Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-21

has been in progress for nearly year with
| out there resulting from it, not only a
check to new investments, to new PROPOSE
tons, but also limitation of demand which
| causes market more or less duh, accord
ing to the extent to which the limitation of
/ the demand goes. There is an impression
| that Wall street is something apart from
the rest of the nation. 1t is something like
| the view sometimes held by public men that
| the New York post office is a purely local
| institution; and yet the New York post office
| is of quite as great Importance to merchants
| and manufacturers elsewhere in the country
| as 1t is those of New York city. 1t
| once said by a former Postmaster General
| that the pulsations of its mighty heart are
| felt all over the country and the world. So,
too, the pulsations of the financial heart of
| the country. which is New York. even
| more speedily and perceptibly felt than are
those of the great center of the postal sys-
| tenn of this country: SO that Wall street
| cannot experience reverseS without ultimate
| ly the effect of them being also felt through
| out the country. Wall street is not cause:
but it Is reflection of all the mighty
| agencies that make industrial commercial
| and agricultural prosperity, as it is an i'm
portant reflection of all the agencies which
| make depression and distress. Wall street
| does not cause all panics, although panics
| are usually first developed there
Our Currency System.
| Mr.. Hepburn was asked if. in his view. the
currency system of the United States was in
any way responsible. He replied that. while
| there wre certain archaic features of our
| currency system. certain defects that
Should be remedied. yet, the whole il is
| now in a healthy and confidence giving con-
dtion.
There is no reason" he continued, why
there should be any distinction between the
revenues received for customs and those
! received from internal taxes. so far the
| utilization in the discretion of the Seere-
| tary of the Treasury and in the form of
| 1Af,,l sg mad th.a
| funds which are now required by law
| because collected from customs dues-to be
kept In the treasury until paid out for gov
eminent expenses were available for the
public uses, the funds collected from in
ternal revenues are. that would be a meas
ure affording considerable relief especially
! in times of stringency. AS to what is called
asset banking, / am not of the opinion that
| the country Is ready for IL. whatever may
| be said of its merit as an abstract PROPOSE
| ton. The people have become familiar
| with a bank currency, which they know is
as good gold, because the entire faith
of the nation, as expressed in its bond. Is
behind this currency.
As Good as Gold.
"A bank note issued by a bank at East
port. Me, passes readily in circulation
in San Francisco as does a greenback or
silver Certificate, and there is no exchange
upon it. This sense of absolute safety
will. feel, prevent any Congress at present
from approving any method of securing
national bank notes that differs from the
present one. The government bond which
stands behind the note is sure pro-
lection as bullion itself would be.
fIt has seemed to me, however. that 1t
might be worth while for Congress to pass
such law would permit the Secretary
of the Treasury, in his discretion, to grant
| to any national bank, in time of emergency
the right to increase its circulation up to
certain ratio of its capital. But, of
course. a currency Of that kind should be
made automatic. so that 1t would be in
stantly retired when the emergency was
passed; and that can be done by taxing 1t
at such figure to compel its retirement
when the rates for money reached a nor
NAL figure. That is exactly what happens
when the New York clearing house issues
its certificates, something that is done only
in times of great emergency. The tax upon
these certificates is sufficient to compel
their instant cancellation when rates for
money become normal Nothing should be
done which would make IL possible to in
fate the paper money of the United States
A Promising Outlook.
1.-The natural increase of national banks
and the new circulation thereby provided
and the certainty that for many years.
probably. the gold mined each year in the
United States and in Alaska will increase
the circulating medium by S75.000,o00 or
more, ought of itself to provide whatever
additional currency lHe
full growth of business and production in
the United States makes necessary L am
certain that the great development of the
west, its capacity to produce noble harvests
on the whole-for climatic Influences in one
part of our country do not affect all parts
unfavorably-the opening up of much OF
the yet undeveloped west, WILL of them
selves, speedily provide surplus capital.
which when il is secured, may make pos
sible renewed Investments, renewed enter
prises, and thereby a renewed season OF
prosperity"
II is now reasonably certain that by rea-
son of the warnings given by Mr.. Hepburn
and Others and. IN addition the precau-
tionary measures adopted by the Treasury
Department and the leading bankers the
financial and business condition of the coun-
try is to be In the closing weeks of the
year satisfactory. 1t Is expected that after
the new year there will be a healthful re-
vival of investment which viii follow an in
crease of surplus capital.
DANIEL STRONG.