Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1907-12-03


there can be no such differences as
to the need Of unflinching persever-
ance in the war against successful dis.
honesty.
Currency.
Il especially call your attention to
the condition of our currency laws
The national bank act has ably
served a great purpose in aiding the
enormous business development of the
country and within ten years there
has been an increase in circulation
per capita from $21.41 to $33.0S. For
several years evidence has been accu-
mulattng that additional legislation
is needed. The recurrence OF each
or opseason emphasizes the deefcts of
the present laws. There must soon
pc a revision of them, because to leave
them as they are means to incur LA
bility of business disaster. Since your
body adjourned there has been
tluctuation in the interest on call
money from 2 per cent to 30 per cent
arld the fiuctuation was even greater
during the preceding six months. The
Secretary of the Treasury had to step
in and by wise action put a stop to
the most violent period of oscillation.
Even worse than such fluctuation Is
the advance in commercial rates and
lne uncertainty felt In the suficiency
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
ulative field. This depletes the fund
that would otherwise be available for
commercial uses, and commercial Dor.
rowers are forced to pay abnormal
rates, so that each fall tax, In the
shape of 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
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 con-
dltions peculiarly 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 consideration is
that repeatedly brought to your atten-
ton by the present Secretary OF the
Treasury, the essential features of
which have been approved by many
prominent bankers and business men.
According to this plan national banks
should be permitted to issue a speci-
lied proportion of their capital In
notes OF a given kind, the issue to be
taxed at so high rate as to drive the
notes back when not wanted In legi-
innate trade. This plan would not
permit the issue of currency to give
banks additional profits, but to meet
the emergency presented by times of
stringency.
4 DO not say that this is the right
system. only advance it to empha.
size 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 posi-.
bility OF discrimination and favorit-
ism. Such plan would now obtain
In the New York market; for at pres
ent there Is too much currency at Ger.
tain seasons Of the year, and it's &C.
cumulation purposes; whereas at 9TH
er times when the crops are being
moved there is urgent need for
large but temporary increase in the
currency supply. 1t must never be
forgotten that this question concerns
business 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
interest rates between the East and
West Il from a "a IN nAr cant uhara