The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-12-07

question Of developing American ship
ping. / trust that a law embed. n, n
substance the views, or a major part
of the views. exprest in the report on
this subject laid before the house at
ITS last session will be pas.
well aware that in former sea-s OBJ
Itionable measures have been proposed
lin reference to h encouragement OF
american shipping; but it seems to me-
THAT the proposed measure is as
Ily unobjectionable as any can be. 1t
Twill Of course benefit primarily u
lseaboard states, such as Maine, Louis
lana, and Washington; but what bene-
ldts part Of our people in the end ben
''efts all; just as government aid TO
Irrigation and forestry in the west is
really of benefit, not only to the Rocky
mountain states. but to all our
TRY. If it prove ~impracticable to enact
Ia law for the encouragement OF ship
iping generally, then at least provision
SHOULD be made for DETER communi-
with South America, notably
flor fast mail lines to the chief Ou-
IAmerican ports. 1t is discreditabie TO
lus that our business people, for lack
LOT direct communication in the shape
lof lines of steamers with South Amer
lica, should in that great sister CONT
luent be at d disadvantage compared
Ito the business people of Europe.
CURRENCY REFORM.
7 especially call your attention 10
1.-The second subject, the condition Of
Jour currency laws. The national bank
- 49, Il ~cn-nI - n-roo NJrTyN0Cn IN
Iaiding the enormous business develop
Iment of the country; and within ten
Iyears there has been an increase in
lcirculation per capita from S21.41 to
lS33.08. For several years evidence has
been accommodating that additional
Legislation is needed. The recurrence
Iof Zach crop season emphasizes the de-
fleets of the present laws. There must
Isoon be a revision Of them; because
ito leave them as they are means TO in
lcur liability of business disaster.
lSince your body adjourned there has
been a %fuctuation in the interest on
Icall money from 2 per cent to so per
Icent; and the f~luctuation was even
Igreater during the preceding six
months. The secretary Of the treas
Jury had to step in and by wise action
lput a stop to the most violent period
lof oscillation. Even worse than such
@thuctuation is the advance in CONNER
lcial rates and the uncertainty felt in
1.-THE sufficiency of credit even at high
rates. All commercial interests suffer
during each crop period. Excessive
rates for call money in New York at
tract money from the interior banks
Into the speculative field; this depletes
1.-THE fund that would otherwise be
available for commercial uess; SO that
leach fall a tax, in the shape OF in
~Icreased interest charges, is placed on
1.-The whole commerce OF the country.
The mere statement of these facts
shows that our present. system is seri,
lousy defective. There is need OF
lchange. Unfortunately, however, man.
iof the proposed changes must be rulec
from consideration because they are
complicated, are not easy OF compre'
Ihension, and tend to disturb existing
rights and interests. We must afs<
|rule out any plan which would ma
Iterially impair the value Of the United
Estates 2 per cent bonds now pledged
Ito secure circulation, the issue O
(which was made under conditions pc
lculiarly creditable to the treasury.
lido not press any especial plan. VarI
Ious plans have recently been proposed
iby expert committees Of bankers
lAmong the plans which are pOsslbl,
feasible and which certainly shoule
receive your consideration is that re
tpeatedly brought to your attention D.
the present secretary of he treasury
the essential features Of which nav
been approved by many prominen
bankers and business men. According
ito this plan national banks should d
permitted to issue a specified proper
ltiOn of their capital in notes OF a g1Vel
kind, the issue to be taxed at so h1gl
Ia rate as TO drive the notes back whel
mot wanted in legitimate trade. Ih1
Ip1an would not permit the issue O
!currency to give banks additional pro
fits, but to meet the emergency pre-
scented by times of s~tr1ngency.
l do not say that this is the rign
system. | only advance it to empha
size my belief that there is need TO
the adoption of some system whlcl
Ishall be automatic and open to al
sound banks, SO as to avoid all pos
Isibility of discrimination and favorit
ism. Such q plan would tend to p e
vent the spasms of high money an
Speculation which now obtain in tn
New York market; for at presen
There is too much currency ait &c tai
seasons of the year, ana It's accumu
Ilation at New York tempts bankers t
lend it at low rates for ~speculatlv
purposes; whereas at other time
when the crops are being moved Their
is urgent need for a large but tempo
Irary increase in the currency supply.
must never be forgotten that this ques
ltion concerns business men generall
Iquite as much as bankers; especial,
lis this true of stockmen, farmers, an
business men in the west; for at pres
lent at certain aso Of h year tn
difference in interest rates between tn
least and west is from 6 to 10 per cent
whereas in Canada the correspondent
difference is but 2 percent Any pIal