New-York tribune., 1907-12-06
uB. coRTELYoU,S REPORT

Interest in Secretary CortelyOus report VIII
chiefly attach 10 his statements regarding the
relief measures adopted by the Treasury III me
recent crisis aud the means Of preventing the
recurrence of such period OF hnanclai stflh-
gepcv. The measures adopted, particularly inc
issue Of the : per cent certificates. have heeh
somewhat criticised. and Mr.. Cortelyou has Shch
criticism in mind when he says
The Secretary of the Treasury is gwen
wide discretion in many matters Wherg ~ ne -
rarely called upon to exercise II ana Hlue -
any in others where il is needed daily par .
ticularly as certain of those having W ~. ~
with the vitally important subject OF our
currency In times Of emergency his hands
are virtually tied. If in sucn periooS %
stress in an effort to avert calamity ana serve
I the interests of all the people, he Is obllSeu
to resort TO unusual measures criticism Is ull-
fortunately in many Instances directed not 10 10
the effort give relief. even though II D
successful in accomplishing thai purpose
The laws under which he administers
his office should be made To meet the daliy
needs of the people. and his duties. sufficiently
onerous as they should not De maze
more burdensorne by restrictions which leave
him with the responsibility. but with no ade-
quate means at his disposal TO meet IT.
There is justice in what the Secretary says.
At such times he is under tremendous pressure
10 do something to relieve business. and as we
said when his recent action was taken, there Is
really only one thing he can do. and that is in
crease the note issuing capacity Of the banks.
1t is what has been done repeatedly in other
countries with better currency systems than
ours-what has, for instance been done several
times in the case of the Bank OF France IT is
not the fault of the Secretary of the Treasury
that this country has cumbersome banknote
system that it has TO borrow money of which II
has no need in order TO permit of the taking
out of more banknotes: nor is il his fault that
the notes once issued for a temporary purpose.
do not 90 promptly out of circulation when they
have served that purpose but the country has
70 call upon the Secretary TO devise some WAY
of getting them back again.
The fact that some means must be provided
for retiring the excess of bank circulation now
out is foreseen by Mr.. Cortelyou in his report
Nearly S4o000.O00 of additional notes have been
issued during this crisis and SI1Oo000u or "a
more may he issued based on the relief bonds
and certificates Moreover. the circulation al
ready out owing TO the great expansion in husi-
ness and the high rates of interest prevailing
was the largest Oh record. \ contraction IF
speculative enterprise and return Of business
to healthy. normal condition will probably
make this volume of banknoteS excessive To
provide for such an emergency Mr.. Cortelyou
recommends that the law limiting the retirement
Of bank circulation TO S9.u1.00n month %
amended and the limitation be left within The
discretion of the Secretary Of the Treasury.
This should by all means be done
With regard 70 currency reform MIR. Cor
telyou wisely refrans from making any specific
recommendation. He describes, however. IN
few words exactly what the country needs
Il deem it important that something be done -
speedily as may be consistent with thorough
consideration to provide under government
guarantee a greater elasticity to the currency
-snDlething which shall be automatic in lis oper-
-aton and which shall tend to equaliZe rates Of
interest not only in different sections of the
country but nj different periods of the year