Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-03

dition which Is tho occasion OF their e1
istence. The only persons VINO "ouio
know of it's existence would De the coh.oi
Ter, the bank and the rev people wno
would take sufficient interest in the pup
lished statement of the bank to compare
the volume of circulation with the amount
of government bonds on deposit IN tne
treasury Prominent among the benents,
substantial guaranty against sudden IN
crease in interest rates. and an equaiiy
important guaranty against dangerously
low rates of interest. Each locality would
be able measurably to provide TOT It's own
emergencies.
Plan Tried in Germany.
But YOU say this would be no aid to
commerce under ordinary conditions. I re-
ply that under ordinary conditions the pres
ent volume is sufficient, and the country
might we'll rejoice whenever the controuer
was able to report no dollar of this addi-
tional circulation in existence. 90 not
intimate that this is the only way to Sc
cure elasticity. l only say 1t Is one way
and It is an effective way. and 1t possesses
no element of imitation, but would afford a
verv respectable cushion against sudden
financial conclusions. 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 vet important as the element Of elias
ticity 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
reserve Of 100000. During August, 1908,
they had a surplus reserve in their vaults
of So 900 600 In the meantime the trust
companies in that city increased the reserve
| in their vaults $15.OOO.OO0 l have good
reason to believe. in fact. have very posi-
| tive assurance. that banks generally have
| safeguarded themselves materially. Inc
shock that was felt in every central re-
serve city and promptly communicated to
| every local money center from the Atlantic
to the Pacific coast. and from the chain OF
| lakes to the gulf. on September a. NV. as
| was then predicted. has proven a blessing
Wherever that shock was felt little more
| care has been exercised that 1t be not re-
| peated In 1903. am not saying that 1t will
| not be repeated. 1 am making no predic-
| ton. 1 am simply saying that during Au-
gust 1903. the banks of New York, and
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 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. want to lay down this prop
| osition: There exist today no one fact and
no combination Of facts the logical sequence
| of which suggests disaster. II disaster
| comes it will be psychological and not logi
| cal. The microbe If it exists is In the
| mind: 1t Is not elsewhere
Necessity Of Forward Step.
Assuming, them 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. l have
| already stated that we are the greatest
| producers In the world The balance OF
| 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 rs per cent of our surplus. The
| United Kingdom. with only per cent OF
| the people of the world. will not always
| consume 40 per cent of our gross surplus
| This Is not a political gathering, and we are
not expected to have political desires. but
| we are expected to have pretty good busi.
ness sense, and to that business sense
| make appeal when ask how shall we ac.
quire more markets? There are three ways
suggested. One is to voluntarily and gra