The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-12-18

I
rates. All commercial interests suffer
during each crop period Excessive rates
for call money in New York attract mo-
ney from the interior banks into the spe-
cuative field; this depletes the fund that
would otherwise be available for CONNER
cial uses, and commercial borrowers are
forced to pay abnormal rates so that
each fall a tax in the shape of increased
interest charges, is placed on the whole
commerce of the country
The mere statement of these facts
shows that our present system is Sc
| riously defective. There is need of a |
change. Unfortunately, however. many
of the proposed changes must be ruled |
from consideration because they are COM
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 > per cent
bonds now pledged to secure circulation,
the issue of which was made under con-
ditons peculiarly creditable to the trea-
lsury. I do not press any special plan.
Various plans have recently been pro
posed by expert committees of bankers.
APPROVE SHAW'S PLAN.
Among the plans which are possibly
feasible and which certainly should re
ceive your consideration is that repeat
eddy brought to your attention by the
present Secretary of the Treasury, the
essential features of which have been
approved by many prominent bankers
and business men. According to this
, plan national banks should be permit
ted to issue a specific proportion of their
capital in notes of given kind the issue
to be taxed at so high a rate as to drive
the notes back when not wanted in legi-
i, innate trade. This plan would not per
nit the use of currency to give banks
additional profits. but to meet the emer-
:, gency presented by times of stringency.
do not say that this is the right sys-
tenn. only advance t to emphasize my
belief that there is need for the adop-
, tion of some system which shall be auto.
=, matte and open to all sound banks, SO
as to avoid all possibility of discrmina'
ton and favoritism. Such plan would
, tend to prevent the spasms of high mo
:, ney and speculation which now obtair
:, in the New York market. for at present
/; there is too much currency at certain
. seasons of the year. and its accumulation
" in New York tempts bankers to lend il
at low rates for speculative purposes
,e whereas at other times. when the crops
:. are being moved there is urgent neeC
= for a large hut temporary increase in
II the currency supply. 1t must never bC
forgotten that this question concerns bust
4 ness men generally quite as much MS
n bankers; especially is this true of stock
p men, farmers and business men in the
20 West, or at present at certain seasons
of the year the difference in interest rates
Is between the East and the West is from
E. 6 to 10 per cent whereas in Canada the
If corresponding difference is but PEE
4 cent ANY plan must of course, guarC
the interests of the Western and South
Us ern bankers as carefully as it guards
is the interest of New York or Chicago
N bankers. and must be drawn from tn
If standpoint of the farmer and the mer
J., chant no less than from the standpoint
~ of the city banker and the country brok
1t err
Or The law should be amended so rs spe
Y. officially to provide that the fund derive
!, from customs duties may be treated b.
ie the Secretary of the treasury as he treat
n funds obtained under the internal rev
to enue laws. There should be no consi
10 derable increase i'm bills of small demo
limitations. Permission should be give
u banks, if necessary, under settled res
IN trictiOns to retire their circulation to
tn larger amount than $3OOO,OOO a mOntl
is fREDUCE OR REMOVE
n PHILIPPINE TARIFF
'e. I most earnestly hope that the bill
provide n lower tariff for or else absC
Ilute free trade in Philippine product
~ will become a law. No harm will com
he to any American industry, and wlril
IT. there will be some small but real ms
os teria benefit TO the FilipinOs. the mai
- benefit will come by the showing mad
ns as to our purpose to do all in our powc
he for their welfare. So far our action
en- the Philippines has been abundantly in
m tilted, not mainly. and indeed not prin
:, arily, because of the added dignity
'. has given MS as n nation by proving thf
IL we are capable hOnorably and eticient
lr- TO hear the intprna tiOnal burden which
he mighty people should bear. but even MOI
because Of the Immense benefit that h'
" come to the people Of the Philippine 4
TO ands In these islands we are stendi
ur introducing both liberty and order 70
ur greater degree than thnir people hay
- over before known We have secure
" Justice We have provided on efiiciel
IN nolice force and we have nut down laar
lc- nism. Only i'm tho islands Of Lpvte NJ
re- SamAr is tho AUTHORITY of our Cover
to mNnt rosioted, nnd this Wild mountq
/ tpihnq nrInp fhn cnnnpgtitipnG ipani1,
&C. ton &C fakirs and nspudo religious leo
,e- ors, We Nro constantly increasing II
an measure of liberty accorded the islander
N. and newt snring, if conditions warrar
" we shall take a great stride forward