The Denison review. [volume] (Denison, Iowa) 1867-current, 1907-12-04

control of the National Government
Those which were under national con-
troll stood the test.
National control of the kind above adj
vocated would be to the benefit of every
well-managed railway. From the stand
point of the public there is need for ad-
ditional tracks. additional terminals, and
improvements in the actual handling of
the railroads, and all this as rapidly as
possible. Ample, safe, and speedy trans
portation facilities are even more neces-
sary than cheap transportation. There
fore. there is need for the investment OF
money which will provide for all these
things while at the same time securing as
far as is possible better wages and
shorter hours for their employees. There
fore, while there must be just and rea-
sonable regulation of rates, we should be
the first to protest against any arbitrary
and unthinking movement to cut them
down without the fullest and most care
full consideration of all interests con-
cerned and of the actual needs of the
situation. Only a special body of men
acting for the National Government I'M
der authority conferred upon it by the
Congress is competent to pass Judgment
on such matter.
Those who fear. from any reason, the
extension of Federal activity will do we'll
to study the history not only of the ma
tional banking act but of the pure-food
law, and notably the meat inspection law
recently enacted. The pure-food law was
opposed SO violently that its passage was
delayed for a decade: yet it has worked
unmixed and Immediate good. The meat
inspection law was even more Violently
assailed; and the same men who now de-
nounce the attitude of the National Gov
eminent in seeking to oversee and con-
troll the workings of interstate common
/ carriers and business concerns, then as
serted that we We're ''discrediting and
running great American industry Two
years have not elapsed, and already il
has become evident that the great bene-
fit the law confers upon the public is ac-
companied by an equal benefit to the
reputable packing establishments. The
latter are better off under the Law, than
they We're without it. The benefit to in
terstate common carriers and business
concerns from the legislation advocate
would be equally marked.
Pure Food Law
Cooperation Necessary.
incidentally, in the passage of the pure
food law the action of the various state
food and dairy commissioners showed in
striking fashion how much good for the
whole people results from the hearty CO.
operation of the federal and state Off
Gals in securing given reform. 1t is
primarily to the action of these state
ment of this law; for they aroused the
people, first to demand the enactment
and enforcement of state laws on the
subject. and then the enactment of the
federal law. without which the state laws
We're largely ineffective. There must be
the closest cooperation between the ma
tlonal and state governments in admin
lsterng these laws.
Words of Last MESSAGE
on Currency Recalled.
In my message to the congress a year
ago, spoke as follows of the currency:
II especially call your attention to the
condition of our currency laws The ma
uonal bank act has ably served great
purpose in aiding the enormous business
development ,of the country, and within
ten years there has been an nciease-, in
circulation per capita from S2141 to 1873 0S
For several years evidence has been ac-
cumulating that additional legislation is
needed. The recurrence of each crop sea-
son emphasizes the defects of the pres
ent laws There must soon be a revision
OF them because to leave them as they
are means to incur liability of business
disaster. Since your body adjourned
there has been fiuctuation in the in
terest on call money from two per cent.
to 80 per cent. and the fluctuation 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 oscil-
lation. Even worse than such huctua-
ton is the advance in commercial rates
and the uncertainty felt in the sufficiency
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 in
terror banks into the speculative field.
rms depletes the fund that would 9TH
h Ia fr,, ,;.,1
and commercial borrowers are forced to
pay abnormal rates, so that each fall a
] 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 COM
plfcated. are not easy of comprehension
and tend to disturb existing rights and
4 interests. We must also rule out any
plan which would materially impair the
value OF the United States two per cent.
bonds now pledged to secure circulation,
, the issue of which was made under con
ditions peculiarly creditable to the treas
ury. L do not press any especial plan.
| Various plans have recently been pro-
posed by expert committees of bankers
! among the plans which are possibly feaS-
IDLE and which certainly should receive
your consideration is that repeatedly
brought to your attention by the present
secretary of the treasury, the essential
features of which have been approved
by many prominent bankers and bust
ness men. According to this plan ma
tional banks should be permitted to issue
specified 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 legiti-
mate trade. This plan would not per-
init the issue of currency to give banks
additional profits but to meet the emer-
gency presented by times of stringency
II do not say that this is the right
system. l only advance it to emphasize
my belief that there is need for the adop-
ton of some system which shall be au-
tomato and open to all sound banks.
SO as to avoid all possibility OF discrim-
ination and favoritism. Such plan
would tend to prevent the spasms of high
money and speculation which now OBJ
tain in the New York market: for AT
present there is too much currency at
certain seasons of the year and its ac-
emulation at New York tempts bankers
to lend 1t at low rates for speculative
IA at tbar