New-York tribune., 1906-12-06
NATIONAL FINANCES.
BR. SH4H'S LAST REPORT.
Stronger Currency System Needed
Treasury Operations.


The harvest Of 1906 overtaxed our granaries. our
warehouses, the carrying capacity OF our railroads,
,i a. ,fi+ H S'li ,rcil,s,,b 70 tho limit the
credit possibility OF tho country. cotton crop
bushels Of wheat nearly SoO0eoOo0 bushels OF corn.
SoeOel0eo bushels Of potatoes garnered IN single
hased thereon. During the summer months grain
were empty freight cars stood on sidetracks busi-
ness men nshed in mountain streams or rested "a at
fortably well supplied with money, and interest
body except 10 those who recognized that in this
latitude crops mature in the fail 80.
fhe government guarantees against yeoW NJ IeTt1, ,
,bdiesona food. II inspects banks in the interest
Of deDositors. and does thousand other things
safeguard the people against disaster of various
kinds This policy Of goYernmsn1ai supervision on io re
duty Of the government also TO pTotect ne P"i ue
against fnaciai panics which. in this country: nss9
caUsed more mental and more physical suneIiii5e suie
Ing that under our system no possible cooperation
can be secured among banks. each independeht I oI
y fb ces ana fe reserve Of the country even
~ ~ tb S5Ie season very low, the Secretary Of
Treasury undertook the task Of making some siiSht
5oVhlSn % hSnnes HF Of me trade ssoooo5 and locked 1t up
and IN part by deliberate and premeditated with
drawsls His only excuse tor withdra~lng me me
when its presence invited Speculation. 10 have
ready T e restore oS Tep b ey ce4an gq nesG disaster ana
Al the approach OF autumn, business men re-
tivities. Crops began TO mature, granaries and
warehouses began 70 an freg9t cars r1 were n put null, n
tiplied number end in multiplied amounts, while @
ready cash than at other seasons. The strain in
eyitably began 70 develop Interior banks called
some instances seemed think it strange that the
centres. whittier it had been sent TO be loaned on
call, sould cause any stT1ngency az these centres;
surely be read ana neglected 10 study actual condi
creased business but 10 the presence or sudden
-,-,-.,
ing and railroads found themselves utterly unable
20 transport the rendered freight Before the first
Of September great quantities OF freight had aC-
eumulated west OF the Rocky Mountains, which
have trackage enough nor equipment sufficient to
transport. little later ships were compelled TO
houses or in Cars The New York Central Railroad
With is four tracks 9id not have & ayaaPe al CdTs
TO meet unprecedented demands. its board Of di,
for sdditionaI eqSpment. Other roads were equally
onsSseo ss 2g eisag hOSa % IA prn6nal g Tairoads
ot the country within period Of ninety days ap,,
equipment. It became impossible TO place an
order for steel rails other equipment 20 be de-
TREASURY GIVES RELIEF.
Finding transportation facilities inadequate
seret sTv g ffa Tre9si,r eeoed IL T-iSe again To
facilitate the importation Of gold from abroad with
Under plain and uneqwvocal authority Of law, and
without a penny Of expense 10 the government ap-
proximately another S0ooo.Oo0 of gold was brought
from abroad and turned into the channels Of trade
midsammer M liiS %ss restored OF this, s0o6oo6 was
given 10 New York city and the same amount
however because the banks found il impossible 10
borrow the bonds with which 10 secure it, and un-
louis and Now orleans each received 100000;
baltimore. Louisville Kansas CITY. Cleveland and
CINCINNATI N.W0OoO each; Pittsburg. Buffalo. Min
NToipes nanyer sioux f'Itv Menpbis Peoria At
lanfa. Nashville and Sioux Falls approximately
the people that an this being done for en-
r.
Denver relieves financial tension at Wall Street will
also Acknowledge that deposit in New York re-
lieycs financial strinEency At Denver no material
water and nn6s its level about quickly.
The Secretary also offered 10 accept satisfactory
ent deposits 10 the extent of siSo0oooo conditioner
tost ne o9ndS thus feeaseG should he nInediate y
circulation had been ALREADY prepared and further
N conditioned that tho same should be retired the
rate Of Spfi."m month between March - and
" september This Is tho maximum contraction of
months which the secretary Of The treasury hs
naiEe' mif '"0er The a" 10 enforce or even to per
It ls never possible to measure the influence Of
TreasuTT transactions such here described.
nor TO state what olr experience would have been
66 6ad Inc I6sasgTT re fsed TO se IN given criss
interests m several staies who never made spec
ustive transaction in stocks bonds. recently eN-
pressed the opinion thar hut for the precautionary
every bushei Of grain in the tinted states S Would
hsve declined ere this 10 cents. Business in
appreciation and to give assurance that the action
taken was Immediately folt in their localities,
any city where deposit was actually made
ELASTICITY MICH NEEDED.
These cases have been thus reviewed not for the
purpose OF expressing opinion the wisdom
Or want OF wisdom exercised by this department
some Congressional legislation on the subject Of a
business from grain sack to merchant shin rosnonds
N some measure a. least 10 the actual needs Of
remains fixed quantity.
Various methods have been suggested by which
tls Well recognized defect in monetary syefern
may be corrected Committees composed Of pronli-
made reports. Financial writers So,tri'si@s fu % %
practical business men and impractica theoris :
discussed the question with much learning ana &C
essonaly in much ignorance. This is an verv
SIimnkabe plan VIII suggest something wise or
mI9'Ftnnately bur naturally, even the reports Of
sTneT5snoa ,9 because or their recognized
one thing only Is there wellngh universal agree
system that win contract when money IS re-
oonaant as promptly az # viii expand when money
Ihat VIII not as promptly contract It will ex-
Most ef The reports OF committees indorse all the
essential features OF the suggestions contained in
secent reports or the Secretary Of the Treasury.
vice. @hefe heavily taxed additional national bank cir
S,Ta ~ MS I Ia M e OsI ltportai!t Ieal-
the sHtraoldinary demand ceases It's retirement
h0tes i, aha IedseIning them. but by allowing the
deposit with the Treasury or at the TreasuTy
his accomplshes the contraction. and the bills
charged against this deposit Interest on the issue
mlI OF course cease when the deposit IS made. BY
eliminating the words secured by United States
bonds deposited with the Treasury OF the United
States from the present banknote, the additional
circulation issue need contain no distinguishing
feature. The government should accept the tax
premium tor underwriting the issue and
should guarantee its prompt redemption. Tie peo-
pie have become familiar with national bank notes
and Will not discredit them, though they fail 10
Tecte the fact that bonds have been deDosited
against them The ultimate redemption Of natona
bank is now guaranteed by the government
by reason OF the governments liza bility on ths
bonds deposited for their security. The direct
p3Iarartee OF the government would not change
this essential feature 50 far IS the public IS con