The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-12-05

just as government aid to lrrigatio
: and forestry in the west is really @
: beneflt, not only 10 The Rock
Mountain states, but to all our cour
try. r. IT. prove impracticable 10 on
act law for the announcement q
shipping generally, then al least plo
vision shonld be made for better com
mnnication with South America
notably for fast mail lines To IN,
chief South American ports. II Is dis
creditable to lis chat our business
people for lack of direct communica
ton in the shape Of lines Of scamerS
with South America should in thai
great sister continent be al di:ad
vantage compared TO the business
people of Europe.
Currency Reform.
especially call your attention to
the second subject, the condition of
our currency laws. The national bank
act has ably served great purpose in
aiding the enormous business develop
nent Of the country, and within ten
years there has been an increase in
circulation per capita from $2i.4l to
$685. 0S For several years evidence has
beea accumel ating that additional leg
slatlon is needed The recurrence of
each crop season emphasizes the de
fects of the present laws. There must
soon be a revision OF them, because
70 leave them as they are means TO
ncnr liability Of business disaster.
Since your body adjourned there has
been a fiuctuatiOn in the interest on
call money from per cent to 80 per
cent; and the huctuation was even
greater during the preceding six
months The Secreta airy of the Treas
ury had 10 step in and by wise action
put a stop to the most violent period
of oscillation. Even worse than such
huctuation is the advance in CONNER
cial rates and the uncertainty felt in
the efficiency of credit even at high
rates. All commercial interests suf-
fer during each crop period. Excess
siye rates for call money to New
York attract money from the interior
banks into the speculative field; this
depletes the fund that would other
wise be available for commercial
uses, and commercial borrowers are
forged 10 pay abnormal rates; 50
that each fall a tax, in the shape of
increased interest charges. is placed
hA shS,fD nra ,g
ry.
The mere statement of these facts |
shows that our present system IS
seriously defective. There is need |
Of change. Unfortunately, how |
ever, many of the proposed changes
must be ruled from considerat ion be
cause they are complicated, are net
essy Of comprehension, and tend to
disturb existing rights and interests.
We must also rule out any plan
which would materially impair the
'alue Of The United States 2 per cent
,onds now pledged to secure circula-
on. the issue of which was made
inder conditions peculiarly creditabla
o the Treasury do not press any
special plan. Various plans have re.
emily been proposed BY expert com
nittees of bankers. Among the plans
which are possibly feasible and which
should receive your consid-
'ra1icn is that repeatedly brought to
our attention by the present Secre-
airy Of the Treasury, the essential fea-
nres Of which have meen approved 4
" many prominent bankers AMI bust
less men, According 10 this plan ma II
ional banks should be permitted 10 /
ssue specified proportion of their
'apital in notes Of n given kind, the
ssue 10 be taxed at so high a rate as
. drive the notes back when not dant-
ID in legitimate trade This plan II
would not permit the Issue of cur
ency TO give banks additional profits
mt to meet the emergency presented
y lines Of stringency
Il do not say that this Is the right
ystem. ! only advance It TO empha- +,
ize my belief that there is need for
he adoption of some system which
hall be automatic andopen TO all +,
g nd banks, 20 as to ayaid an posi-
ility Of discrimination and favorit-
SIN. Such plan would tend to pre-
.cnt the snasms of high money and {
peculation which now obtain in the
New York market; for at present
here is too much currency at certain
easons OF the year and its accu-
nula ion at New York tempts bankers {
o lend ii at low rates for speculative /
'urpo es; where rs at other times !
When the erops are being moved there {
s urgent need for a large but tenn y
'orary increase in the currency sup c
'ly. II must never be forgotten that i
his question concerts business men .
enerall yquite as much as bankers; g
specially isc this true OF stockmen.
armer.' and business men in the I
Vest; for at present az certain sea {
ons of the year the difference In in r
crest rates between the East and 3
he West is from G TO 10 per cent. 9
'hereas in Canada the corresponding d
Inference is but 2 per cent. ANY g
Ian must. Of course. gaurd the inter b
SIS Of western and .oufhnrn hapir I