The Montgomery advertiser., 1906-01-05

that time the deposits became very much reduced. He did not deposit now when probably s25, 100000 or s30.0e0.000 or $40. .o00, 900 would have changed the entire state of affairs, for Ii is only the last s5,000. 900 or s30,0oo.0oo that are wanted that determines the high rate. He did not deposit now, not because he did not want to mix up money matters, but he could not spare the money
 If he had strengthened himself when money was less stringent, and when the banks simply kept the deposits be- cause 1t did not cost them anything, we would have seen another condition now; for the Secretary of the Treasury would be in q condition to help the money market If may use that expression and as much as T. am opposed to help by the sub-treasury in the matter. so long as we have such system as that. the sub-treasury is the depository or the money so long as the sub-treasury must play tho role which the Bank Of England plays in the money market Of England.
 If money is very easy in England. the Bank of England goes Into the market and borrows from the market. If money Is very tight in England. the market goes to the Bank of England to get it's money from the Bank of Eng land. Unfortunately our sub-treasury must play this role: 1t cannot help 1t.
 Panic Sure to Come.
 T don't like to play the role of Cas- sandra. but mark what l say. If this condition of affairs Is not changed and changed soon, we will get a panic in this country compared with which the three which have preceded 1t would only be child's play.
 There is no disaster soon upon us: don't misunderstood me; but I say that this Is tho time to prepare for 1t. We have long seFsion of Congress before us andSif the President of the United States will only apply part of the en- ergy which he has so admirably put into the attempt to regulate rates into an attempt to cure the condition of our circualting medium, the material in- terests of this country--and after all 1t Is the material' interests that under lie every business--the material inter- ests of this country can be safeguarded for a very long time to come.
 'sI have asked that this reeommen- dstion (referring to Secretary Shaw's plan) be referred to the Committee on Finance and Currency. I don't want to be understood that am in favor of the resolution. think 1t Is very poor re- commendation.
 T believe if our banks are allowed to issue 50 per cent. of their present circulation without security that it will go just where 1t ought not to go--it will go into speculation.
 Speculation Can stand It.
 Legitimate business, the merchant and manufacturer, cannot stand tax of per cent or per cent on addi- tional circulation. but speculation can stand 1t and the promoter can pay 1t and will. and 1t will go just where 1t ought not to go. But we ought to have an elasticity to our circulating me- alum. If we. are to give sthe banks discretion to Increase ct certain times tho circulating medium. 1t ought to be made certain that 1t he only done for the legitimate needs of commerce. in- dustry and trade.
 If any increase, don't believe 50 per cent, ia,needed, which would be two hnn- dred ana nifty miiliousif any Increase of circulatiun was secured solely by Legitimate commercial ps pet--coininer ctal paper based upon possibly q deposit with certain clearing houses in the country--if circulation Is secured bs legitimate commercial paper, 1t Is cer- talnly safe l do not want to go any further into the remedies. We have an excellent Committee on Finance and Currency. will leave 1t to them. but I repeat. the remedy must be found and must he found soon"