The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1906-12-04
CURRENCY REFORM.
Amendments 20 Existing Laws Are
Badly Needed.

especially call your attention to
our our currency iawsS The national bank
act has ably served great purpose in
aiding the enormous business develop
ment OF the country. and within ten
circulation per capita from s2l.41 to
sS3.oS For several years evidence has
been accumulating that additional leg
islation Is needed. The recurrence OF
fects OF the present laws. There must
soon be a revision of them. because to
leave them as they are means 70 incur
liability OF business disaster. Since
fiuctuation in the interest on call
money from two per cent to 80 per
cent, and the nuctuatlon was even
greater during the preceding six
had to step in and by wise action put
a stop 70 the most violent period OF os-
Citation. Even worse than such fiucfu-
alton Is the advance in commercial
rates and the uncertainty felt in the
suffciency Of credit even at high rates.
All commercial interests suffer during
each crop period. Excessive rates for
call money in New York attract money
from the interior banks into the specu-
lative neld. this depletes the fund that
would otherwise be available for COM
mercial uses. and commercial borrow
ers are forced TO pay abnormal rates;
Increased interest charges is placed
on the whole commerce OF the country
The mere statement OF these facts
shows that our present system is seri-
ously defective. There Is need OF a
change. Unfortunately. however many
Of the proposed changes must be ruled
from consideration because they are
complicated. are not easy OF compre-
rights and interests. We must also
rule out any plan which would ma
terlally impair the value Of the United
States two per cent bonds now pledged
TO secure circulation. the issue Of
which was made under conditions Pc
culiarly creditable to the treasury
do not press any special plan. Various
plans have recently been proposed by
the plans which are possibly feasible
and which certainly should, receive
your consideration Is that repeatedly
brought to your. attention by the pres
enf secretary Of the treasury. the es-
sential features OF which have been
approved BY many prominent bankers
and business men. According to this
plan national banks should be per-
OF their capital in notes Of given
kind. the issue to be taxed at so high
a rate as 70 drive the notes lack when
not wanted in legitimate trade This
currency to give banks additional
profits but TO meet the emergency pre-
sented by ltimes Of stringency.
Need Of Automatic system.
I do not say that this Is the rfrht
system I only advance II to emph {
size my beliefNthat there Is need Tor
the adoption OF some system which
shall be automatic and open to All
sound banks. so rs TO avoid all pos
sIbIlity Of discrimination and favorit-
ism. such a plan would tend to@nre-.
vent the spasms OF high money and
speculation which now obtain IL ihe
New York market; for at present
there Is too much currency at ctrtalff
seasons Of the year. and Its accuuu-
to lend Il nj low rates for speculative
purposes, whereas At other times when
the crops are bling moved there IS
urgent need for large but temporary
must never be forgotten that this
question concerns business men gem
eraiiy quite - much Is 11nkers. t7-