The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1906-12-03
CURRENCY REFORM.
Serious Defects In Present System
Pointed Out.

e.
second suhicct-thc condition of our
currency laws. The national bank act
has ably served a great purpose in
aiding the enormous business develop.
mcut Of the country. aud within ten
years there has been an increase iu
circulation per capita from SILL 10
S33uS. For several years evidence has
been accumulntiug that additional leg
islatlon Is needed. The recurrence W
each crop season emphasizes the De.
fcCts Of the present laws. There must
soon hc revision of them. because To
leave them az they are monnS to incur
liability Of business disaster. since
your holy adjourned there has been a
nuctuatiou in the interest ON call mon
cy from per cent to 80 per cent. and
the tluctuntion was even greater dur.
Ing the preceding six months. The sec.
rctlry Of the treasury had 10 stop IN
and 10y wise action put stop TO the
most violent period of oscillation.
Even worse than such nuctuntiou ls
Tire advance I'm commercial rates and
the uncertainty fclt I'm the suHclcucy
of credit even 1T high rates An COM
mcrcial interests suffer during each
crop period Excessive rates for can
money in New York M ract money
from tie interior nauks tn, tNc rroru.
lat.yc field. This dcplotc, the fnud
that would otherwise hc available for
commercial uses. and commercial hor-
rowCrs are forced TO pay abnormal
rates. 50 that each fall tax. I'm the
shape Of Increased interest charges. is
placcd on the whole commerce Of the
country.
The mere statement of these facts
shows that our present system is srri-
ously defective. There Is need of a
change. Unfortunately. however. many
of the proposed changes must be ruled
from consideration because they are
complicated, are not easy Of comprc-
heusion and tend 20 disturb existing
rights and interests We must also
rule out any plan which would ma
tcrially impair the value Of the United
States . per cent bonds now pledged TO
secure circulation, the issue of which
was made under conditions peculiarly
crcditablc TO the treasury | do not
press any especial plan. Various plans
have recently been proposed by expert
committees Of bankers. Among the
plans which are possibly feasible and
which certainly should receive your
consideration Is that repeatedly
brought 10 your attention 10y the pres
cnt secretary of the treasury, the cs-
sehtal features Of which have been
DV. D.
approved ny many prominent bankers
ahH business men. According 70 this
pun haIiohAl banks should be permit
',I 10 issue Spe'lhcd proportion OF
,.''I '"p'lai III ho'eS OF a given KIND,
'''' '>H,' u NC ''N'd "l 50 hIEh q rate
"N !" ur''G inc notes pack when not
N''',,,' III ''N''''".,'c ,r'"'' 4his pan
"'"'" '''' .'''"l' ul' ISSUE "I currency
""''NH ""'"""'''" p'"H's' but 70
80 ,.', 7'''' I''s'"''" ny u'i'eH
o' SUI '''-'''''
Spasms OF High Money"
| DO not say that this Is the right
system. | only advance it 70 cmpha-
size my belief that there Is need for
the adoption Of some system which
shall be automatic ana open 10 all
SouNu banks, so as 10 avoid all pOSsi-
hility of discrimination ana favoritlsm
such n plan would tend to prevent the
spasms Of high money and speculation
which now obtain in the New York
market for at present there IS too
much currency at certain seasons of
the year. ana It's accumulation at New
York tcmpts bankers TO lend it at low
rates for speculative purposes, whereas
ut other times when the crops are be
Ing moved there IS urgent need for q
large but temporary increase In the
currency supply 1t must never be for
gotten that this question concerns bust
ness men generally quite as much as
bankers. Especially Is this true OF
seasons son " Of the o year @ ' Se dcDonce %I GSra