Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-12-07

It's lS marked. trust companies III
New York City held less than $260,000,-
600 ten years ago. and they now hold
more than $s75,0O0,000, while deposits
In national banks have increased from
more than $550,000,00O to fraction
less than $1.1O0,0o0.000. Thus, trust
company deposits show an aggregate
growth Of $6b. 100000 more thar nation
al bank deposits. and q growth OF 240
per cent as against 100 per cent in ma
tional banks.
It IL manifest from the foregoing
data that these institutions In our great
cities, helpful as they have been to
American development and commerce,
unless conservatively managed. may
become an element Of danger to our fl
nancial system. They are already ma
tional In character, and several of
them are Of International influence. I
suggest the propriety therefore, OF
law giving trust companies of large
capitalization in large cities the priv
ilege Of incorporating under federal
law, with corresponding supervision.
II such right were extended, the more
conservative would probably avail
themselves thereof, and this would
compel others to cultivate conserva-
ttsm. 1t would not be necessary to
extend to them the distinctive prerog-
atives Of national banks beyond the
capacity OF being designated financial
agents OF the government, thereby
justifying federal jurisdiction; nor
should they be brought into compett-
tion with commercial banks, but they
should be required to keep an appro-
pirate. though relatively small, reserve
within their own vaults, lest In times
Of financial distress their large depos-
It's with national banks increase rath-
er than diminish the evils OF financial
panics. These great concerns, Of prop
crly and conservatively conducted, may
prove of great and even unforeseen
advantage to public as well as to pri-
vate interests; and the best time to
safeguard the country Is when skies
are clear.
Panama Bonds.
have heretofore called attention to
the fact that the bonds already au-
thorixed for the construction OF the pro-
posed isthmian canal will not be avail
able as security for national bank cir
culation at less rate of taxation than.
per cent per annum. The recon-
mendation is repeated, therefore. that
future issues of government bonds be
made available as the basis OF circula-
tion. on the same terms as the consols
authorized by act OF March ~, 1900.
Drawback.
Wise provision has been made for the
expectation, with benefit OF drawback,
IL imported merchandise and OF manu-
factures. composed in whole or In part
OF imported material. The treasury
department has endeavored in every
feasible way to simplify the application
cestt.is privilene and to make Its oper-
alton practicable. Many difficulties
exist, however. annoying to exporters,
which can only be removed by legisln-
tion. / therefore recommend the care
ful reconstruction of the drawback
laws with a view to their ssmplifica-
ton, and especially that the privilege
OF drawback be extended to barrels
boxes, cans and other receptacles, tho
imported in completed form, when ex-
ported filled with American food pro-
ducts. A carefully safeguarded sys-
tenn of substitution similar to that nov
in operation in France would undoubt-
edly increase to some extent our ex-
port trade. Several other extensions
Of this privilege could, in my judg-
nent, be wisely made. am also Of
the opinion that in applying these laws
greater discretion could be safely lodg-
cd with the secretary Of the treasury,
the exercise of which would overcome
many unforeseen difficulties and fra
ouent technical obstacles.
LESLIE M. SHAW,
Secretary of the Treasury.
To the speaker Of the house of rep
ra entativeS.