Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-04

1 ~ASAAA vSA'1A ~ Soo.Vo OF several ycstta
evidence has been accommodating that adj
ditional legislation is needed. The recur-
renee OF each crop season emphasizes the
| defects Of the present laws. There must
| soon be revision Of them because to
leave them as they are means to incur
| liability OF business disaster. Since your
oody adjourned there has been a fiuctu-
alton In the interest on call money from
| per cent to 80 per cent; and the fiuctu-
alton was even greater during the pre-
Geolng SIX months The Secretary OF the
| treasury had to step in and by wise ac-
ton put stop to the most violent period
nuctuation is the advance in commerclai
rates and the uncertainty felt in the sIi,
! nclency OF credit even at high rates. All
| commercial interests suffer during each
| crop period. Excessive rates for cali
money in New York attract money from
| the interior banks into the speculative
| neid; this depietes the fund that wonlo
merce of the country. -, :
| The mere statement of these fact
SHOWS that our present system Is seri-
I ouslys defective. There is = need OF
| Of the proposed changes must be ruled
otherwise be available for commerce. al
uses and commercial borrowers are Fore
| ed to pay abnormal, rates; SO that each
fall a tax, in the shape of increased inter-
est charges. is placed on the whole COM
fl ON consideration because they are COM
pacated, are not easy of, comprehension.
and tend to 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 now
| pledged to secure circulation, the issue OF
which was made under conditions Pc
I-eu1iarly creditable 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 considera-
ton Is that repeatedly brought to your
attention by the present Secretary OF the
| Treasury, the essential features of whicn
! have been approved by; many prominent
/ bankers and business men. According to
! this plan national banks should be pee
| mitted to issue a specified proportion OF
their capital in notes Of given kind. the
issue to be taxed at SO high a rate as to
drive the notes back when not wanted in
| legitimate trade. This plan would not
permit the issue of currency to give
| banks additional profits, but to meet the
emergency presented by times of stcin-
gency. .-
| do not say that this is the right sys-
| tenn. l only advance 1T to emphasize my
belief that there is need for the adoption
i of some system which shall be automatic
and open to all sound banks SO as to
avoid all possibility of discrimination and
faVor1t1sm. Such 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
HuCH currency at certain seasons OIL the
| year, and its accumulation at New York
tempts bankers to lend it at low rates for
speculative purposes; whereas at other
times when the crops are being moved
there is urgent need for a large but tenn
! porary increase in the currency supply.
1t must never be forgotten that this ques-
ton concerns business men generally
quite as much as bankers; especially is
this true OF stockmen, farmers, and bust
ness men in the West; for at present dt
certain seasons of the year tie difference.
| in interest rates between the East and
the West is from to 10. per cent, whera-
as in Canada the corresponding difference
is but per cent Any plan must, Of
/ course, guard the interests of western
and southern bankers as carefully as 1t
guards the interests Of New York or Chi
cago bankers; and must be drawn from
! the standpOints of the farmer and the
merchant no less than from the stand
| points Of the city banker and the country
banker.
| The law should be amended so as spe-
officially to provide that the funds de-
rived from customs duties may be treat
ed by the Secretary Of the Treasury as
he treats funds obtained under the in
ternal revenue laws. There should be q
considerable increase in bills of small de-
nominations. Permission should be given
lions, to retire their circulation to a
larger amount than three millions q
month
Philippine Tariff.
1 most earnestly hope that the bill to
provide lower tariff for or else absolute
free trade in Philippine products will be-
come a law. No harm will come to any
American industry; and while there will be
some small but real material benefit to the
Filipinos, 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 Philippines has been
| abupdantly justified, not mainly and indeed
not primarily because of the added dignity
it has given us as nation by proving that
we are capable honorably and efficiently to
bear the international burdens which a
mighty people should bear, but even more
because Of the immense benefit that has
coma to the people Of the Philippine Islands.
In these islands we are steadily introduce
ing both liberty and order, to greater de-
gree than their people have ever before
have provided an efficient police force. and
have put down ladronism. Only in the
islands of Leyte and Samar is the authority
of our Government resisted and TINS by
tious inspiration of fakirs and pseudo-re-
ligious leaders. We are constantly increas-
ing the measure OF liberty accorded the
islanders and next spring, II conditions
warrant, we shall take great stride for
ward in testing their capacity for self-gov
eminent by summoning the first Filipino
legislative assembly; and the way In which
they stand this test will largely determine
whether the self-government thus granted
will be increased or decreased; for II we
have erred at all in the Philippines 1t has
been in proceeding too rapidly in the direc-
ton of granting a large measure Of self
government. We are building roads. We
have, for the Unreasonable good of the
people, arranged for the building Of rail-
roads Let us also see to it that they are
given free access to our markets. This
nation owes no more imperative duty to it
self and mankind than the duty Of manag-
ing the affairs Of all the islands under the
American fiag-the Philippines. Porto Rico.
and Hawaii-so as to make 1t evident that
| it is in every way to their advantage that
the flag should fly over them.
Porto Rican Affairs.
American citizenship should be conferred
on the citizens Of Porto Rico. The h rbor
| of San Juan in Porto Rico should be
dredged and improved. The expenses of
the federal court of Porto Rico should be
met from the Federal Treasury. The ad-
ministration Of the affairs of Porto Rico,
together with those of the Philippines,
| Hawaii, and our other insular possessions.
should all be directed under one executive
department.; by preference the Department
Of State or the Department Of War.
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