Arizona republican., 1906-12-05

rates All commercial interests suffer during each crop period ExcessiVe rates for call money in NeE York al tract money from the interior hznks into the speculative field; thiE ReplessS the fund that would otherwise hs ayzsS- able Tor commercial uses, and cOr.- mercial borrowers are forced Co pay se- nOmal rates; so that each faH a tsK- in the shape of increased interest charges. is placed on the whole eorzs- Elerce of the country
 The mere statement of thsse taefs shows that cur present system is seT- iously defective. There is need of d change. Unfortunately. however, snzHT of the proposed changes must eS ruseSt from consideration because they are complicated, and not easy Of cesspse- hension, and tend to disturb existing rights and interests. We must also rule out any plan which would mater ially impair the value of the Unis-d States ? per cent bonds now pledged ts secure circulation. the issue ss SAich was made under conditions peculiarly creditable to the treasury Go not press any especial plan Various plans have recently been proposed es expsrt committees of bankers. Among the plans which are possibly feasible ard which certainly should recSiVs your consideration is that TcFsaatedlg brought to your attention by the pres ent secretary of the treasury, the es- sential features of which have been approved by many prominent hanSef-s and business men According to this plan. national banks should ee permit ted to issue a specified proportion Ct their capital in notes of a given kind,
 the issue to be taxed at EO high a rate
 as to drive the notes back when nos
 wanted in legitimate trade This plan
 would not permit the issue of currency
 to give banks additional profits. but Co meet the emergency presented by times of stringency.
 I do not say that this i. the right sys- tenn. I only advance it to emphasize my belief that there IS need for the adoption of some system which shall
 be automatic and open tO all sound banks. so as to avoid all possibility Oi discrimination and favoritism-
 The law should be amended so as specifically 10 provide that the funds derived from customs duties may D. treated by the secretary of the treas ury as he treats funds obtained undsr the internal revenue laws Ihere should be a considerable increase ll bills of small denominations Permis- sion should be given banks. fl neces- sary under settled conditions. to retire their circulation to larger amount than three millions a month
 PHILIPPINE TARIFF.
 I most earnestly hope that the oill Go
 provide a lower tariff for or else abso- Iute free trade in Philippine FrOducis will become a law. No harm VIII coIiie to any American industry and while there will be some small but real ma teriaI benefit to the Filipinos. the man benefit will come by the showing mad
 as to our purpose to do all in our pow CT for their welfare So far our action
 in the Philippines has been abundanill Justified. not mainly and indeed nc-
 primarily because of the added dignity
 it has given US as a nation by proNins that we are capable hOnorahly and et-
 ficiently to bear the international ouf
 dens which a mighty people snou'a
 hear. but even more because or t1r immense benefit that has come To ths
 Continued on Page .