New-York tribune., 1906-12-05

Of each crop season emphasizes the defects ~
the present laws. There soon ba -
vision Of them, because to leave them as M.
are means to incur liability of business 6isasta-
Since your body adjourned there has been 4
per cent 80 per cent: and the fiUetuation was
even greater during the preeedmg SIX months
The Secretary of the Treasury had TO sten ~
and by wise action put a stop to the most violeu-
period of oscillation Even than sucL
fuctuation is the advance in commercial ratez
and the uncertainty felt in the sufficlency 80
credit even high rates All commercial IN
terests suffer during each crop period Exces-
Sive rates for call money In New York attracr
money from the interior banks into tne specn
lative field: this depletes the fund that vvouId
otherwise be available for commercial uses and
commercial borrowers arc forced to pay abaor
NAL rates; so that each fall tax, in the shapa
Of increa sed interest charges is placed on ~
whole commerce of the country.
The mere statement of these facts show. that
our present system is seriously defective. There
is need OF a change. Unfortunately. however
many of the proposed changes must be ruled
from consideration because they are cOrlplicat-
ed, are not easy of comprehension. and tend IN
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 pledged to secure circulation, the is-
of which made under conditions pecul-
iarly credita5le 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 feasihle
and which certainly should receive your con-
sideration is that repeatedly brought TO your
attention by the present Secretary OF the Treas
ury, the essential features Of which have been
approved by many prominent bankers and busi-
ness men According TO this plan. national
banks should be permitted 10 issue a specified
proportion of their capital In notes or a given
kind, the issue to be taxed at so high rate
| as 10 drive the notes back when not wanted IN
legitimate trade This plan would not permit
the issue Of currency 10 give banks additional
profits but 20 meet the emergency presented by
times of stringency.
1 do not say that this is the right system.
only advance ii to emphasize my belief that
there is need for the adoption of some system
which shall be automatic and open 70 all sound
banks, so as to avoid all possibility of discruli
nation and favoritism. such plan would tend
to prevent the spasnns of high money and specu-
Iatior which COW obtain in the New York mar
ket, for =. present there Is too much currency at
certain seasons of the year, and its accumula-
ton In New York tempts bankers TO lend it az
low rates for speculative purposes; whereas ac
other times, when the crops being moved,
there is urgent need for a large but temporary
increase IN the currency supply. IL must never
be forgotten that this question concerns busi-
ness men generally quite as much as bankers;
especially is this true of stockmen. farmers and
business men in the West for at present at
certain seasons of the year the difference IN in
terest rates between the East and West Is from
s to 10 per cent, whereas In Canada the CORE
spondins difference is only : per cent. Any
plan must. of course. guard the interests Or
guards the interests or New YORK or Cnlcago
bankers: and must be drawn from the stand
pzints of the farmer and the merchant no iasF
than from the standpoints of the city banker
ard the country banker.
The law should be amended so as specifically
to provide that the funds derived from customs
duties NAV be treated by the Secretary of the
Treasury as he treats funds obtained under the
internal revenue laws: There should be con
siderable increase in bills of small denonina-
tiOns. Permission should be given banks. Il
necessary under settled restrictions. to retire
their circulation to larger amount lnan three
millions month
I most earnestly hope that the bill 10 provide
a lower tariff for else absolute free trade in
Philippine products will become a law No
Philippine Tariff. American industry, and
while there will be
Iipfu
the main benefit will come by the showing made
as to our purpose TO do all in our power for
their welfare. So far our action in the Phllip-
pires has been abundantly justified not mainly
and indeed not primarily because OF the added
dignity it has given US as nation by proving
that are capable nOnOrably and efficiently 70
bear the international burdens which a mighty
people should bear, but even more because or
the immense benefit that has come 10 the people
of the Philippine Islands. In these islands
are steadily introducing both liberty and order,
to greater degree than their people have ever
before known. We have secured Justice We
have provided an efficient police force and have
put down ladronsn. Only in the islands OF
Leyte and Samar is the authority of our gov
ernment resisted. and this by wild mountain
tribes under the superstitous inspiration of
fakirs and pseudo religious leaders. We are
constantly increasing the measure of liberty
accorded the islanders, and next spring, II con-
ditions warrant, shall take a great stride
forward in testing their capacity for self
government by summoning the first Filipino
legislative assembly; and the way IN which
they stand this test will largely determine
whether the eif-GOVernment thus granted VIII
be Increased or decreased: for if we have erred
at all in the Philippines il has been in proceed
Ing too rapidly in TIE direction of granting
large measure of self-government We are
building roads We have, for the immeasuraole
good of the people, arranged for the building OF
railroads. Let also to it that they are
given free access 10 our markets This nation
owes no imperative duty TO itself anu
mankind than the duty of managing the affairs
OF all the islands under the American fas-the
Philippines Porto Rico and Hawaii-so as 30
make il evident that il Is in every way To their
advantage that the flag should fly over tham
American citizenship should be conferred "1
the citizens of Porto Rico. The harbor cf san
Juan. in Porto Rico. should be Credgsd and I'M
proved The expenses OF
Porto Rican the federal court OF Porto
Affairs Rico should be met from
the Federal Treasury The
administration of the affairs of Porto Rico, TO-
gether with those of the Philippines, Hawai-
and our other insular possessions. should all he
directed under one executive department oy
preference the Department of State or the De-
partment of War.
The needs Of Hawaii are peculiar; every aid
should be given the islands; and our efforts
should be uncedsing 20 develop them along the
l.nes of a community OF
Hawaii. small fceeholderS. not Sf
great planters with cools
titled estates. Situated as this territory Is, IN
the middle of the Pacific. there are duties IN
posed upon this small community which do ncs
fall in like degree or manner upon aAy otn.I
American community. This warrants our treat
ing IL differently from the way In which VS.
treat territories contiguous TO surrounded oY
sister territories other states. and Jusures tne
setting aside of portion of our revenues 10 oe
expended for educational and internal improve
ments therein. Hawaii is now making an enor'
to secure immigration ft in the end to assun'
the duties and burdens of full American citlSsn
ship, and whenever the leaders in the various
industries of those islands finally adopt our
ideals and heartily join our administration n
endeavoring TO develop middle class or SUI
stantial citizens. a way will then be rouno y
deal with the commercial and industrial prop. p