The St. Louis Republic., 1905-10-12
REPCRlLC SPHIAL

RE:PCHlLC SPECIAL.
| Washington. Oct ii.-Representatives OF
| ct. Louis. As well As those OF trust con-
pen!es OF other large cities. are starting q
ers' Association Is in session. which tn
| wolves Federal LEGISLATION tina, would ma
t.oraixe trust companies. The proposition
| !s TO provide the same Federal supervision.
the same Federal restrictions. and the
same Federal support for trust companies
that IL now provided 10 the national banks.
Of the Mercantile Trus; Company. ex-
pressed himself quite positively to-day in
favor OF such q Law. There exists q wide.
spread sentiment in rs favor among all
They say that they are really and eager
to maintain the same cash reserves that
Many Of them 10 50 Row. ire respec;ive II
the fact that 10 Law compe!s such
course. The opinion Is that an &C, Of the
kind would operate both 10 the advantage
oS the legitimate ;r.st company. and TO
the disacvaDtaS" o: mushroom concerns
that use the cover OF the rlms- The main
shall appear IN a trus: co:npany's title Il
shall carry all the significance that The
word carries IN reference :. bank.
NEW LEGISLATION NECESSARY.
There prevailed IN the important speech.
es before the convention here to-day IN.
sentiment mat 'indEcisl legislation IS
Thir,y-,hree hundred bankers ap:,laudei
Secietary Shaw Ia the echo when h.
finished lengthy address. the burden OF
which va. panorama Of N. prosperity
OF TIE country CDntcae'.l with Il none
tafy system which - snr.Nib!" a,d liable
time.
Frank o. vanderlip of the City National
Bank Of New York. former Assistant
Secretary OF the Treasury. saw the same
setretsyv ash shaw S suS sur.essei saw iI femsav
heavily taxed national baak.noce currency
which would be drawn forth at times Of
Of tax b. retired i,nmec.iatel! upon
changed cnnri:ioEs.
M:. vanGerlip had no advice 10 offer.
GOLD INCREASE: PATENT.
The ease with which the financial world
w.'hsioui the strain OF a war which cost
,ne ccInbarant nations two billions Of dol
larI. MI. Nane-rIip said. n. believed was
due 10 the increased production of gold
'ion he also gave ;he credit for the recov-
cry from Industrial depression GurinI the
last three years.
Al tn" .an. time he expressed the be.
!:ef that In this very instance there was
possible future disturbance Of values.
SSrHid the present rate Of production con-
tn" wori! would ~ doubled in twenty
S"dr-. with fh' result that many cnni'noi!-
ties prices would he greatly increased
possibly doubled. WIFI. tn. increase In
tie supply of :noney would tend to al
vance the price -: real property. however.
the price 81 an "hlisaiion r'rayahle in
sons having a fixed income. persons ..-
c.ivirS Il fixed salary. wsSe-earners
generally. would bC n; a disadvantage for
their incomes would not tend 20 Increase
as rapidly as the purchasing power O: their
incomes decreased.
He believed that ;h. theory Os the
classical economists that with the doUh-
ling OF the gold stock would com. a
doubling Of prices. would not hold entire
ly good. such a :eSJ,; he thought would
he prevented by' the exploitation or virgin
fields of development. such as followed
The discovery "f Ersa: quantities OF gold
in Mexico. Peru. California and Australia.
and that the next few Years would wit
ness III" expansion Of tra field OK CONF
mcgcial eut rrp-ises into many new places
DANGER IJRkS IN FUTURE:
He declare! the outlook al tho present
tim" Z" hc very bright. bu: gave warning
tta; almost as surely there were DANCE:
lurking IN the situation.
Should stock market speculation
start from III. present high level ~
prices In tho face OF N. extraordinary
demand for capital and money. which
crops and bUsiness al:k. are making
said he. the result Nigh, easily he tenn
rorary disaster. Although there may he
MANY favorable features 10 the outlook. IL
is 10 tim. for prudence :o l.. east To the