The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1906-12-04

Amendments 10 Existing Laws Are
Badly Needed.


Badly Needed.
/ especially call your attention to
the second subject the condition Of
act has q bly, served a great purpose in
aiding the enormous business develop
ment OF the country; and within ten
years there has been an increase In
circulation per capita from S214l to
$33OS. For several years evidence has
been accommodating that additional Leg
isiation ~ needed. The recurrence Of
each crop season emphasizes the de-
fects Of the present laws. There must
soon be a revision Of them. because to
leave them as they are means 70 incur
liability 81 business disaster. Since
your body adjourned there has been a
fluctuation in the interest on call
money from two per cent. TO 30 per
cent? and the huctuatiOn was even
greater during the preceding six
months. The secretary Of the treasury
had to step in and BY wise action put
a stop 10 the most violent period Of os-
cillatiOn. Even worse than such fuctu-
alton Is the advance in commercial
rates and the uncertainty felt in the
sunciency Of credit even at high rates.
All commercial interests suffer during
each crop period. Excessive rates for
from the Interior banks into the specu-
iatlve field; this depletes the fund that
would otherwise be available for COM
mercial uses, and commercial borrow
ers are forced to pay abnormal rates:
30 that each fall tax. in the shape %
Increased interest charges. Is placed
on the whole commerce Of the country.
The mere statement Of these facts
shows that our present system is seri-
ouRly defective. There is need Of a
change. Unfortunately. however. many
81 the proposed changes must be ruled
from consideration because they are
complicated. are not easy or compre-
hension and tend 70 disturb existing
rights and Interests. We must also
ala D. .fl414 I'll a
ferially impair the value Of the United
States two per cent bonds now pledged
10 secure circulation. the issue Of
which was made under conditions pc
culiariy creditable 20 the treasury. I
do not press any sDecial plan. Various
plans have recently been proposed by
expert committees of bankers. Among
the plans which are possibly feasible
ana which certainly should receive
your consideration Is that repeatedly
brought to y0cr attention by the pres
ent secretary 81 the treasury. the es-
sentlal features OF which have been
approved by many prominent bankers
and business men. According to this
plan national banks should be per-
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
currency TO give banks additional
rrolite but 70 meta the emergency pre-
sented by times Of stringency
Need Of Automatic System.
do not say that this is the right
system. ] only advance IL 10 empha-
size my belief that there Is need for
the adoption of some system which
shall be automatic and open to an
sound banks. 50 as 20 avoid All pos
sfhIiity Of discrimination and fav0rit-
ism. such plan would tend g pre-
vent the spasms Of high money and
speculation which now obtain in the
New York market, Tor at present
there is TOO much currency at certain
seasons Of the year. and Its accumu-
iation at New York tempts bankers
TO fend 30 az low rates for speculative
unrn0ses. whereas az other times when
the crops are hing moved there IS
Increase ln the currency supply. tt
must never De forgotten that this
question concernE hutiness men gem
orally quite az much IS bankers. es-