The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-03

for the government, amply protected by
the per cent tax, would underwrite II
But you say this is emergency currency
Anything more is imitation. IL has the adj
vantage, however, over the emergency cur
rency sornamed, and over legalized clear
ing-house certificates, in that IL injects into
the commerce OF the country no new or
doubtful form OK money and the presence
of these notes will not advertise the
stringent condition which is the occasion OF
their existence. The only persons who
would know of its existence would be the
controller, the bank, and a 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 benefits,
If not the principal benefit, would be the
substantial guaranty against sudden IN
crease In interest rates, and an equaliy
important guaranty against dangerously
low rates of interest. Each locality would
be able measurably TO provide for its own
emergencies.
But you say this would be no aid to
commerce under ordinary conditions. re-
ply that under ordinary conditions the
present volume is sufficient, and the coun-
try might well rejoice whenever the con-
troller was able to report no dollar OF this
additional circulation in existence. L do
not intimate that this is the only way
10 secure elasticity. | only say il is one
way. and il is effective way, and IL
possesses no element of imitation, but would
afford a very respectable cushion against
sudden financial conclusions, and few
people ask more. There is nothing original
or novel In the scheme. Ii is simply the
German plan slightly modified TO conform
to our present system
ELASTICITY NOT ESSENTIAL.
land yet important as the element of elias
ITCHY may be, it is not an essential to our
prosperity. During the month of August
1902. the associated banks of New York had
an average surplus above their required re-
serve of s1oOoO.oOo. During August, 1903. they
ha1 m a of
coo 900. In the meantime the trust compa-
MES in that city increased the reserve in
their vaults s15,O0O0O0. 1 have good reason
to believe-in fact, 1 have very positive
surance-that banks generally have safe
guarded themselves materially. The shock
that was felt in every central reserve city,
and promptly communicated to every local
money center from the Atlantic TO the Pa
cific coast. and from the chain Of lakes to
the gulf, on Sept. %, 1902, as was then pre-
dicted has proven a blessing. Wherever
that shock was felt a little more care has
been exercised that 1T be not repeated in
1903. am not saying that ii will not be re-
peated. am making no prediction. l am
simply saying that during August 1903, the
banks of New York, and believe the banks
| throughout the country, were In better con-
dition 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 purchase the winter sup
ply of coal. than they were twelve months
| ago.
| I'm closing this branch of the case, as
| we lawyers say, / want to lay down TINS
and no combination of facts, the logical Sc
quence Of which suggests disaster III ois.
aster comes it will be psychological and NOT
| logical. The microbe, If 1t exists, is In the
| mind; it is not elsewhere.
| FOREIGN MARKETS.
Assuming. then, that we are in compare
tive health and in no imminent danger OF
disease. / want to invite your attention to
| the Importance of forward step. have
already stated that we are the greatest
| producers In the world. The balance or
| trade in our favor nearly equals and occa-
sionally exceeds that of all other favored
nations on the map. We sell billion dol
| lars per annum to Europe. Twenty per
| cent. of the people of the world will not
always consume 70 per cent. of our sur
plus. The United Kingdom, with only 3
per cent. of the people of the world. Will
not always consume 40 per cent. or our
| gross surplus.
This is not a political gathering, and
| we are not expected to have political de-
| sires; but we are expected to have pretty
| good business sense and to that business
sense 1 make appeal when 1 ask, how shall
we acquire more markets? There are
| three ways suggested. One is to voluntar-
less widely ajar and permit more freedom
! of Importation, in the hope that other
countries will set their doors more or 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 pref
erence to those countries which favor us
| with an open door, or do you buy where
you can obtain the desired article to the
best advantage? Do you purchase your
she buys $6o0,O000O0 of our gross exports
without the imposition of customs duties.
or do you purchase in France and Ger
many. Notwithstanding tariff exactions
upon goods coming from the United States
We have tried this experiment with Brazil.
We annually buy of her more than s70.000.-
900 free merchandise, more than 40 per cent.
of all she has TO SELL and sell her $40. 900 0O00,
10 per cent. of what she has to buy.
Another way suggested is to trade COM
| plimentS-to exchange trade privileges-to
set our doors somewhat ajar for the special
| advantage of one country on condition that
it shall set its doors ajar for the special
| advantage OF our people. Considerable has
been said along this line, but not very
much has been actually accomplished.
SUBSIDIES SUGGESTED.
ST do not wish to discuss the merits of
either Of these methods, but / do wish to
suggest third. and 1 sincerely believe the
only method by which we will ever get our
share of the commerce of South American
and South African countries and OF the
islands lying south of the equator The
| policy which resulted in creating the COM
merce Of the Pacific slope was substituting
lines of communication with the Pacific
slope. When the first transcontinental lines
of railway were built there was not suffi-
cient commerce to pay operating expenses
| to say nothing of dividends on investments.
7 Few business men and fewer politicians
objected to government aid to transconti-
| mental lines during the development period
| of the commerce along these lines. These
railways need no assistance now. No bust
ness man objects to government aid 10 the
commerce of our navigable rivers, and no
political party objects to large expendi-
lures on nonnavigable streams. Improve
ments to rivers and harbors is subsidy 20
the commerce Of rivers and harbors. 1t we
ever secure the trade of the countries 10
which / have referred, we will first secure
regular lines of communication with these
countries and If we ever secure these lines
| assistance must be afforded Who of you,
owning a steamship, would divert il from
participation in transatlantic commerce
where there is much to be done, and send
II on regular trips TO countries where we
have little or commerce?
do not misunderstood me. / am not
mourning the defeat of any ship subsidy
BILL but shall mourn exceedingly the de-
feat of a BILL if any such shall ever be in
troduced. which, IL enacted, would insure
regular lines of American ships, flying the
American flag and carrying American
merchants and commercial travellers, with
their wares and merchandise, the product