Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-05

that our business people, for lack Of direct
communication in the shape Of lines Of
steamers with South America, should in
that great sister continent be at dlsad-
vantage compared to the business people Of
Europe.
Currency Reform.
especially call your attention to the
second subject, the condition OF our cur
rency laws The national bank act has
ably served great purpose In aiding the
enormous business development OF the
country, and within ten years there has
been an increase in circulation per capita
from S2l.u to $33.OS. For several years evil
denCe has been accommodating that Hddi-
tional legislation Is needed. The recurrence
Of each crop season emphasizes the defects
OF the present laws. There must soon be
a revision of them, because to leave them
as they are means to incur liability OF busi-
ness disaster. Since your body adjourned
there has been a huctuatiOn in the Interest
on call money from per cent to 30 per
cent. and the huctuatlon was even greater
during the preceding six months. The sec
rotary of the treasury had to step In and
by wise action put stop TO the most vio-
lent period of oscillation. Even worse than
such fuCtuaton Is the advance In CONNER
Cial rates and the uncertainty felt In the
sufiicienCy OF credit even at high rates.
All commercial interests suffer during each
crop period. Excessive rates for call money
in New York attract money from the In
terror banks into the speculative field;
this depletes the fund that would other.
wise be available for commercial uses, and
commercial borrowers are forced 10 pay
in the shape of increased interest charges,
IS placed on the whole commerce Of the
country.
The mere statement Of these facts shows
that our present system is seriously de-
fective. There is need OF a change. I'm
fortunately, however, many OF the pro-
posed changes must be ruled from consid-
Grafton because they are complicated, are
not easy of comprehension and tend to dis
turb existing rights and interests. We must
also rule out any plan which would ma
terially impair the value OF the United
States 2 per cent bonds now pledged to
secure circulation, the, issue OF which was
made under conditions peculiarly creditable
to the treasury. | do not press any special
plan. Various plans have recently been
proposed by expert committees OF bankers.
Among the plans which are possibly feas-
ible and which certainly should receive
your consideration is that repeatedly
brought to your attention by the present
secretary Of the treasury, the essential fea-
lures OF which have been approved by
many prominent bankers and business men.
should be permitted to issue a specific pro-
portion of their capital in notes of given
kind, the issue TO be taxed at so high a
rate as to drive the notes back when not
wanted in legitimate trade. This plan
would not permit the issue of currency TO
give banks additional profits, but to meet
gency.
do not say that this Is the right sys-
tenn. ! only advance IT TO emphasize my
belief that there is need for the adoption
of some system which shall be automatic
and open TO all sound banks, so as to
avoid all possibility Of discrimination and
favoritism.
Relations to Outlying Possessions.
most earnestly hope that the bill to
provide lower tariff for or else absolute
free trade in Philippine products will be-
come law. No harm will come to any
American industry; and while there will
be some small but real material beneht
10 the FtlipinOs the main benefit will come
by the showing made as TO our purpose to
do all In our power for their welfare.
This nation owes no more imperative duty
TO itself and mankind than the duty OF
managing the afTairs OF all the Islands I'M
der the American fag-the Philippines.
Porto Rico and Hawaii-so as to make II
evident that IL T. In every way to their
advantage that the flag should ny over
them.
American citizenship should be conferred
on the citizens OF Porto Rico. The harbOr
OF San Juan in Porto Rico should be
dredged and improved. The expenses Of
the federal court Of Porto Rico SHOULD be
met from the federal treasury. The adj
ministration Of the AFFAIRS OF Porto Rico,
together with those OF the Philippines,
Hawaii and our other insular possessions
should all be directed under one executive
department; by preference the Department
Of State or Department OF War.
The needs OF Hawaii are peculiar: every
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