to lay down
this proposition There exist today
no one fact, and no combination of
facts, the logical sequence of which
suggests disaster. If disaster comes
it will be psychological and not logi-
cal. The microbe, if it exists, is in
the mind; it is not elsewhere.
Assuming, then, that we are in
comparative health and in no immi-
nent danger of disease, / want to in
vite your attention to the Importance
of forward step. I have already
stated that we are the greatest pro-
ducers in the world. The balance of
trade in our favor nearly equals, and
occasionally exceeds. that of all other
/ favored nations on the map. We sell
a billion dollars per annum to Europe.
Twenty per cent of the people of the
world will not always consume rs per
cent of our surplus. The United King
dom, with only per cent of the peo-
pie Of the world, will not always con-
sumo 40 per cent of our gross surplus.
This is not political gathering. and
we are not expected to have political
desires; but we are expected to have
pretty good business sense, and to
that business sense make appeal
when | ask, how shall we acquire
more markets? There are three ways
suggested One is to voluntarily and
gratuitously set our doors more OF
less widely ajar and permit more free.
dom of Importation, in the hope that
Z other countries will set their doors
more OF less widely ajar and give us
greater freedom of expectation Some
of you gentlemen are importers, and
after this meeting adjourns would
like to inquire whether you, in making
your purchases abroad, give prefer.
ence to those countries which favor us
with an open door. or do you buy
where you can obtain the desired arti
GDE A