The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1907-12-05

suits. Such a law to be really ef.
fcct.ye must of course be administer.
ed by an executive body, and moi
merely 10y means Of lawsuits. Tn,
design should be to prevent th,
abuses incident to the creation of un.
healthy and improper combinations
instead of waiting until they are II
existence and then attempting to de
siroy lhem by civil or criminal pro.
cocdin2s.
Puro-Food Law.
Incidentally, in the passage Of the
pure-food law the action of the var
ious State food and dairy commits
sioners showed in striking fashion
how much good for the whole peo-
pie results from the hearty coopera-
tion of the Federal and State Off
cials in securing a given reform. 1t
is primarily to the action Of these
State commissioners that we owe the
enactment 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 were
largely ineffective. There must be
the closest cooperation between the
National and State governments in
administering these laws.
Currency.
In my message to Congress a year
ago | spoke as follows of the cur
reney:
II especially call your attention 10
the condition Of our currency laws.
The national-bank act has ably serv-
ed a great purpose in aiding the
enormous business development of
the country, and within ten years
there has been an increase in circu-
lation per capita from $21.41 to
$33.0S. For several years evidence
has been accumulating that addition
al legislation is needed. The recur-
renee of each crop season emphasizes
the defects of the present laws. There
must soon be a revision of them, be-
cause to leave them as they are means
to incur liability Of business disaster.
Since your body adjourned there has
been Auctuation in the interest on
call money from 2 per cent to so
per cent, and the hustation was even
greater during the preceding six
months. The Secretary of the Treas
ury had to step in and by wise action
put stop to the most violent period
of oscillation. Even worse than such
fluctuation is the advance in CONNER
cial rates and the uncertainty felt in
the sufiiciency of credit even at high
rates. All commercial interests suf-
fer during each crop period. Excess
sive rates for call money in New
York attract money from the interior
banks into the speculative field. This
depletes the fund that would other
wise be available for commercial uses
and commercial borrowers 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.
1.-The mere statement of these facts
show that our present system is SER
iously 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 2 per cent bonds
now pledged to secure circulation,
the issue Of which was made under
peculiarly creditable to the
Treasury. l do not press any espec-
lal plan. Various plans have recent
ly been proposed byexpert committees
of bankers. Among the plans which
are possibly feasible and which GER
tainly should receive your considera-
ton is that repeatedly brought to
Your attendtion by the present Secrc-
tary of the Treasury, the essential
features Of which have been appro-
we'd by many prominent bankers and
business men. According TO this plan
national banks should be permitted
to issue a specified proportion 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
presented by times of stringeney.
81 do not say that this is the right
sy stem. | 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 pos
sibility Of discrimination and favor
itism. Such a plan would tend to
prevent the spasms Of high money
and speculation which now obtain IN
New York market; for at present
there is too much currency at GER
tain seasons Of the year, and its ae-
emulation at New York tempts
bankers to lend it at low rates for
purposes; whereas at
other times when the crops are being
moved there is urgent need for a
large but temporary increase in the
currency supply. It must never be
forgotten that this question concerns
bnsiness men oeueralIv ouite ne nucn