The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-09-03

the comptroller. by the deposit or ALI
equal amount of lawful money with any
subtreasury.
Three things know First, this ad-
ditional circulation would spring into
existence almost instantly whenever anu
wherever interest rates advanced to the
point of profit. Second, it would as
promptly retire whenever interest rates
became normal. Third, it would be alb
solutely Safe-as good as the present
national bank issue and with a slight
and immaterial change identical in form
and appearance-for the government,
amply protected by the per cent tax,
would underWrite ii. But you say this
is emergency currency. Anything more
is imitation. 1t has the advantage, how
ever, over emergency currency So
named, and over legalized clearing
house certificates, in that it injectS into
the commerce of the country no new or
doubtful form of money, and the pres
ence of these notes will not advertise
the stringent condition which is the oc-
caSlOn of their existence. The only per-
sons who would know of it's existence
would be the comptroller, the bank, and
the few people who would take sufficient
interest of the published statement of
the bank to compare with the volume of
circulation with the amount of Govern
ment bonds on deposit in the treasury.
Prominent among the benefits, if not
the principal benefit, would be the sub
Stantial guaranty against sudden in
crease in interest rates, and an equally
important guaranty against dangerous
ly 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.
l reply that under ordinary conditions
the present volume is sufficient, and
the country might well rejoice when
ever the comptroller was able to report
no dollar of this additional circulation
in existence. l do not intimate that
this is the only way to secure elasticity.
l only say Il is one way, and it is an
effective way, and it possesses no ele-
ment of imitation, but would afford
very respectable cushion against sud
den financial conclusions, and few peo-
pie 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 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 &c.,
100000. During August, 1908, they had
surplus reserve in their vaults of
$22, 000,0 900. In the meantime the trust
companies in that city increased the re-
serve in their vaults S15.000000. l have
good reason to believe, in fact l have
very positive assurance, that banks
generally have Safeguarded 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 Pacific
coast, and from the chain of lakes to
the gulf. on September %, 1902, as was
then predicted, has proven a blessing.
Wherever that shock was felt a little
more care has been exercised that it be
not reDe 3ted in 1893 l am not saying
that it will not be repeated. 1 am MAX
ing no prediction. l am simply saying
that during August, 1903, the banks of
New York, and 1 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
purchase the winter supply of coal, than
they were twelve months ago.
I'm 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 dis
aster. If disaster comes it will be psy-
Geological and not logical. The microbe
if it exists, is in the mind; it is not else
where
Assuming, then, that we are in COM
parative health and in no imminent
danger of disease, 1 want to invite your
attention to the Importance of a for
ward step. have already stated that
we are the greatest producers in the
world. The balance of trade in our
favor nearly equals, and occasionally
exceeds. that of all other favored ma
tions on the map. We sell billion dol
lars per annum to Europe. Twenty
peg cent of the people of the world will
not always consume 70 per cent of our
surplus. The United Kingdom, with
only 3 per cent of the people of the
world viii 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
business sense, and to that business
sense make appeal when 1 ask, how
shall we acquire more markets? There
| are three ways suggested. One is to