The Caucasian. (Clinton, N.C.) 188?-1913, 1907-12-05

post upon both the Department Of
justice and the courts an impossible
burden; il is not feasible TO carry on
rore than a limited number of ssteh
suite. Such a law TO be really ef-
feet.Te must Of course be administer
Ell by an executive body, and not
merely " means of lawsuits. The
design s.iould be to prevent the
abuses incident to the creation of un-
healthy and improper combinations.
instead Of waiting until they arc In
existence and then attempting to de-
s;roy ih"m by civil or criminal pro-
ceedin2g.
Pure-F Food Law.
Incidentally, in the passage of the
pure-food law the action of the var
lous State food and dairy commits
sioners showed in striking fashion
how much good for the whole peo-
pie results from the hearty eoopera-
tion of the Federal and State off
cials III securing a given reform. 1t
is primarily to the action of these
SS~bS ludI HC O"G tIlt
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 l spoke as follows Of the eur
rency:
'' especially call your attention TO
the condition of our currency laws.
The national-bank act has ably serv-
ed a great purpose in aiding the
I enormous business development Of
the country, and within ten years
there has been an increase in circu-
latiOn per capita from $21.41 to
$t3.0S. For several years evidence
has been accommodating that addition
T al legislation is needed. The recuT-
renee Of each crop season emphasizes
the defects of the present laws. There
must soon be revision Of them. be-
cause to leave them as they are means
10 incur liability of business disaster
Since your body adjourned there has
been a fuctuation in the interest OH
call money from 2 per cent to SO
per cent, and the fuutation 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 sucll
| fiuctuatlon is the advance in CONNER
cial rates and the uncertainty felt in
the suf1iciency of credit even at hioli
rates. All commercial interests sui
fer during each crop period. Exces-
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 a"n f~~no.l
to pay abnormal rates, so that each
fall tax, in the shape of lncre..seu
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
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
conditions peculiarly creditable to the
Treasury. [ 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-
tion is that repeatedly brought to
your attendtion by the present Secre-
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 stringency.
- do not say that this is the right
system. I 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
ltism. Such 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 ac-
emulation at New York tempts
bankers to lend it at low rates for
speculative 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