The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1906-12-15
REFORM.
Amendments to Existing Laws Are
Badly Needed.

-
l especially call your attention 70
the second subject. the condition ~
our currency laws. The national hanlr
act has ably served a great purnose IN
alulng the enormous business develon-
ment OF tne country; and within ten
years there has been an Increase in
circulation per capita from S2I4i 70
SSS.0S. For several years evidence hos
Deen, accumulating that additional leg
lslation is needed. The recurrence Of
sach CROP season emphasizes the de-
fects of the present laws. There must
soon be a revision of them, because 70
ieaVe them as they are means to incur
Iapliity OF business disaster. Since
S1uI oooy adjourned there has been a
Huctuatlon in the interest on call
money from two per cent To 20 nor
cent and the 1uctuation was evsn
greater during the preceding si~
months The secretary of the treasury
mad 10 step In n by wise action nnt
a stop to the most violent period OF ose
citation. Even worse than such fIIotu-
alton is the advance in commerciai
rates n the uncertainty felt in the
sHIInciency OF credit even at high rates.
All commercial interests suffer during
each crop period. Excessive rates for
call money In New York attract monev
from the Interior banks into he necn,
lauye heid; this depletes the fund that
would otherwise be available for COM
mercial uses, n commercial horrovy.
Srs are forced to a abnormal rates.
80 that each fall a tax. in the shane ~
increased interest charges. is piaced
On the whoIe commerce of the country.
n mere statement of these facts
SHOWS that our present system is seri-
ously defective. There is mead ~
change. Unfortunately. however manS
o. the changes must be ruled
complicated, are not easy of CONNIE
honsion, n tend to disturb exiatin~
rights and interests. We must slso
rule out any plan which would ma.
ssataily impair the value OF the United
states W per cent. bonds now pledged
10 secure circulation. the issue Of
Whlch was made under conditions NO
euliarly ereoitable 20 the treasury 7
40 NOT press any special plan. Various
plans have recently been proposed nv
expert committees of bankers. AmonS
the plans which are possibly feaeihIe
and which certainly should receivs
your consideration is that repeatedly
ent secretary of the treasury, the 90.
sential features Of which have bean
approved by many prominent benkers
and business men. According to this
pan national banks should be per-
mitteo TO Issue a specified proportion
or their capital in notes OF n gjven
KIND, the issue to be taxed al so hieh
q rate as to drive the notes back when
not wanted in legitimate trade. This
plan would not permit the ISSUE ~
currency to give banks additional
PROFITS, but to meet the nrsi
sented by times Of stringency
Need Of Automatic System.
] do not say that this is the r,sht
system. only advance Il to empha.
size my belief that there IS need To-
the adoption Of some system which
shall be automatic and open 10 ali
sVuna banks, SO as to avoid all pos
sibihty Of discrimination and favarit-
Ism; Such a plan would end 10 nre-
vent me spasms Of high money and
New York market; FOR al presenf
there Is too much currency at certain
seasons or the year, n its accumu-
lation at New York tempts banlrera
to lend IL at low rates for specuiaffvs
purposes; whereas at other times when
the crops are hing moved there IL
urgent need for n large but temporary
increase In the currency supply. II
must never be forgotten that this
queStlon concerns business men gene
erally quite as much as bankers: es-
~ uD9- n-e-,