The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1906-12-07

: W. ~ l. VIZ lills htllplttl ikl
oeiore the house at It's last session will he
passed. {! am We'll aware that in former
years objectionable measures have been
pfoposed IN reference to tho encourage
ment of American shipping; but it seems
to mo that the proposed measure is as
nearly unobjectionable as any can be. 1t
BOARD states, such as Maine, Louisiana
and Washington; but what benefits part
OF our people in the end benefits an; Just
as government aid to irrigation and for
estry IN the west is really of benefit. not
only, to the Rocky mountain states, but
10 an our country. If it prove impractic-
OF shipping generally, then at least provi-
sion should be made for better com1nnn.-
eation with South America, notably for
can ports. 1t IS discreditable to us chat
our business people, for lack of direct
eommunicatian in the shape OF lines of
mat great sister continent be at a disad-
vantage compared TIC the business people
of Europe.
Currency Reform.
l especially call your attention 20 the
second ,enos subject t., the e9ndiSion Of cur cur
ably served q great purpose in aiding the
enormous business developments of the
country; and within ten years there has
eeen an increase in circulation per capita
from S21.I1 to $S3.0S. For several years
evldence has been accommodating that adj
ditlonal legislation is needed. The re-
curfence of each crop season emphasizes.
the detects OF the present laws. There
must M soon be 4 revision OF them, be
to ii Incur up iH iiabilit sVer Of aI b, s9eS are si5 ms sam
Since your body adjourned there has been
a 1~luetuation in the Interest on call money
from . per cent. to % per cent. and the
H~uctuation was even greater during the
preceding six months.
The secretary Of the treasury had TO
step in and by wise action put 9 Stop TO
the most violent period of oscillation.
Even worse than suca fuctuation is the
advance in commercial rates and the un-
certainty felt in the suf1iciency OF credit
even at high rates. All commercial in
terests suffer during each crop period.
Excessive rates for call money in New
banks into the speculative field; this de-
pletes the fund that would otherwise be
avallable for commercial uses, and com
merc.al borrowers are forced to pay abb
normal rates: so that each fall a tax.
in the shape of increased interest charges,
Is placed on the whole of the
The mere statement of these facts
SHOWS t!lat our present system is seri-
ously defective, There is need of a
n~nfort5unately, however, many of the
proposed changes must be ruled from
Gated, arc not easy of comprehension.
and tend to disturb existing rights and
,n,ere sis, We must also rule OUT any
value of the United States 9 per cent.
bonds now pledged to secure circulation,
dhe issue of which was made under con-
ury. l do, not press any especial plan.
Various plans have recently been pro-
POSED by expert committees of bankers.
feasible and which certainly should re-
celve Your consideration is that repeat
np4s nro sssara to yoqr a by the
essential, features of which have beer
a ap6 b'si by many prominent bankers
national banks ShoTll bp na,y,ittn.l as
issue a specified proportion of their cap
i ta IL IN notes Of a given kind. the issue
the notes back when not wanted in legi-
tiinate trade. This plan would not pr
n n15 ; me issue of currency 10 give banks
gency presented by times of stringency.
To Prevent Spasms.
do not say that this is the right
system. I only advance it to emphasize |
my belief that there is need for the adop-
tomato and open to all sound banks.
so as to avoid all possibility of discriin,
nation and favoritism. Such a plan
high money and speculation which now
obtain in the New York market; for
at present there is too much currency at
cumulation at New York tempts bankers
to lend 1T at low rates for speculative
PURPOSES; whereas at other times when
the crops are being moved there is urgent
need for a large but temporary increase
in the currency supply.
1t must never be forgotten that his
concerns business men generally
quite as much as bankers: especially is
1hls true of stock1nen, farmers and bust
certain seasons of the year the difference
in interest rates between the east and
the west is from G to 10 per cent. where
as in Canada the corresponding difference
is but 2 per cent. Any plan must, OF
course, guard the interests of wesforn
and southern bankers as carefully as it
bankers; and must be drawn from
the standpoints of the farmer and the
no less than from the stand
The law should be amende so as spe-
cc1hcally to provide that the funds derived
the secretary of the treasury as he treats
funds obtained under the internal rev
erable la insre,s Thg }n ni Shop nf sb be q 1eonsid-
nations. Permission should be given
shihs, Il ne hee retia yth nnae cts, settled re-
larger amount than 100000 a month.
Philippine Tariff.
I most earnestly hope that the bill to
provide a lower tariff for or else absolute
free zee trade = in P%a!hilt2pine produets will be-
American industry; and while there viii
be some small but real material benefit
to the Filipinos. the main benefit viii
welfare. So far our action in the Phil
not mainly and indeed NOT prima arn. be-.
cause of the added dignity it has given
US as a nation by proving that we arc
capable honorably and efficiently to bea.
the International burdens which a mighty
people should bear, but even more be-
cause of the immense benefit that has
come to the people Of the Philippine
In these islands we are steadily intro
iucing both liberty and order, to a great
er degree than their people have ever
2efore known. We have secured justice.
We have provided an efficient police
force, and have u down ladronism. Only
n the islands Of Leyte and Samar Is the
of our government resisted and
his by. wild mountain tribes under the
'uperstitious inspiration of fakirs and
oseldo-religious eaders.
We are constantly increasing the meas
Ire of liberty accorded the Islanders, and
next spring, if conditions warrant, we
take a great stride forward in test
ns their capacity for self government
~ sunmoning the first Filipino legisla-
assembly; and the way in which they
itand this test will largely determine
whether, the self government thus grant
ID will be increased or decreased: for if
ye have erred ar all in the Philippines
t has been in proceeding too rapidly in
he direction of granting a large measure
If self government. We are h,1il1jnn-