Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1906-12-04

III lHe shape VI hhCS ~
steamers with South America. should
in that great sister continent be at
q disadvantage compared to the bus
mess people of Europe.
CURRENCY REFORM IS NEEDED
Plan Propossd by Secretary Shaw I
Should Be Considered.
| especially call your attention TO
the second subject, the condilon or
our currency laws. The national bank
act has ably served a great purpose
in aiding the enormous business de-
of the country; and within
ten years there has been an increase
in circulation per capita from $2l.4l
TO $33.OS. For several years evidence
has been accommodating that additional
legislation is needed. The recurrence
CT each crop season emphasizes the
defects Of the present laws. There
must soon be a revision Of them,. be-
cause to leave them as they are
means to incur liability of business
disaster. Since your body adjourned
there has been fiuctuation IN the
interest on call money from per
cent to 30 per cent; and the huctua-
ton was even greeter during the pre-
ceding six months. The secretary OF
the treasury had to step in and ~
wise action put q stop 70 the most
violent period of oscillation. Even
worse than such fiuctuation - enc al
vance in commerciar rates ana the
uncertainty felt in the sufiiciency OF
credit even at high rates All COM
mercial interests suffer during each
crop. period Excessive rates for call
money in New York attract money
from the interior banks into the spec
,tylatiye field; this depletea the fund
that would otherwise be available for
commercial uses, and cOmmefclai
borrowers are forced to- pay abnor-
mai rates; SO that each fall 2 tax.
lin the shape Of increased interest,"
charges, is placed on the whole COM
merce Of the country. al
The mere statement OF these iac.s
shows that our present system y Sc
riousiy defective. There Is neec on
d change. Unfortunately. however.
MANY Of the proposed changes must
re ruled from consideration because
they are complicated. are not easy
IL comprehension, and tend to dls-
turb existing rights and interests. we
must also rule out any plan wnlcn
you'd materially impair the value Of
me United states 2 per cent ponds
NOW pledged to secure circulation,
me issue of which was made under
l.onditions peculiarly creditable to the
ltreasury. 4 do not press any especiai
ulan, various plcns have recently
oeen proposed by expert commh.eees
OF bankers. Among the plans "nIcn
ire possibly feasible ana wnicn GER
.ainly should receive your CONSIDER
! alton is that repeatedly brought 20
YOUR att ntion by the present secre.
| tary Of the treasury. the essentiai
| Lures of which have been approx
| q, y many prominent BANKERS ana
SIS men. According to this plan
national banks should be ' permitted
| 20 issue a specified proportion OF their
.apital in notes of q given kind; the
,ssue to be taxed at so high rake
| IN to drive the notes back when ho'
4 wanted In legitimate trade. rms plan
/ wcuiu not periilt the ISSUE u eu'
| .sncy To give p;-nks aVoitioAai Pr
ats. put 10 meet the elnerkeiivy rte'
.entea ny times or st.lnseney.s'
ss 4 90 not say that tins - tAe fiss'
sysrem. / Only advance ~ 10 enipnd'
s,xe my beief mat there Is neeu
lor the adoptlon or some sys.eh
lwnich shall ne automatic ana opel
y, ~, suund banks, SO az TO axulu a.
.,osslbiiitN OF discrimination ana ~
i yoritlsrm. such pan wOuiu tens
20 prevent the spasms or niEn none!
lanu speculation when now obtain y
Inc New i ork market; Tor AT presen
lssiere ~ LOO mucn currency al Ger
tsin seasons or the year, and It's &C
lcumulation at New York tempt
Oa mixers TO lend u at low rates ~
. speculatice purposes; whereas
lcfher times when the crops are be
ing moved there II urgent need 10
aar~a hnt tamDOrary increase II