Crittenden press. [volume] (Marion, Ky.) 1879-1907, 1906-12-06
CURRENCY REFORM.
Amendments TO Existing Laws Are
Badly Needed.

especially call your attention to
the second subject the condition of
our currency laws. The national bank
nct has ably served a great purpose in
aiding the enormous business develop
mrnt Of the country; and within ten
years there has been an increase in
circulation per capita from S21.4l to
i33.0S For several years evidence has
been accommodating that additional leg
islation is needed. The recurrence OF
each crop season emphasizes the de-
tects Of the present laws There must
soon be revision Of them. because to
leave them ~ they are means to incur
liability of business disaster since
fiuctuation In the interest on call
money from two per cent to 80 per
cent; and the lluctuaton was even
months. The secretary OF the treasury
had to step in and by wise action put
a stop to the most violent period Of os-
cillatiOn Even worse than such fiuctu-
alton is the advance in commercial
rates and the uncertainty felt in the
sufiiCiency OF credit even at high rates.
Zach crop period. Excessive rates for
call money in New York attract money
from the interior be nks into the specu-
lotive field; this depletes the fund that
would otherwise be aVaila BILE for COM
mercial uses and commercial borrow
ers are forced to pay abnormal rates;
so that each fall tax. in the. shape Of
on the whole commerce OF the country
The mere statement Of these facts
shows that our present system is seri-
change. Unfortunately, however. many
OF the proposed changes must be ruled
from consideration because they are
complicated, are not easy OF compre-
rights and Interests. We must also
rule out any plan which would ma
terially impair the value OF the United
States two per cent. bonds now pledged
to secure circulation. the issue OF
which was made under conditions pc
culiarly creditnble 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 feasible
your consideration Is that repeatedly
brought Ia your attention by the pres
ent secretary of the treasury, the es-
approved by many prominent bankers
and business men. According to this
plan national banks should be per-
mittcd to issue. a specified proportion
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 10 give banks additional
profits. but to meet the emergency pre-.
sented by times Of stringency.
Need or Automatic system.
do not say that this is the right
system. I only advance II 20 empha-
size my belief that there IL need for
tho adoption Of some system which
shall DC automatic and open to all
sound banks, 30 as to avoid all pos
sihllity Of discriminate and favorit-
ism such plan would tend 10 pre-
vent thr spasms cf high money aud
spCculnt Ion which now obtain in the
New York market: fAr at prcsen
there Is too much currency at certain
seasons ~ the year. and It's accutnu-
lation At New York tpmpts bankers
10 lend II al Low rates for speculative
purposes: whereas ~ other times whom
thc crOpg arC bips Liot Cd there Is
urgent need for 'arC" but t"'1nor ny
increase in the cu'r6nry s'rnly, II
must never be tsrg0ttcn that his
question "nnttrnS business men gem
orally quite 40 muSh as bankersi es-