Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-04
Necessity Of Immediate
Currency Reform
Strongly Urged

Il especially call your attention tG
the condition of our currency laws.
The national bank act has ably served
a great purpose In aiding the enor-
nous business development of the
country. and within ten years there
has been an increase IN circulation
pei capita from S2t.4t 10 S33.0S. For
several years evidence has been aC-
cumulating that additional legislation
~ needed The recurrence Of each
crop season emphasizes the defects OF
the prosentlaWs. There must o o he
a revision of them. because To leave
them as they are means TO incur IL
ability OF business disaster. Since
your body adjourned there has been
a "nuCtuatiOn IN the interest on call
money from , per cent 10 80 per cent,
and the fluctuations were 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 os-
cillation. Even worse than such huc-
tuation is the advance In commercial
rates and the uncertainty felt In the
sutficicncy of credit even al high
rate. All commercial interests suffer
during each crop period. Excessive
rates for call money In New York at
tract money from the interior banks
into the speculative field. This de-
pletes the fund that would otherwise
be available for commercial uses.
and commercial borrowers are forced
To pay abnormal rates. SO that each
fan 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 our present system Is seriously
defective. There is need OF u change.
Unfortunately. however, many OF the
proposed changes must be ruled from
anngfAnVaIinn hnFumgn thew ara conn
plicatod. and not easy OF cOmprehen-
sion. and tend 70 disturb existing
rights and interests. We must also
rule put any plan which would ma
~toriaily impair the value OF the United
States 2 per cent bonds now pledged
10 secure circulation, the issue OF
which was made under conditions pc
culiarly creditable 10 the treasury.
/ do not press any especial plan. Va
rious plans have recently been pro-
posed by expert committees OF bank
ers. Among the plans which are
possibly feasible and which certainly
should receive your consideration Is
hat repeatedly brought TO YOU at
tention by Tho present secretary Of the
the essential features or
which have been approved by many
prominent bankers and business men.
According 10 this plan national banks
should he permitted 70 issue n spe-
Gifted proportion OF their capital In
Of a given Kind. the issue 90 hc
taxed at So high q rate as 90 drive the
notes Jack When not wanted in lcgi-
innate trade. This plan would not
the issue OF currency 10 give
banks additional profits. but tn meet
the emergency presented by times Of
stringcncy
~ DO not say that this is the right
system / only advance % to emphs-
lie my belief that there Is need for
adoption OF some system which
shall be automatic and open Co all
sound banks. 10 as to avoid ail possi-
hility of discrimination and HVOri-
such q plan would tend Goo
prevent the spaHmF OF high money
and speculation which now obtain in
New YORK market Tor at present
b. too much currency at certain
SEASONS of the year. and Co. accumu-
80 New York temUt- nike tp
it at low rates Cor speculative
purposes. whereas at other Umt
when the crops are bcing moved there
Is urgent need for "a large bur fcm-
purary Increase iu the Durrens sup
nly. o. must never hr forgotten that
his question concerns business men
generally quite as much az hankerz
specially o. this true nf -tockmen.
farmers. and husiur-- men loo the
west. for a. present If rrrfHfu seasons
li The year The difference Don Interest
rates between tire cast aud west Is
rom q TO- 30 Der cent Whereas ln Can
the corresponding difference is but
=, per cent AM plan must nf course
the Interest," 1t western and
.outhrru bankers as carefully A. A. .
guards the Interests uf New York nr
'hicaEo banker and must he drawn
rom the stauduuiufs 90 thf farmer A..
the merchant un ices tnau from
standpoint of the eity banker aud
country banker
: again urge on the III the /,
~ immediate attention fo this
natter. We need a. greater elasticity :
81 our currency provided. uf Nurse