The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-04

commercial interests suIer during each
money in New York attract money from
the interior banks into the speculative
otherwise be available for commercial
uses. and commercial borrowers are
each fall a tax, in the shape Of increased
interest charges. is placed on the whole
The mere statement OF these facts
shows that our present system is ser
iously defective There is need OF
change Unfortunately, however. many
Of the proposed changes must be ruled
plicated, are not easy OF comprehension.
and tend to disturb existing rights and
interests; We must also rule out any
plan which would materially impair the
value of the United States 2 per cent
bonds now pledged to secure circulation,
the issue Of which was made under con
ditions peculiarly creditable to the treas
ury. I do not press any especial plan
Various plans have recently been pro
Among the plans which are possibly feas-
ible and which certainly should receive
your consideration is that repeatedly
brought to your attention by the present
features Of which have been approved BY
many prominent bankers and business
men. According to this plan national
Gifted proportion of their capital in nofes
OF given kind, the issue to be taxed
at so high a rate as to drive the notes
back when not wanted in legitimate
issue of currency to give banks add
tional profits, put to meet the emergency
presented by times of stringency
I do not say that this is the right sys-
tenn. l only advance it to emphasize nv
behef that there IS need for the adoption
OF some system which shall be automatic
and open to all sound banks, so as TO
favoritism. Such a plan would tend 10
prevent the spasms OF high money and
speculation which now obtain in tie New
York market; for at present there is TOO
much currency at certain seasons Of the
year, and its accumulation at New York
sseInpts bankers to lend it at low rates
LOT speculative purposes; whereas al
moved there is urgent need for a large
DuI temporary increase in the currency
Supply. Il must never be forgotten that
ms Questlon concerns business men gen
orally quite as much as bankers: espe-
clally Is this true of stockmen. farmers
ana business men IN the west: for at
present at certain seasons of the year the
difference in interest rates between the
east ana the west Is from to 10 per cent
whereas in Canada the corresponding dif-
ference IS but per cent. Any plan must,
of course, guard the interests Of western
and southern bankers as carefully as il
guards the interest of New York or Chi
cago bankers; and must be drawn from
the standpoints of the farmer and the
merchant no less than from the stand
points of the city banker and the coun-
try banker.
The law should be amended so as spe-
officially to provide that the funds de-
rived from customs duties may be treated
by the secretary of the trea slIrv as he
treats funds obtained under the internal
revenue laws. There should be a con-
siderable increase in bills of small de-
nominations Permission should be given
tons, to retire their circulation to a
larger amount than three millions a
Philippine Tariff.
I most earnestly hope that the bill TO
provlde lower tariff for or else absolute
free trade in Philippine products Will be-
come a law. No harm will come to any
American industry; and while there will
be some small but real material benefit
to the. Filipinos, the main benefit wiz
come by the showing made as to our
welfare So far our action IN the Philip
pines has been abundantly justified, not
mainly and indeed not primarily because
of the added dignity It has given US as
a nation by proving that we are capable
honorably and efficiently to bear the in
ternatfonal burdens which a mighty peo-
of the immense benefit that has come TO
the people of the Philippine Islands In
both liberty and order. to 4 greafer de
gree than their people have ever known.
We have secured justice. We have pro-
vided an efficient polio force, and have
put down ladronism. Only in the Islands
OF Leyte and Sanar IS the authority Of
our government resistedrand this by wild
mountain tribes under the superstitious
inspiration of fakirs and pseudo-religious
leaders We are constantly increasing the
ers. and next spring. If conditions war
rant, we shall take a great stride for
government by summoning the first Fill
pino legislative assembly; and the way
determine whether the self-government
thus granted will be increased or de-
creased IOT II we nave erred at all In the
philippines it has been IN proceeding too
rapidly In the direction of granting a
are ar building roads we nave for the lm
easIrable good of the people arranged
see to it that they are given free access
to our markets This nation owes no
kind than the duty Of managing the az
fairs of all the islands under the Amerl-
can hag-the Philippines. Porto Rico and
hawaii-so as to make 1t evident that it
IS IN every way to their advantage that
the flag should fly over them.
American citizenship should be con-
ferred on the citizens Of Porto Rico. The
harbor of San Juan IN Porto Rico should
of the federal court Of Porto Rico Should
be met from the federal treasury. The
Rico. together with those Of the Philip
pines, Hawaii, and our other insular pos
executive department.; by preference the
department OF state or the department
The needs of Hawaii are peculiar: every
aid should be given the islands; and our
efforts should be unceasing to develop
them along the lines of a community %
cooiie-tilled estates Situated as this ter
ritory is, in the middle OF the Pacific,
there are duties imposed upon this small
community which do not fan In ike de-
gree or manner upon any other American
it differently from the way in which We
treat territories contiguous to or sur
rounded by sister territories other
states. and justifies the setting aside OF a
portion Of our revenues to Be extended
for educational and Internal Improve
ments therein. Hawaii IS now making an
effort to secure immigration At in the end
TO assume the duties and burdens Of full
American citizenship, and whenever the
leaders in the various industries Of those
islands finally adopt our ideals and heart
lily join our administration IN endeavor-
ing to develop a middle class OF substan-
tial citizens, a way VIII then be fodRd to
deal with the commercial and Industrial
problems which now appear to them 90
serious. The best Americanisn is that
which aims for stability and permanency
Of prosperous citizenship, rather than I'm
mediate returns on large masses of capt.
LII