The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-12-03

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 pre-
sented by times OF stringency.
II do not say that this is the right
system. l 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 tavorlt-
ism. Such a plan would tend to pre-,
vent the SpaSms Of high money and
speculation which now obtain in the
New York market, for at present there
is too much currency at certain sea-
sons OF the year, and its accumulation
at New York temptS bankers to lend
it at low rates for speculative pur-
poses. whereas at other times when
the crops are being moved there is
urgent need for a large but temporary
increase in the currency supply. 1t
must never be forgotten that this CUES
ton concerns business men generally
quite as much us bankers. Especially
is this true of Stockmen. farmers and
business men in the west, for at pres
ent ut certain seasons Of the year the
difference in interest rates between the
east and west is from to 10 per cent,
VIII W II
difference is but > per cent. Any plan
must o. course guard the interests OF
western and southern bankers as care
fully as it guards the interests of New
York or Chicago bankers and must be
drawn from the standpoints OF the
farmer and the merchant no less than
from the StanGpOints OF the city bank
er and the country banker"
again urge on the congress the need
of immediate attention to this matter
We need 4 greater elasticity in our cur
rency. provided. of course, that we rec
ognize the even greater need Of a safe
and secure currency. There must al
ways be the most rigid examination
by the national authorities. Provision
rency. The emergency issue should
OF course be made With an effective
guaranty and upon conditions care
fully prescribed by the government.
Such emergency issue must be based
on adequate securities approved by the
government and must be issued under
q heavy tax. This would permit cur
rency being issued when the demand
for it was urgent, While securing it's
retirement as the demand fell off. 1t
is worth investigating to determine
whether officers and directors Of M.
tional banks should ever be allowed to
loan to themselves. Trust companies
should be subject to the same superyi-
sion as banks. Legislation to this effect
should be enacted for the District o.
Columbia and the territories.
Yet We must also remember that
even the wisest legislation on the sub
ject can only accomplish a certain
amount No legislation can by any
possibility guarantee the business CON-
munity against the results of specula-
tive folly any more than it can guar
,antee an Individual against the results
of his extravaganza. When an indi-
yidual mortgages his house to buy an
automobile he invites disaster, and
when wealthy men or men who pose as
such or are unscrupulously or foolish
ly eager to become such indulge in
reckless speculation, especially if it is
accompanied by dishonesty, they jeop-
ardiZe not only their own future, but
the future of all their innocent fellow
citizens, for they expose the whole
business community to panic and dis
tress
The income account Of the nation IS
In a most satisfactory condition. For
the six fiscal years ending with the
LIST Of July last the total expenditures
and revenues of the national govern
ment, exclusive Of the postal revenues
and expenditures, were. in round num-
bers. revenues $685. 100000 and ex-
penditures $3,275, 100000. The net ex-
cess of income over expenditures, in
Guiding in the latter the $5O,OO0,OOO ex-
pended for the Panama canal, was
$19O,OOO,OOO for the six years, an aver
age Of about $31,0O0,O00 a year. This
represents an approximation between
income and outgo which it would be
hard to improve. The satisfactory
working of the present tariff law has
been chiefly responsible for this ex-
Z cellent showing. Nevertheless there is
an evident and constantly growing feel
ing among our people that the time is
rapidly approaching when our system
of revenue Legislation must be revised