The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1906-01-26

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Banks are the natural servants OF
commerce, and they should be made
the chief instrument CT American fl
nance, and upon them should be placed
the burden of furnishing and maintain
ing a circulation adequate to supply
the needs of our diversified industries
and of our domestic and foreign com
merce; and the issue of this should be
so regulated that a sufficient supply
should be always available for the bus
mess interests of the country.
Interest rates are a potent factor
in business activity, and in order that
! these may be equalized to meet the
varied needs of the seasons and of
widely separated communities, and to
prevent the recurrence of financial
stringencies which injuriously affect
legitimate business, it is necessary
that there should be an element of
elasticity in our monetary system.
Every consideration of prudence de
mands the addition of this element to
our currency system. The evil does
not consist in an inadequate volume,
but the rigidity of this volume which
does not respond as it should to the
varying needs of communities and of
seasons. Imitation must be avoided;
but some provision should be made
that will insure a larger volume of
money during the fall and winter
months than in the less active months
of the year. so that the currency will
contract against speculation, and will
expand for the needs of legitimate
business. At the present the Treas
ury Department is at irregularly re-
curing intervals obliged, in the inter
est of the business world-that is, in
the interest of theAmerican public
to avert financial crises by providing
a remedy which should be provided by
Congressional action"
This viii be recognized as a part of
President Roosevelt's message, De-
cember 2, 1902, on the subject of banks
and the currency, and which he reit-
crates in his last message to Con
gress.
Every word of this is full of mean
ing, and until acted upon will do to
repeat by the next President and the
next.
The President rightly places the
burden of American finance upon the
banks-the American bankers-Amer
ica's financiers.
Commerce, in her greatly increased
volume, is emphasizing the Presidents
position by placing her burden upon
the banks; and the bankers them
selves are beginning to realize the
truth of all this, and this great ques-
ton is moving the minds of Americas
financiers, and it is to be hoped that
they will suggest to Congress some
measure which will fully meet the de
mands of commerce and settle the
money question.
If, as natural servants of commerce.
the burden of furnishing and main
tanning a circulation devolves on the
banks, then, as a banker, beg to sug-
gest a plan whereby this may be
borne and a plan which | believe
covers every point of thePresidents
message, and which, if carried out,
will add the roof to our currency sys-
ten. Briefly suggested, it is this
BY act of Congress establish DE
partment of Banking and Currency
which, in connection with the nation
al banks, should undertake to furnish
and maintain a circulation adequate
to supply the needs of our diversified
industries, possessing the element of
elasticity"
The act should provide, that this
Department be authorized to receive
notes Of national banking associations
for sums not exceeding their capital
stock up to the sum of $500,OOO, said
note to be secured by pledge of sol |
vent customer notes for an amount
25 per cent in excess of amount of